Answer:
A good way to determine if expanding the business into international trade is to use a tool to analyze the international enviroment.
The tool that can be used is PESTEL, which is an accronym for Political, Economical, Social, Technological, Enviromental, and Legal factors.
To complete a Pestel, the strategist of the company simply has to add the relevant factors related to the external enviroment in each one of the six cateogories.
Like this, the strategist can analyze the international enviroment, in order to determine whether it is advisable to expand the technological business or not.
Answer:
- <u>"non-rival" and "non-excludable".</u>
- <u> $18.</u>
- <u>less</u>
- <u>should not</u>
- <u>A. Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.</u>
Explanation:
Since the project is simply about planting trees and remodeling buildings so as to make the campus more aesthetically pleasing hence for the students of the college, the visual appearance of the campus can be categorized as non-rival and non-excludable. Meaning, anybody can freely benefit from the project.
The benefit of the beautification initiative is $18 since the average willingness to pay is by the students is $18.
We can thus conclude that the estimated benefit is less than the cost since we are told that $7,200 is the entire cost of the initiative, which when compared to be amount to be contributed has a shortfall (300*$18=$5,400∠$7200). Thus, the college administrators should not undertake the beautification initiative.
Answer: $315 million
Explanation:
First find the cost of capital as a required rate of return using CAPM:
= Risk free rate + Beta * (Market return - Risk free rate)
= 6% + 1.25 *(14% - 6%)
= 16%
Value of Luther with leverage:
= (Cash flows with debt / required return) + (Debt * Tax)
= (44 million / 16%) + (100 million * 40%)
= $315 million
<em>Options do not represent value. </em>
Answer:
Cullumber Company depreciation for the year 2022 = $2,375
Journal Entry for 2022
Dr Cr
Depreciation expenses $2,375
Accumulated Depreciation $2,375
Explanation:
annual depreciation on straight line = <u> Cost - slavage value</u>
life span
= ( $48,000 - $10,000)/ 8
= $38,000/8 = $4,750
but the company purchase the asset on July 1 , therefore half year depreciation will be charged = ( 6 * $4,750) / 12 = $2,375