What are the relative merits of three trade agreements and alliances? WTO governs international trade. NAFTA is with North America. EU is Europe's trading bloc.
Trade agreements are essentially pacts between various countries that allow of trade between them. The trade is constructed and based on setting up tax, tariff and treaty agreements that allow for the participants to have investments within the trade. Two or more countries participate on the terms of their trade agreements which allows them to trade with one another.
Answer:
7.83%
Explanation:
This is calculated by using the Gordon growth model (GGM) formula as follows: P = d / (r - g) ……………………………………… (1)
Where;
P = market price of the stock = $24.09
d = next year annual dividend = $1.26 r = cost of equity = ?
g = dividend growth rate = 2.6%, or 0.026
Substituting the values into equation and solve for r, we have:
24.09 = 1.26 / (r - 0.026)
24.09 (r - 0.026) = 1.26
24.09r - 0.62634 = 1.26
24.09r = 1.26 + 0.62634
24.09r = 1.88634
r = 1.88634 / 24.09
r = 0.0783038605230386, or 7.83038605230386%
Rounding to 2 decimal places. we have:
r = 7.83%
Therefore, the correct option is 7.83 percent.
Answer:
$100 favorable
Explanation:
The computation of the material purchase price variance is shown below:
= Actual Quantity purchased × (Standard Price - Actual Price)
= 2,000 pounds × ($1.60 - $1.55)
= 2,000 pounds × $0.05
= $100 favorable
Simply we took the difference between the standard and the actual price, and then multiply it by the actual quantity purchased
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