Answer:
d. Provides a guarantee of payment from the buyer, reducing the credit risk to the seller
Explanation:
A letter of credit is a document that guarantees a seller of payment from the buyer. It is drafted and issued by a bank assuring the seller of timely and full payment. A letter of credit is applied mostly in international trade where the buyer and seller hardly meet or know each other.
Banks issue a letter a credit against cash or other securities. Should the buyers fail to make payment, a letter of credit assures the seller that the bank will take responsibility for the payment. Banks usually charge a fee for issuing letters of credit.
Answer: $112
Explanation:
The following information can be gotten from the question:
Growth Rate = 5%
Dividend at end of year,D1 = 5.60
Required return, ke = 10%
Then, the current market value will be:
P0 = De/(ke-g)
= 5.60/(10% - 5%)
= 5.60 / 5%
= 5.60/0.05
= $112
Therefore, the current market value of a share of IBM stock is $112.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Rossini Company has budgeted production for next year as follows: Quarter First Second Third FourthUnits to be sold 53,400 80,200 94,000
At the end of each quarter, Rossini would like to have an inventory equal to 10% of the sales units of the next quarter.
Production:
2nd Quarter= 80,200
Ending inventory= (94,000*0.10)= 9,400
Beginning inventory= (80,200*0.10)= 8,020 (-)
Total= 81,580 units
The new equilibrium from the information shows that sugar cane producers in Haiti benefited.
<h3>What is equilibrium?</h3>
It should be noted that equilibrium simply means balance that is when the supply of goods and demand are equal.
In this case, in the situation of free trade, the world price line is a horizontal lines. The fact that the consumers in the United States demanded more sugar cane product means that the sugar cane producers in Haiti benefited.
Learn more about equilibrium on:
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