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puteri [66]
4 years ago
7

TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically.

Suppose that in the United States, a TV set sells for $500 and that 80% of the TV set's value comes from the value of the imported components. The United States imposes a 30% tariff on TV sets and a 10% tariff on the TV set's components. Assume that costs of producing components are the same in the United States a Taiwan. Based on the information provided, the effective rate of protection that TeleGlobal receives from the tariff is:__________.
a. -17.5%
b. 70.0%
c. 110.0%
d. 24.4%
e. 47.5%
Business
1 answer:
vichka [17]4 years ago
3 0

Answer:

The right choice is Option c (110.0%).

Explanation:

⇒ Effective \ rate \ of \ protection = tariff \ rate \ on \ imported \ finished \ good + price \ of \ Component\times  \frac{(tariff \ on \ imported \ good- tariff \ on \ imported \ component)}{(Price \ of \ finished \ good - Price \ of \ components)}

On estimating the values, we get

⇒                                   = 30 \ percent + (80 \ percent\times 500)\times \frac{(30 \ percent - 10 \ percent)}{500-80 \ percent\times 500}

⇒                                   = 110 \ percent

Note: percent = %

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Best Ever Toys just paid its annual dividend of $1.78 per share. The required return is 10.6 percent and the dividend growth rat
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From the question given, we are informed that Best Ever Toys just paid its annual dividend of $1.78 per share and that the required return is 10.6% and the dividend growth rate is 1.23%, then the expected value of this stock five years from now will be:

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