Answer:
The correct answer is option c.
Explanation:
Forlornistan is experiencing an economic downturn, the GDP has steadily declined, the employment rate is very low and the CPI is falling.
All these characteristics show that the economy is going through economic depression.
Depression refers to the situation in which an economy suffers a downturn in economic activities. It involves decrease in output level, price and employment rate.
Answer: Occupation or exploitation
Explanation:
Foreign business would find it differently difficult to break into the local market of a particular environment. One of the ways they can break into such market is by exploitation. They have to exploit the market by carrying out extraordinary deeds in what their products offer or how they intend selling their product to the local market they are approaching. They need to be creative with their plan and seek ways to capture the fancy of these market.
Answer:
4%
Explanation:
Solution:
Calculation for the the implied interest rate the investor will earn on the security
Using this formula
Future value = Present Value (1+r)^t
Where,
Future value =$7,300
present value = $6,000
t= period = 5 years
r= interest implied = ??
Let plug in the formula
Future value = Present Value (1+r)^t
$7,300 = $6,000 (1+ r)^5
1+ r = ($7,300/$6,000 )^(1/5)
1+ r = 1.216666666^(1/5)
1+ r = 1.04
r= 1.04-1
r= 0.04*100
r= 4%
Therefore the implied interest rate the investor will earn on the security will be 4%
Answer:
B. Cash, accounts receivable, inventories, prepaid items.
Explanation:
In the balance sheet, assets are presented in an orderly manner guided by the amount of time they take to convert into cash. Assets requiring the shortest time to convert into cash will appear first. Cash will always be on top as it does not require conversion.
Goodwill comes last as the business will have to be sold for it to turn into cash.
- In the list provided, cash will appear first.
- Accounts receivable is money a business expects to receive from customers for goods or services provided. In practice, the money should be received within 60 days
- Inventories in assets refer to finished goods in the store. They are awaiting sales. Inventories will take longer as stocks have to be sold and become account receivable before converting to cash.
- Prepaid items are expenses paid before their due date. They appear in the balance sheet as cash assets because they have not been consumed. The expectation is that they will be utilized within the current year. Converting into cash them will require getting a refund from the recipient of the funds, which could be a lengthy process.
Answer:
2865.09
Explanation:
V0 = #Shares * Price per Share
V0 = 100 * 25.8 = 2580
V1 = Today´s Value
V1 = 2865
Return Year 1 = (V1 - V0) / V0
Return Year 1 = (2865 - 2580)/2580
Return Year 1 = 11.05%
New Investment
Abby's desire is to get the same return of 11.05%. So for the next year her investment should be 2580 * (1 + return) --> 2580 * (1 + 0.1105) = 2865.09.
Remember that we are assuming that the 50 are part of the purchase price and we are assuming that she did not add any money.
