<span>It would be: $3 million ($10 million in cost less $7 million in payment)</span>
managers can choose between three possible global ______, which range from selling the same product to introducing an entirely new product
They could end up financing them too much and need to borrow more money from China (we are very much in debt right now) nd then we would have more to pay
Answer: (a) Retained earnings = Equity.
(b) Sales = Revenues.
(c) Additional paid-in capital = Equity.
(d) Inventory = Assets.
(e) Depreciation = Expenses.
(f) Loss on sale of equipment = Losses.
(g) Interest payable = Liability.
(h) Dividends = Dividends payable are a liability. Dividends paid are a decrease in the accumulated results of the company as they are distributed to the owners.
(i) Gain on sale of investment = Gains.
(j) Issuance of common stock = are investments by the owners that become part of the capital.
Choice (b) is correct. Market efficiency entails unpredictable stock prices in the market. Since there is a higher risk of investment losses in an unpredictable stock prices change, the best investment strategy is to diversify portfolio so as to minimize loss on the other stock while maximizing gain from another.
