Answer:
<u>Opportunities</u>
Faster and more information
When information is bountiful and disseminated speedily, investors are more confident that the financial system is strong and will be more likely to invest.
Liquidity,
Investors love being able to change their assets to physical money as soon as possible. If this is hard in a country, they will not invest.
Change in government restrictions
When Government restrictions that limit opportunities are lifted, investors come in larger numbers to take advantage of these new opportunities.
<u>Risks </u>
Financial services outside of regulation
Investors would prefer that the law is able to protect their assets and so will shun opportunities outside regulation.
Hot money
If there is too much Hot money going in and out of the economy, investors will be worried that too much money could leave the country at the slightest change in interest rates.
Information gap
Information should be widely available. If it is usually concealed from international partners, this can damage portfolios.
Interrelated international capital market
Independent Capital markets are able to withstand problems going on in other capital markets. When a nation's capital market is too interrelated with others this is risky.
Reducing risk reduction
A nation acting to reduce measures that reduce risk is a red flag. Investors want the least risky asset for a certain amount of return.
Answer:
Allocated MOH= $136,479
Explanation:
Giving the following information:
Estimated that manufacturing overhead for the year= $175,900
Estimated Direct labor hours= 25,900
Actual direct labor hours= 20,100
First, we need to calculate the predetermined overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 175,900/25,900= $6.79 per direct labor hour
Now, we can allocate the overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6.79*20,100= $136,479
Answer:
The payback period in years is closest to;
B). 3.00
Explanation:
<em>Step 1: Determine the total cost of the go-kart</em>
Using the expression;
Total cost=purchase cost+annual depreciation×number of years
where;
purchase cost=$5,100
assume annual depreciation=0
number of years to payback=n
replacing;
Total cost=5,100+(0×n)=5,100
<em>Step 2: Total cash inflows</em>
Total cash inflows=(1,700×n)=1,700 n
<em>Step 3: Determine payback period</em>
Equate total cost to total cash inflows
5,100=1,700 n
n=5,100/1,700
n=3
The payback period in years is closest to 3 years
