Answer:
Water freight is a very important method of transportation and is the second cheapest (railroad is the cheapest). Huge volumes can be shipped at relatively low prices which is extremely important for raw materials and commodities.
The problem with water freight is that it is relatively slow though. Another problem that water freight faces is that it is cheap for medium and long distances, but uneconomical for short ones.
A great impediment for the technological progress of water freight is that most ports are obsolete and have not been updated in many years. Updating them is very expensive and many of them are public ports which doesn't help either.
Most new carrier ships (which are very high tech) are probably too big to fit into most US ports, so even if a carrier company invests huge amounts of money in them, where will they them? Technological progress must start with the ports, then water carriers should improve.
Another problem is that regulation is very loose in the US, especially regarding maritime ports.
The appropriate response is differentiation positioning. Differentiation positioning includes looking for a less aggressive, littler market specialty in which to find a brand. Situating and separation are firmly related promoting methodologies. Situating is your procedure for passing on what makes your organization or items greater, diverse or superior to those offered by contenders.
The answer to the question mentioned above is the "ECONOMIES OF SCALE". JBS automobiles, a global firm builds factories to serve more than one country and lower the MNE's production costs. JBX automobiles most likely benefit from "Economies of Scale".
<span>If several years ago, the Jakob company sold a $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually, then the after-tax cost of debt of the firm will be 4.65%.</span>
Answer:
Yield to maturity is 1.51%
Explanation:
Zero Coupon rate does not offer any coupon payment and it is issued at deep discount value.
Face value = F = $100
Price = P = $98.50
Year to mature = n = 1 year
Yield to maturity = ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = ( $100 - $98.5 ) / 1 ] / [ ( $100 + $98.5 ) / 2 ]
Yield to maturity = $1.5 / 99.25
Yield to maturity = 0.0151
Yield to maturity = 1.51%
