In one unit of time, that country cannot produce more of any product than the competing country.
Let Country 1 (C1) produce either 1 of product X or 1 of product Y in 1 day.
Let Country 2 (C2) produce either 2 or product X or 2 of product Y in 1 day.
C1 has the absolute disadvantage in both products because it cannot produce more than C2 in either product at the end of the day.
Answer:
P0 = $66.6429 rounded off to $66.64
Option c is the correct answer
Explanation:
Using the two stage growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula to calculate the price of the stock today is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
- g1 is the initial growth rate
- g2 is the constant growth rate
- r is the required rate of return
P0 = 2* (1+0.2) / (1+0.1) + 2 * (1+0.2)^2 / (1+0.1)^2 + 2 * (1+0.2)^3 / (1+0.1)^3
+ 2 * (1+0.2)^4 / (1+0.1)^4 + 2 * (1+0.2)^5 / (1+0.1)^5 +
[(2 * (1+0.2)^5 * (1+0.04) / (0.1 - 0.04)) / (1+0.1)^5]
P0 = $66.6429 rounded off to $66.64
Answer: Please refer to the explanation section
Explanation:
Loss from operations = $500 000
Loss (sale of assets) = $1000 000 - $800 000 = $200 000
Income from continuing operations after tax = $2000 000, Therefore income from continuing operations before tax is equal to $200 000 x 100/60 = 3 333 333.333
Net Income before tax = 3 333 333.333 - 500 000 - 200 000
Net Income before tax == 2633 333.333
Net Income After Tax = 2633 333.333 x 60/100 = $1580 000
Income Statement
Income from continuing operations 3 333 333.333
Loss from operations - 500 000
Loss from sale of assets <u>- 200 000</u>
Net Income before Tax 2633 333.333
Taxation <u>-1053 333.333</u>
Net Income 1580 000
Answer:
$359,000
Explanation:
Total Bond issue costs can be calculated by adding all the cost related to the issue of bond.
Bond Certificate printing cost = $24,000
Legal fees paid = $90,000
CPA registration = $15,000
Underwriting Commission = $230,000
Total Bond issue costs = $359,000
After adding all the cost we reached at 359,000 and its closest to Option A 360,000
The compound interest has the capacity to capitalize on the interest of the previous period, that is to say that it converts the interest earned in a period into capital for the following one, in this way the formula of the compound interest is:
Where
is the future value or capital that will remain,
the present or initial value,
the interest rate per period and
the number of periods to be capitalized, in this case we have a present value of <em>$2,500</em>, a quarterly rate of <em>7.3%</em> , that is to say <u>4 in a year</u>, as they are 5 years, we obtain <em>4 * 5 = 20</em> periods, with this we calculate

Answer
$<em> </em>10,231.39 will remain in the account