Read the scenario.

c. Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from wha

liubo4ka [24]

Answer:

The correct answer is II. This argument is in the best interests of the people they represent.

Explanation:

Trade unions in developed countries tend to support trade restrictions, because products made in countries with lower wages are generally cheaper than those made in those developed countries. For example, a pan loaf that costs about 3 dollars in the United States, can cost about 0.75 dollars in Mexico. Therefore, import value, including tariffs, is less than that of national production. This means that, if barriers to trade are not established, many workers lose their jobs due to the fact that national production is terminated due to the possibility of importing said products.

8 0

3 years ago

You purchased 600 shares of SLG, Inc. stock at a price of $41.20 a share. You then purchased put options on your shares with a s

Reika [66]

Answer:

Profit of 3600

Explanation:

I bought the 600 shares at a price of $41.20

so, Cost of buying the shares 24720

Along with it, i also bought the put option in $1.10 with a strike price of $45.

Buying the put option able me to sell the stock in 45 regardless of the price in stock market is.

But at the expiration date, the price of stock is $48.30 (more than strike price of $45)

So, i would not sell my stock to the broker in 45 (strike price) where, i can sell this stock in stock market at $48.30

Selling this stock in 48.30

48.30*600=28980

I must pay the option premium even though i have not utilized the option.

1.10*600=660

Finally,

selling price of shares-cost of buying shares - cost of purchasing premium

28980-24720-660= 3600

5 0

3 years ago

An investor in Treasury securities expects inflation to be 1.6% in Year 1, 3.05% in Year 2, and 3.85% each year thereafter. Assu

mixer [17]

Answer:

The difference between two securities is 0.89%.

Explanation:

Inflation premium for the next three and five years:

Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3

= 2.83%

Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5

= 3.24%

Real risk-free rate = 2.35%

Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:

Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)

6.80% = 2.35% + 2.83% + MRP(3)

MRP (3) = 1.62%

Similarly,

5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)

8.10% = 2.35% + 3.24% + MRP(3)

MRP (5) = 2.51%

Thus,

MRP5 - MRP3 = 2.51% - 1.62%

= 0.89%

Therefore, the difference between two securities is 0.89%.

4 0

3 years ago

Following are summary financial statement data for Nordstrom Inc. for fiscal years ended 2014 through 2016.

Gwar [14]

Answer:

Nordstrom Inc.

a. Return on Assets (ROA) for the fiscal years ended 2019 and 2018:

= Net income/Total Assets

2019 = 7.15%

2018 = 5.39%

b. Profit Margin (PM) for fiscal years ended 2019 and 2018:

= Net income/Sales * 100

2019 = 3.56%

2018 = 2.82%

c. Asset Turnover (AT) for fiscal years ended 2019 and 2018:

= Total Sales / Average Assets

2019 = 1.98x

2018 = 1.94x

Explanation:

a) Data and Calculations:

$ thousands 2019 2018 2017

Sales $15,860 $15,478 $14,757

Net income 564 437 354

Total assets 7,886 8,115 7,858

Average assets 8,001 7,986

Equity 873 977 870

a. Return on Assets (ROA) for the fiscal years ended 2019 and 2018:

= Net income/Total Assets

2019 = $564/$7,886 * 100 = 7.15%

2018 = $437/$8,115 * 100 = 5.39%

b. Profit Margin (PM) for fiscal years ended 2019 and 2018:

= Net income/Sales * 100

2019 = $564/$15,860 * 100 = 3.56%

2018 = $437/$15,478 * 100 = 2.82%

c. Asset Turnover (AT) for fiscal years ended 2019 and 2018:

= Total Sales to Average Assets

2019 = $15,860/$8,001 = 1.98x

2018 = $15,478/$7,986 = 1.94x

b) Return on Assets (ROA) indicates the relative profitability of assets, which indicates the ability of management to generate earnings from the entity's assets.

The Profit Margin (PM) measures the degree to which a dollar-sales is turned into profit.

Asset Turnover (AT) measures the efficiency achieved by the entity in generating sales from its assets.

7 0

3 years ago

Suppose that a government agency is trying to decide between two pollution reduction policy options. Under the permit option, 10

Ksivusya [100]

Answer:

a. the cost of reducing it's existing pollution by one unit.

Explanation:

Marginal cost refers to the addition to total cost when one more unit of output is produced. Marginal cost in the given case would refer to the additional cost incurred for reducing the current pollution level by one unit.

In the given case, a firm is charged $250 for each unit of pollution emitted under the pollution tax option.

It is also stated that all the firms experience increasing marginal costs of pollution reduction.

This means, as additional units of pollution are reduced, the additional costs would go on increasing.

If a firm finds that, reducing 1 unit of pollution from the current level costs it equal or more than $250, it will opt to pay $250 since, for each subsequent unit of pollution reduction, the additional costs would rise.

7 0

3 years ago