I was stuck on the same thing in my class test. I ended up failing but if I get the answers to it I’ll totally send them to you!!!
Answer:
A. Italy has a comparative advantage over the United States in producing wine.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries. A country should specialise in the production of the good for whuch it has comparative advantage in and import goods for which it doesn't have comparative advantage in its production.
If Italy has comparative advantage in the production of wine and the US doesn't, Italy should produce wine and export to the US. While, US should produce pasta and export to Italy, if has a comparative advantage in the production of pasta.
A country has absolute advantage in the production of a good or service if it produces more quantity of the good when compared with other countries.
I hope my answer helps you
Answer:
$33.44
Explanation:
The computation of the intrinsic value of the share is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2.16 + $2.16 × 4.50%
= $2.16 + $0.0972
= $2.2572
The required rate of return is 11.25%
And, the growth rate is 4.50%
So, the intrinsic value is
= ($2.2572) ÷ (11.25% - 4.50)
= $33.44
Answer:
Option E: $40,000 - Cash from sale of Machine
Explanation:
Cash flow from Investing activities section of the cash flow statement should include cash received on the sale of property, plant & equipment, cash paid to acquire property, plant & equipment, cash paid for investments in or as loans to other companies and dividends received from any investments.
In case of sale of a Machine, $40,000 received on sale should be reported as source of cash in the cash flows from investing activities section.
<span>On the off chance that purchasers don't purchase to a lesser extent a decent when their earnings rise, the positive qualities being referred to must be a typical decent. For an ordinary decent, the salary and substitution impacts both suggest that the purchaser will purchase less if the value rises.</span>