By dropping production costs, subsidies aid domestic manufacturers strive in contrast to foreign imports and attainment export markets. Subsidies proceeds many forms as well as cash grants, low interest loans, tax breaks and government equity contribution in domestic companies. Government subsidies should be paid for or usually by taxing people and businesses. The biggest protectors of the agricultural subsidies are the industrialized nations of the world and the consequence of subsidies is subsidies protect inefficient domestic producers. Conferring to the strategic trade policy, subsidies can assist a company to attain a first mover benefit in an developing industry. Non-tariff obstructions which comprise of subsidies, quotas, voluntary export restraints and anti dumping duties.
Answer:
Explanation:
Let's first determine the free cash flow of the firm
Particulars Years
1 2 3
EBIT 540 680 750
<u>Tax at 36% (0.36*540) (0.36*680) (0.36*750) </u>
Less: 345.6 435.2 480
Net Capital -
Spending 150 170 190
<u>Change in NWC 70 75 80 </u>
Less: 125.6 190.2 210
The terminal value at the end of T =(3 years) is:



= 2011.26
Finally, the value of the firm can be computed as follows:
Years Free Cash Flow PVIF PV
1 125.6 0.6589 107.88
2 190.2 0.7377 140.31
3 210 0.6336 133.06
<u>Terminal Value 2011.26 0.6336 1294.33 </u>
<u>Value of the firm ⇒ $1655.58</u>
Answer: A. True
Explanation: If he were inexperienced in this field or he was doing it as his hobby (casual objectives) with no goal to reproduce or add to the data already published, or were there people involved in his research, then this would have been categorized as informal research. However this setting is strictly formal, and authenticity of data is mandatory. Print and online journal articles contain the case studies already researched thoroughly.
A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.
Present Yearly Net operating income (loss)
(Units * CM Per unit)-Fixed cost
Units Sales 415000|
[Selling Price Per Unit 70
\Variabel Expense Per unit 40|
Fixed Expenses 540000]
Compute the CM ratio
Selling Price Per Unit 70.00
Variable Expense Per unit 40.00
Contribution Margin per unit ( Selling Price - Variable Cost) 30.00
Ico Ratio =( CM/Selling Price) 42.857%
Learn more about the company here
brainly.com/question/24553900
#SPJ4