Answer:
Read the explanation below.
Explanation:
A. Luxury yatch: Not a lot of people buy Yactchs, but a lot of businesses are capable of making them. So more or less the buyer is in position to dictate terms. And asking the buyer to open a letter of credit may result in the loss of sale.
But to protect against the risk of losing payment, the seller can opt for export credit insurance. Here on advantage of export credit insurance is the exporter is more likely to make the sale in a competitive market such as this. If there is a default, the insurance should cushion the blow. However, Canada and California are not known for opaque or radically different legal systems, are not far away, and do not have linguistic or other barriers. In the event of default, the yatch is likely to be returned.
b. Machine tools. Again, one advantage is that the new yorker exporter is more likely to make the sale. The exporter's position however is strong due to the fact not lot of people make machine tools as the are hard to make and have a higher fixed costs.
Thus, letter credit is the most viable option in this case.
When the required rate of return for such stocks is 20 percent, the current price of the stock is 15.63.
<h3>What is stock?</h3>
Stock in finance refers to all of the shares that make up a corporation's or company's ownership. A single share of stock represents fractional ownership of the corporation based on the total number of shares. A stock is a broad term that refers to any company's ownership certificates.
The price will be calculated thus:
D1 = 1.25
D2 = 1.25 × (11+.40)
D3 = 1.25 × (1+.40) × (1+.20)
D4 = 1.25 × (1+.40) × (1+.20)^2
P4 = 1.25 × (1+.40) × (1+.20)^2 × (1+.08)/(.20 - .08)
Note that d is the dividend.
Current Stock Price = 1.25/(1+.20)^1 + 1.25*(1+.40)/(1+.20)^2 + 1.25*(1+.40)*(1+.20)/(1+.20)^3 + 1.25*(1+.40)*(1+.20)^2/(1+.20)^4 + 1.25*(1+.40)*(1+.20)^2*(1+.08)/(.20 - .08)*(1+.20)^4 = 15.625 or 15.63
Therefore, the current price is 15.63.
Learn more about stock on:
brainly.com/question/25818989
#SPJ1
The tutor and students. a computer system is a medium it's about business ethics class
Answer:
What are the potential advantages and disadvantages of communicating customer satisfaction results to one group versus another group?
Explanation:
The answer above would be the most appropriate question because Larry does not know whether to share it with the employees, with senior management, or with the whole company.
Larry should try to gauge what kind of effect in the company would produce each one of this three alternatives. For example, sharing the information only with the employees might not seat well with managers, while the sharing the information only with management may be more effective but less transparent.