Which of the following goods would be considered an elastic in demand?

ABC company uses the equity method to account for its 40% interestt in voting stock of XYZ company. ABC paid $5,000,000 for inve

frutty [35]

Answer:

the end of year book value would be $5,160,000.

Explanation:

given data

equity method to account = 40%

ABC paid investment = $5,000,000

total book value = $6,000,000

solution

when there are more than 20% stake in other company

than we apply equity method

so here we use

Amount of investment = $5,000,000

Share in net incom (600,000 x 40%) = $240,000

Share in the dividend (200,000 x 40%) = -$80,000

Book value at the end of the year = $5,160,000

So the end of year book value would be $5,160,000.

3 0

3 years ago

Determine which are risks that discourage international investing and which are opportunities.

andrey2020 [161]

Answer:

Opportunities

Faster and more information

When information is bountiful and disseminated speedily, investors are more confident that the financial system is strong and will be more likely to invest.

Liquidity,

Investors love being able to change their assets to physical money as soon as possible. If this is hard in a country, they will not invest.

Change in government restrictions

When Government restrictions that limit opportunities are lifted, investors come in larger numbers to take advantage of these new opportunities.

Risks

Financial services outside of regulation

Investors would prefer that the law is able to protect their assets and so will shun opportunities outside regulation.

Hot money

If there is too much Hot money going in and out of the economy, investors will be worried that too much money could leave the country at the slightest change in interest rates.

Information gap

Information should be widely available. If it is usually concealed from international partners, this can damage portfolios.

Interrelated international capital market

Independent Capital markets are able to withstand problems going on in other capital markets. When a nation's capital market is too interrelated with others this is risky.

Reducing risk reduction

A nation acting to reduce measures that reduce risk is a red flag. Investors want the least risky asset for a certain amount of return.

3 0

3 years ago

Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2019. Straight Industries signed a not

Damm [24]

Answer:

$30,604

Explanation:

The computation of the interest expense for the year 2020 is as follows:

2019 interest expense is

= Equipment amount × rate of interest

= $311,967 × 9%

= $28,077

The Dec 31 2019 liability of book value is

= $311,967 + $28,077

= $340,044

Now the interest expense for the year 2020 is

= $340,044 × 0.09

= $30,604

3 0

3 years ago

Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. So

Flura [38]

Answer:

A) rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.

Explanation:

One of economics basic premises is that human beings are rational and act on self interest. That describes both the behavior of consumers who will always try to maximize their benefits at the lowest possible cost, and entrepreneurs like Alex who will try to increase their wealth by identifying and satisfying other people's needs and wants.

6 0

3 years ago

In the fourth stage of rational decision making, managers will _____. evaluate the alternatives and select a solution implement

Ludmilka [50]

Answer:

The correct answer is: implement and evaluate the chosen solution.

Explanation:

Companies generally use different strategies to make decisions to obtain the best benefits. For example, companies often use the rational decision-making process to focus on analysis and logic, leaving subjectivity aside.

Through this method, different steps of the decision-making method are followed to achieve the objectives proposed objectively.

For example, in the fourth step, the chosen solution must be implemented and evaluated, the managers are in charge of analyzing and executing the action plan, in this way they evaluate each result obtained to know if the actions taken are the best and are reaching their goals.

I hope this information can help you.

6 0

3 years ago