Answer:
Correct option is 6.59
Explanation:
Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:
= $6.59
Therefore, Stock's price in the beginning of the year is $6.59.
Answer: b. Foreign direct investment.
Explanation: This is when a firm or business owns more than 10% of a a foreign company.
A foreign direct investment can be made by getting a lasting interest or by expanding one’s business or company into a foreign country.
The lasting interest makes Foreign Direct Investment from foreign portfolio investments, where investors passively hold securities from a foreign country.
Answer:
Answer to this is both option (i) and option (iii).
Explanation:
Change in technology generally affects the change in productivity as well as the change in labor demand. In the case of Labor-augmenting (improving) technology, it is found that the positive change in technology leads to the increasing marginal productivity of labor. This increase of marginal productivity of labor shifts the labor-demand curve towards right. Thus, Labor-augmenting (improving) technology causes marginal productivity of labor to increase which further leads to shifting of the labor-demand curve towards right.
Answer:
Mergers and acquisitions consist of either joining two or more firms, or having one firm acquire another firm.
The rationale behind a merger or acquisiton is always strategic: a merger or an acquisition is carried out with the goal of improving the economic position and performance of the firms involved.
Some business strategies that can be implemented by a merger or acquisition are:
- Horizontal integration: companies that sell similar products merge in order to join forces and expand their market reach.
- Vertical integration: companies in the same industry, but that sell different products (for example, one company sells cars and the other sells bikes) merge in order to expand their market share.
- Conglomerate formation: companies in different industries join in order to expand their markets even more.
