Answer: B. It may help a firm achieve experience curve and location economies
Explanation: Exporting is defined as the act of conveying or sending commodities abroad or to another country, in the course of commerce. Exporting provides a distinct advantage to firms in that it helps them achieve experience curve (which posits that the more experience a business has in the production of product, the lower its costs in producing the product) and location economies (the production of a good or product under the most optimum settings that confers an added advantage in cost of productions over their competitors).
Answer: the correct answer is B. Tax depreciation for the period exceeds book depreciation.
Answer:
$10.28
Explanation:
<u>Step 1. Firstly we use the of the The dividend discount model (DDM)</u>
This calculation is: D1 = D0 x (1 + g)
D1 = $0.72 x (1 + 2.8%) = $0.74.
Where
Do = Dividend now
D1 = Dividend in year 1
g = growth
<u>Step 2 Next, using the Gordon Growth Model, </u>
Price per share is found to be D(1) / (r - g)
Price = $0.74 / ( 10% - 2.8%) = $10.28
where:
Do = Dividend now
D1 = Dividend in year 1
g = growth
r = required return
Answer:
The stockholders' equity is $6,90,000.
Explanation:
<u>Calculating the Total stockholders' equity:</u>
Total stockholders equity = Beginning stock equity + Net income
Total stockholders equity = (31,000 * 20) + 70,000
Total stockholders equity = 6,20,000 + 70,000
Total stockholders equity = $6,90,000
