The domestic variety is cheaper because there is no import duties or no charges imposed on it because of the import from other countries.
<u>Explanation:</u>
A country produces a lot of goods and services in it's own economy using the resources which are present in it's own country. But the goods and the services that are not available in the country but are demanded by the citizens of the country are imported from other countries.
When these goods and services are imported from other countries then there is an imposition of duties or taxes on those goods making the charges of those goods high. With the transportation of the goods from one country to the other, then also some cost is imposed on the good. This increases the cost or the price of the good.
Answer:
making loans to the government
Answer:
ABC company
Explanation:
Basically there are two markets i.e primary market and the secondary market.
The primary market is the market in which the initial public offer is taking place that means the new security is first offered to the public by the company whereas, in the secondary market, the broker or investor is involved while offering the securities.
In the given situation, the ABC company itself is involved while selling the shares of ABC stock in the primary market
Answer:
The current stock price is $21.54
Explanation:
The current price of the share of Knightmare Inc is the present value of all future cash flows receivable from owning stake in the company.
The future cash flows in this sense are the dividends payable by the company in years 1,2 and 3 which are $6.15,$9.05 and $12.25 per share respectively.
The discount factor in this case is given as 1/(1+r)^N where r is the required rate of return of 11.7% and the relevant year of dividend receipt,hence the share price is computed thus:
Year cash flow discount factor PV
1 $6.15 1/(1+11.7%)^1=0.89525 $5.5
2 $9.05 1/(1+11.7%)^2=0.80148 $7,25
3 $12.25 1/(1+11.7%)^3=0.71753 $8.79
Total present value $21.54