Answer:
(C). Firms engaged in barter run the risk of having to accept goods they do not want or cannot use.
Explanation:
Countertrade is a trade system in which goods and services are exchanged for other goods and services.
Barter is a type of countertrade where money isn't involved. Only goods and services are exchanged between participating parties.
<em>A disadvantage of barter is that, in the absence of required goods, a firm may have to accept the goods the other firm is offering even though it doesn't need or cannot use those goods at that point in time. </em>The firm could resell the goods later.
Answer:
D. National security argument.
Explanation:
Looking at the options, the correct one is National security argument. This is because the congress woman is arguing that ball bearing industry is important in making weapons which is in turn very important to national security. She argues that imposing trade restrictions on free trade, it will make the United States begin to produce their own weapons which will be helpful in time of war when they need a lot of weapons.. Thus, her justification in her argument is primarily for National Security!
Answer:
The correct answer to fill the blank space will be option "C"
Explanation:
The relation between minimum wage and employment depends on the magnitude of the minimum wage relative to wage rate. Seein this we can say that an increase in the legal minimum wage will bring up the employment rate if it is set bellow the wage rate.
Answer:
After-tax cost of debt is 7.2%
Explanation:
Given:
Coupon rate = 6% or 0.06 per annum.
Semi- annual coupon rate = 0.06÷2 = 0.03
Par value is 1,000
Coupon payment = 0.03×1000 = $30
Time period = 30×2= 60 semi-annual periods
Bond price = $515.16
Pre-tax cost of debt can be computed using excel function 'RATE'
=RATE(nper,PMT,PV,FV)
nper is 60; PMT is 30; PV is -515.16 (cash outflow); FV is 1000
Rate is 6%
Calculation is shown in attached excel snip.
Yield to maturity = 6×2 = 12%
Federal tax rate is 40% or 0.4
After-tax cost of debt = 0.12 (1-0.4)
= 0.072 or 7.2%