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Blababa [14]
3 years ago
15

Why is management contracting a safe way to get involved in global business?

Business
1 answer:
____ [38]3 years ago
4 0
To increase profits while taking low to no risk as to their current funds<span />
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Thrice Corp. uses no debt. The weighted average cost of capital is 8.4 percent. If the current market value of the equity is $16
In-s [12.5K]

Answer:

$1,369,200

Explanation:

Calculation for EBIT

Using this formula

Value of Equity= EBIT / WACC

Let plug in the formula

$16,300,000 = EBIT / .084

EBIT = .084($16,300,000)

EBIT = $1,369,200

Therefore EBIT is $1,369,200

3 0
3 years ago
In an eight-hour day Nicolas can catch 24 pounds of fish or he can repair 15 cars. In an eight-hour day Alejandro can catch 27 p
Roman55 [17]

Answer:

Explanation:

Here Nicolas will gain comparative advantage only when he is selling the good he is specializing in and he would specialize in that good which would have lower opportunity cost for him. So the first step that we have to do here is to find out for which good Nicolas will have lower opportunity cost.

For Nicolas who in 8 hours can either catch 24 pound of fish or repair 15 cars,

the opportunity cost for catching 1 fish is = 15/24 = .625

the opportunity cost for repairing 1 car is = 24/15 = 1.6

So from the above observation we can say that for Nicolas catching fish has lower opportunity cost for him , so he should specialize in catching fish.

Therefore the term of trade for Nicolas would be

1 fish = .625 cars ,

if he can catch and sell 100 units worth of fish then he would have to give up 62.5 cars and then only he will gain from trade,

1 x 100 fish = .625 x 100

100 fish = 62.5 cars.

8 0
3 years ago
Read 2 more answers
The additional dining space will occupy space next to Olaf’s that was recently rented to a tenant. By claiming the space for the
Illusion [34]

Answer:

$12,146

Explanation:

The computation of present value of this opportunity cost is shown below:-

Net After tax Operating Profit Per month = Rent space per month × Profit margin on the renting the space percentage

= $1,000 × 30%

= $300

Project is for 4 Years

Total months = 4 × 12

= 48 Months

Interest Rate Per month = 9% ÷ 12

= 0.75%

As per the question the Rent is Received at the start of the month

So Present Value of this opportunity cost = $300 (1 + PVAF (0.75%,47))

= $300 × ( 1 + 39.486)

= $12,145.85

= $12,146

3 0
3 years ago
In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a
Tems11 [23]

Answer: d. provide disclosure in the footnotes to the financial statements.

Explanation:

A contingent liability is an obligation that a company might owe in future depending on the outcome of an event such as a law suit.

To record a contingent liability in the books, two conditions must be satisfied;

  1. Loss must be probable
  2. Amount must be estimable

If these two conditions are not satisfied then the contingent liability may simply be disclosed as a footnote in the financial statement. The amount here is not estimable so can be disclosed as a footnote.

6 0
3 years ago
What is the difference between real and nominal gross domestic product. A. Nominal GDP for a given year is measured in dollars o
Genrish500 [490]

Answer:

Option A Nominal GDP for a given year is measured in dollars of that year, whereas real GDP is measured in dollars of some based year

Explanation:

The reason is that the nominal GDP includes the affects of inflation of the year whereas Real GDP is inflation excluded amount which means its tells GDP in terms of base year prices. The difference between the nominal GDP and the real GDP is because of inflation which is the only additional thing in the nominal GDP. So the best answer here which gives this explanation is option A.

7 0
3 years ago
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