Answer:
the present value of its growth opportunities (PVGO) is $0.56
Explanation:
The computation of the present value of growth opportunities is shown below:
= Price per share - (Earnings ÷ required rate of return)
= $41 - ($3.64 ÷ 9%)
= $41 - $40.44
= $0.56
hence, the present value of its growth opportunities (PVGO) is $0.56
We simply applied the above formula so that the correct value could come
And, the same is to be considered
<span>If some activity creates positive externalities as well as private benefits, then economic theory suggests that the activity ought to be: </span>subsidized
Answer: It concerns international trade.
Explanation:
A nation's production possibilities curve shows the set of goods produced in a given economy and the trade off in production in an environment of resource scarcity. Thus, to produce a particular good, the curve shows that countries must stop producing one good to produce another good. In this case, it would take 10,000 pizzas to produce 1 robot. However, through specialization, countries can specialize in producing goods in which they are most productive and, with international trade, exchange them. This theory is called the theory of absolute advantages, where each country specializes in what is most productive and, through international trade, exchanges, decreasing the opportunity cost of obtaining goods and increasing the possible combinations in the production possibilities curve. . In the example described, if the robot were produced in another country, it would only have to exchange 9,000 pizzas for 1 robot.
Answer:
188,000 units
Explanation:
For computing the equivalent units for material cost, first we have to compute the transferred units which is shown below:
= Beginning finished good inventory units + units started and completed units
= 31,000 units + 130,000 units
= 161,000 units
Now the equivalent units for material costs equal to
= Transferred units × percentage of completion + additional units in process × percentage of completion
= 161,000 units × 100% + 27,000 units ×60%
= 161,000 units + 27,000 units
= 188,000 units
