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navik [9.2K]
3 years ago
14

Why do we use trade barriers? What is the purpose?

Business
1 answer:
vladimir1956 [14]3 years ago
4 0

Reasons For Using Trade Barriers.  As for protecting domestic producers, some countries use trade barriers is to protect immature domestic producers and industries that cannot effectively compete with foreign products. Trade barriers makes imported goods and products less attractive than locally produced goods.                                                                                                                    

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Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme
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PE and Terminal Stock Price [LO2] In practice, a common way to value a share of stock when a company pays dividends is to value
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$150.15

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Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

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b. the stock price today can be found by finding the present value of the dividends

Present value can be found using a financial calculator

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Dividend in year 1 =  $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 =  $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

Stock price in year 5 = $150.15

i = 12%

Stock price (present value) = $92.31

To find the PV using a financial calculator:

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2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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