Answer:
The internet has radically affected international business.
Explanation:
First, the internet has made it easier for firms to engage in international business and trade because it reduces barriers to entry, facilitates communications, and becomes a vehicle for the creation of new economic sectors.
Second, the internet has made competition between companies more stiff in some sectors, but has resulted in the formation of oligopolies, duopolies, and even monopolies in other sectors, especially those that are very intensive in all kinds of capital, from human capital to technological capital, to financial capital.
Third, the internet has made the concept of appropriability more important because intellectual property has gained more importance, and also because the internet has made it easier to engange in intellectual property theft.
Finally, managers can protect the proprietary technology of their firms by using the most advanced tools of virtual security and protection, this is why many computer scientists are hired in this sector.
Answer:
$30,300 and $384,000
Explanation:
The computation of the gain and the amount should acquired is shown below;
The gain is
= Fair value - undepreciable cost
= $492,000 - $461,700
= $30,300
And, the amount at which the computed should be recorded is equivalent to the fair value i..e $384,000
The same is considered and relevant
Answer:
Risk-free rate (Rf) = 8%
Return on market portfolio (Rm) = 15%
Beta (β) = 1.2
Ke = Rf + β(Rm - Rf)
Ke = 8 + 1.2(15 - 8)
Ke = 8 + 1.2(7)
Ke = 8 + 8.4
Ke = 16.40%
Earnings per share (EPS) = $10
Current dividend paid (Do) = 40% x $10 = $4
Retention rate (b) = &6/$10 x 100 = 60% = 0.6
ROE (r) = 20% = 0.2
Growth rate (g) = b x r
= 0.6 x 0.2
= 0.12 = 12%
Current market price (Po)
= Do<u>(1 + g) </u>
Ke - g
= $4<u>(1 + 0.12)</u>
0.1640 - 0.12
= $4<u>(1.12)</u>
0.044
= $101.82
Explanation:
First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).
Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.
D. Price ceiling
This is a government regulation that establishes a maximum price for a specific thing.
Answer: C. private benefits of regulation to DIs.
Explanation:
Private benefits are those that the parties involved in a transaction experience. The Government insuring deposits in Deposit Institutions (DIs) is as a result of regulation of those same DIs.
A private benefit to DIs is that the cost of deposit funds has been reduced because the Government now insures the deposits directly so banks do not have to significantly account for such anymore.
