Answer:
1) Value of supply
2) Value of demand
Explanation:
hope this helps :( let me know if i got it right
Answer:
Explanation:
What is given:
The price of a new fabricating machine - 60
The price of a one-year-old machine - 51
The real interest rate is 10% per year
Marginal product of fabricating machines 165-2K (K - desired number machines)
If calculate the depreciation, (60-51)/51 = 15%
a) Find user cost of capital
User cost of capital is the sum of interest rate and depreciation cost multiplied by the price of new machine
= 60*(0.10+0.15) = 15 units
b) Determine the number of machines that will allow Missing Link to maximize its profit
165-2K=15
2K = 150
K = 75 machines
c)
Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company?
165-2K = 15/(1-0.4)
165-2K=14/0.6
165-2K=25
2K=140
K=70 macines
Answer:
Primary reasons a company would decide to expand internationally are as follows:
- Expanding markets and increasing sales are one of the primary reasons.
- Companies get globalized in order to become a market leader.
- The company may choose to enter into international market in order to diversify a company's product line.
- Markets and investments would be protected by companies once they enter into international market and get engaged in an international business.
- Controlling the expenses is again one of the most important reasons. Company would buy the resources to gain cost advantage.
- For example, the company which is located in Canada gets most of their resources from China; the company would look forward to get situated near China.
- Another reason would be, to get protected from their competitors or to gain advantage over them; the company would decide to expand internationally.
The three motivational factors that induce a company to go global are as follows:
- Economies of Scale — The advantage that a company gain through mass production to achieve the lowest possible production cost per unit.
- Economies of scope — The advantage that a firm gains by producing different varieties of products and services and at different regions.
- Low-Cost Production Factors — It is an opportunity to purchase the resources at the lower possible cost.
Jaguar Land Rover decided to manufacture cars outside the UK for the first time. In recent years, it has rapidly expanded in its home UK and the company is planning to go to Brazil and implement the strategies that they had implemented in India.
Jaguar Land Rover moves to other countries to gain the opportunity of producing at a lower price and to gain economies of scale.
Answer:
ROA = 6.6%
ROE 14.52%
Explanation:
profit margin = net income / sale = 12%
assets turn over = sales / assets = 0.55
equity mutiplier = assets / equity = 2.2
ROE = return on equity = net income / equity
ROA = return on equity = net income / assets
we use the fraction properties to get ROE and ROA
ROA = 6.6%
We apply the same property to get ROE
ROE = 14.52%
