Answer:
False
Explanation:
When <u>a multinational organization owns and controls productive assets in foreign countries through investment</u>, it is known as Foreign Direct Investment (FDI) and NOT relative efficiency of production.
FDI may be carried out through mergers and acquisitions, joint ventures and building facilities in other countries.
Answer:
11.7%
Explanation:
The common stock of a shaky building has a beta of 22%
The market risk premium is 9.56%
The US treasury bill is 3.3 %
Therefore the cost of equity can be calculated as follows
= 3.3/100 + (1+22/100)(9.56)
= 0.033 + (1+0.22)(9.56)
= 0.033 + 1.22×9.56
= 0.033 + 11.6632
= 11.7%
Answer:
A. An individual nearing retirement age
Explanation:
An individual who is investing more money in bonds and less in stocks is known to be practicing a conservative investing.This is the best strategy for an individual nearing retirement because he/ she does not have much time to ride the stock market downturns. Therefore, being conservative with his/her investment would provide more financial stability.On the other hand, younger people like those in their teens and twenties have a longer investment horizon and can therefore ride the downturns.
Answer and Explanation:
The preparation of the Incremental cost analysis is presented below:
<u>Particulars Product A Purchase</u>
Sales $13.50 $11.90
less: cost
Avoidable cost $5
Unavoidable cost $5 $5
Purchase cost $5
Net income $3.50 $1.90
Since the net income is higher in the manfufacture so the company should continue with manfuacture the product A
