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ruslelena [56]
3 years ago
12

For each of the following transactions, identify it as a financial capital inflow or financial capital outflow in the United Sta

tes Balance of Payments. Also, determine if the transaction is in the Current or Financial Account.
a. The U.S. exports cars to be sold in Canada.
b. Pepsi buys a factory in Mexico.
c. A Brazilian company buys an apartment building in Boston.
d. The central bank of China purchases a U.S. Treasury Bond.
f. A businessman is paid dividends on the stock from a foreign corporation that he owns.
Business
1 answer:
Alexxandr [17]3 years ago
5 0

Answer: See explanation

Explanation:

The balance of payment show tge transactions that occur between a country and another country.

a. The U.S. exports cars to be sold in Canada.

This is a financial capital inflow and the transaction is in the current account.

b. Pepsi buys a factory in Mexico.

This is a financial capital outflow and the transaction is in the financial account.

c. A Brazilian company buys an apartment building in Boston.

This is a financial capital inflow and the transaction is in the current account.

d. The central bank of China purchases a U.S. Treasury Bond.

This is a financial capital inflow and the transaction is in the financial account.

e. A businessman is paid dividends on the stock from a foreign corporation that he owns.

This is a financial capital inflow and the transaction is in the financial account.

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Answer:

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Explanation:

<u>procedure 1:</u>

we can determine the present value of the stock using the following formula:

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future value = future dividend / (required rate of return - constant growth rate)

$50 = future dividend / (18% - 13%)

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now we must determine the dividend for the current year:

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now we apply the Gordon growth model:

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present value = $2.21 / (18% - 13%) = $2.21 / 5% = $44.25

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On October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity accordi
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Answer: $2,500,000

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With regards to the above question, the before-tax amount that Mercedes should report as loss on discontinued operations in its 2013 income statement will be:

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Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production fa
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Answer:

Given,

Annual demand, D = 12500,

Setting up cost, S = $ 49,

Production rate per year, P =  production facility × capability of production = 300 × 105 = 31500,

Holding cost per year, H = $ 0.15,

Hence,

(i) Optimal size of the production run,

Q = \sqrt{\frac{2DS}{H(1-\frac{D}{P})}}=\sqrt{\frac{2\times 12500\times 49}{0.15(1-\frac{12500}{31500})}}=3679.60238126\approx 3680

(ii) Average holding cost per year,

=\frac{QH}{2}(1-\frac{D}{P})

=\frac{3680\times 0.15}{2}(1-\frac{12500}{31500})

=166.476190476

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(iii) Average setup cost per year,

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(iv) Total cost per year = average setup cost per year + average holding cost per year + cost to purchase 12500 lights

= 166.44 + 166.48 + 12500(0.95)

= $ 12207.92

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