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:
Price of the stock today = $82.35
Explanation:
Note: See the attached file for the calculation of present values for year 1 to 8 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $2.50
Total of dividends from year 1 to year 8 = $23.46345631521910
Year 8 dividend = 8.77863318950395
Therefore, we have:
Year 9 dividend = Year 8 dividend * (100% + Dividend growth rate in year 9) = 8.77863318950395 * (100% + 7%) = 9.39313751276923
Price at year 8 = Year 9 dividend / (Rate of return - Perpetual dividend growth rate) = 9.39313751276923 / (13% - 7%) = $156.552291879487
PV of price at year 8 = Price at year 8 / (100% + Required return)^Number of years = $156.552291879487 / (100% + 13%)^8 = $58.88868846568915
Price of the stock today = Total of dividends from year 1 to year 8 + PV of price at year 8 = $23.46345631521910 + $58.88868846568915 = $82.35
Answer:
1. higher in Country A
Explanation:
Given: Gross domestic product (GDP)= $440 billion.
Country A has 100 million people.
Country B has 175 million people.
Real Gross Domestic Product (GDP): It is defined as the entire output produced annually that includes factors such as inflation and is adjusted for price changes.
Per capita real Gross Domestic Product (GDP): It gives the annual salary for the country and shows the quality of living.
Now calculating per capita real Gross Domestic Product (GDP) for both the countries.
Formula; Per capita GDP= 
<u>Country A</u>
⇒ Per capita GDP= 
We know one billion= 1000 million.
⇒ Per capita GDP= 
∴ Per capita GDP= 
<u>Country B</u>
⇒ Per capita GDP= 
∴ Per capita GDP= 
Hence, comparing both Per capita GDP of country A and B will get Country A have higher per capita GDP.
Answer:
e) Credit to Revenue
Explanation:
The services provided to customers will be an increase of revenue and an increase in revenues is a credit transaction.
Since the question does not mention that the services were billed therefore the accounts receivable will not be increased till it is billed and thus option a) is not applicable.
The other options are not relevant since there is no cash collection involved, and no liabilities involved.
