Answer:
Freecia has a comparative advantage in producing memory chips
Explanation:
Comparative advantage occurs when a company has an advantage over the other through the production of certain goods at a cheaper rate.
Looking at the given example , let us assume that the cost of producing a bushel of rice is $10 and memory chips is $10
Warmia produces two bushels of rice at $70 and a memory chip at $70(ratio 2:1) 1/3*70= 23.3
Freecia produces five bushels of rice at $70 and two memory chips at $7
(Ratio 5:2). 2/7*70=14
We can see that the cost of producing memory chips is cheaper fo Freecia
Answer:
$1.30
Explanation:
The valuation of TJ's = price per share * number of shares in issue
= $16.70 * 2,500 shares = $41,750.
Corner Grocery offer for TJ's of $45,000, and obviously a premium over the market value of TJ's at $41,750.
The price per share of Corner Grocery's offer = 
= $18 per share.
That is, offer value divided by the number of shares to be acquired.
Therefore, merger premium per share = offer price, less market price
= $18 - $16.70.
= $1.30
Answer:
Marie est allee chez le medecin
Answer:
The company’s systemic risk level (beta coefficient) is 2.44%
Explanation:
According to Capm Expected Return of Stock = Risk Free Rate + Beta*(Market Return - Risk Free Rate)
Beta = (Expected Return of Stock - Risk freed Rate)/(Market return -Risk free Rate)
= (12.5% - 1.5%)/(6% - 1.5%)
=2.44
%
Therefore, The company’s systemic risk level (beta coefficient) is 2.44%
Systematic risk is the risk which affects all the stocks of the economy. It cannot be diversified away. Example interest rate and inflation in the economy. Beta represents systematic risk of the company.
