Answer:
a. NAV = 8 per share
b. 250.000 shares
c. 7.95
Explanation:
a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share
b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.
c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.
New NAV = $7,950,000 /1m = $7.95
Answer:
No, the second car shouldn't be purchased.
Explanation:
After buying the first car, when second car is to be brought the marginal benefit is lower than marginal cost. So, only one car should be brought.
The first step in making a choice is to define the issue at hand. When making judgments, related costs and benefits should be evaluated. When making judgments, extraneous costs and advantages should be overlooked.
The mutual benefit that the American Clothing Company derives by partnering with a Chinese Manufacturer comes because <u>E. It is</u> an example of counter-trading ...
<h3>What is Counter-trading?</h3>
Counter-trading occurs when goods or services are exchanged for other goods or services rather than for hard currency. It is a reciprocal form of international trade in which, for example, the American Clothing Company brings in its technology while the Chinese Manufacturer provides cheap labor and other resources.
<h3>Answer Options:</h3>
A. It is a strategic alliance in which two countries share the risks and rewards of starting a new enterprise together in a foreign country.
B. It is a wholly owned subsidiary in which a foreign subsidiary is totally owned and controlled by an organization.
C. It is a greenfield venture in which owning the organization has been built from scratch.
D. It is an example of a franchise in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company’s brand name and a package of materials and services.
E. It is an example of counter-trading in which the country is bartering for goods.
Thus, the counter-trade between these companies is mutually beneficial because of <u>Option E</u>.
Learn more about counter-trading at brainly.com/question/14659049
