Answer:
i) $21 billion
ii) $0
iii) $0
Explanation:
GIVEN DATA : ( two countries )
At the end of year 2
net exports = $20 billion for Japan
Interest earned from assets = $1 billion for Japan
i) The balances for the current account for Japan
export value + interest earned from assets
= $20 billion + $1 billion = $21 billion
ii) Financial account for Japan
Financial account for Japan will be zero because there is no increase or decrease in number of its assets within the given period
iii) capital account for Japan
Capital account of Japan will will have a zero balance. this is because Capital account is used to record foreign investments, local investment and the reserve account as well. and there was no investment captured within the given time that was made by Japan
Answer: To be for real I dont know?????? Sorry:(
Explanation:
All of the above. If it's just one it would be D.
Answer:
$22,592,593
Explanation:
For the computation of maximum initial cost first we need to follow some steps which are shown below:-
Let equity be 1 so debt = 1 × 0.80
= 0.80
weight of debt = 0.80 ÷ 1.8
= 0.44444
weight of equity = 1 ÷ 1.8
= 0.55556
Now
Cost of capital = (After tax cost of debt × Weight of debt) + (Cost of equity × Weight of equity)
= (5.1 × 0.44444) + (12.3 × 0.55556)
= 2.266644 + 6.833388
= 9.10 %
And,
Adjusted cost of capital is
= 9.1 + 1
= 10.1%
Maximum amount willing to pay = CF1 ÷ (Adjusted cost of capital -G)
= $1,830,000 ÷ (0.101 - 0.02)
= $1,830,000 ÷ 0.081
= $22,592,593