The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

Explain how international trade allows a country to move beyond its production possibilities frontier.

Digiron [165]

Answer:

Increased international trade, especially exports, increases production efficiency which allows a country to move beyond its production possibilities frontier.

Explanation:

In business terms, a production possibilities frontier is a curve that shows how much two products in an economy are able to produce when the two products are competing over the same limited resources. The curve can also be used to determine the quantity of a product that can be produced in an economy when the economy is working at its maximum efficiency. There are many factors that affect the production possibilities frontier, namely;

International trade:

Trade is the exchange of goods and services for commercial interests. International trade involves trade between countries. Most countries trade in the form of exports and imports. Exports are goods and services taken to foreign countries while imports are goods and services received from other countries. When there are greater exports than imports, it means that more of your goods and services are on demand by other countries thus makes your currency stronger. An increased demand for domestic goods and services increases production efficiency which allows a country to move beyond its production possibilities frontier.

6 0

3 years ago

ABC Co. has 165 million shares outstanding and expects earnings at the end of this year of $2.05 billion. ABC plans to pay out 4

frosja888 [35]

Answer:

Share price = $85.684

Explanation:

It is given that ,Ke = cost of equity = 15% ,g = Growth = 9.2%% and Dividend and Repurchase = 40%

Now we know that

PV = CF /(Ke- g)

PV = $2.05 billion*0.4 / (0.15-0.092) = 0.84 billion /0.058

=$14137931034.483

Share price = $14137931034.483 / 165000000 million

Share price = $85.684

8 0

3 years ago

Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing system. Currently, a plantwide

sveta [45]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Department A Department B

Overhead costs (expected) $120,000 $80,000

Normal activity (machine hours) 16,000 5,800

A) To calculate the plantwide overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (120,000 + 80,000) / (16,000 + 5,800)= $9.17 per machine hour

B) We need to use the same formula, but for each department:

Department A:

Estimated manufacturing overhead rate= 120,000/16,000= $7.5 per machine hour

Department B:

Estimated manufacturing overhead rate= 80,000/5,800= $13.79 per machine hour

7 0

3 years ago

7. DuPont Identity. X Corp. has net income of $20 million, Sales of $100 million, asset turnover of .6, and debt-equity ratio of

goldfiish [28.3K]

Answer:

Explanation:

Net Income = 20m

Sales = 100m

Debt-equity ration = 40%

Asset turnover = 0.60

A)

Profit Margin = Net Income / Sales = $20 million / $100 million = 20%

Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40

Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%

B)

Debt-equity ratio = 60%

Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60

Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%

As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)

7 0

3 years ago

What does the size of the dividend per share of stock depend on?

defon

Answer:

The size of the dividend per share of stock depends on: The corporation's profit

Dividend per share is calculated by: Total dividend / Total shares outstanding,

Which means that dividend per share will increase if the total dividend increases.

Meanwhile, the total dividend will be increased if the company gains more profit

4 0

3 years ago

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