Answer:
The answer is -$4,940
Explanation:
Net income = Profit before interest and tax minus interest minus taxes
We rewrite the formula to get interest:
Interest = Profit before interest and tax minus taxes minus net income
= $27,130 - $5,450 - $16,220
=$5,460
Cash flow to creditor equals:
Amount repaid to suppliers minus new amount borrowed plus interest
$31,600 - $42,000 + $5,460
-$4,940
Answer:
The effective rate of protection for the U.S. steel industry is approximately 17.5%
Explanation:
Mathematically, the effective rate of protection is calculated as follows;
e = (n-ab)/(1-a)
where n is the nominal tariff rate on the final product , a is the ratio of the value of the imported input to the value of the finished product and b is the nominal tariff rate on the imported input
Mathematically;
a = value of iron ore/value of steel = 100,00/500,000 = 1/5 = 0.2
From the question, we can see that nominal tariff rate for steel n = 15% = 15/100 = 0.15
The nominal rate for iron ore b = 5% = 5/100 = 0.05
So we substitute all of these into the equation of e above
e = {0.15-0.2(0.05)}/(1-0.2) = (0.15-0.01)/0.8 = 0.14/0.8 = 0.175 which is same as 17.5%
Answer:
c. 11.05%
Explanation:
The computation of firm's required return is shown below:-
First we need to find out the Market Risk Premium for computing the firm's required return.
Using CAPM, we calculate Market Risk Premium
Expected Future Market Rate of Return = Risk Free Rate on T-Bond + Beta of the Market × Market Risk Premium
10% = 6.5% + 1 × Market Risk Premium
Market Risk Premium = (10% - 6.5%) ÷ 1
= 3.5%
Required Rate of Return = Risk Free Rate + Beta of the Stock × Market Risk Premium
= 6.5% + (1 + 3.00%) × 3.5%
= 6.5% + 1.30 × 3.5%
= 11.05%
Answer:
Investment trading
Explanation:
Financial institutions' core business is to sell loans. They accept deposits from customers and use those deposits to create loans to firms and individuals. Financial institutions are intermediaries of credit; they connect the demand and the suppliers of credit. Direct deposits are a way of depositing money while ATM's and debits card gives customers access to their deposits.
Investment trading is a service offered by stock exchange markets through stockbrokers and investment banks.
I
SMART is an acronym that means specific, measurable, achievable, relevant. The answer is D.
