Vocational education is one path to a career

Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the te

Neko [114]

Answer: a. there are no incentives for Beta to engage in international specialization and trade with Alpha.

Explanation:

Beta can produce 16 oranges or 4 apples in an hour. This means that for every Apple they produce, they can produce 4 oranges;

4 apples : 16 oranges

1 apples : 4 oranges

This is the same terms of trade being offered to them by Alpha because if they sell 1 apple to Alpha they will get 4 oranges. This is the same thing they will get when they are producing for themselves alone.

An incentive would have been them getting more oranges per apple than they can produce on their own if they sacrifice one apple which is not the case. There are simply no incentives for Beta to engage in international specialization and trade with Alpha.

4 0

4 years ago

A company purchased equipment for use in the business at a cost of $15,000, one-fourth was paid in cash, and the company signed

timofeeve [1]

Answer:rr56iomivt

Explanation:

gi'opi[9[hjkjgkglo8uhuoouhiii6666666699999999999999999

8 0

2 years ago

A firm is considering a project requiring an investment of $30,000. The project would generate an annual cash flow of $7,251 for

Nina [5.8K]

Answer:

c.12%

Explanation:

PVF of 12% for 6 years is 4.11

PVFof 11% for 6 years is 4.23

Present value of cash inflows, 12% = 7251*4.11

Present value of cash inflows, 12% = 29801.61

Present value of cash inflows, 11% = 7251*4.23

Present value of cash inflows, 11% = 30671.73

Internal rate of return = 11% + (30671.73 - 30000)/(30671.73-29801.61)

Internal rate of return = 11.7719969659%

Internal rate of return = 11.772%

3 0

3 years ago

Kuhn company is considering a new project that will require an initial investment of $4 million. It has a target capital structu

patriot [66]

Answer:

b. 9.00%

Explanation:

For the computation of WACC first we need to follow some steps which is shown below:-

Step 1

Cost of debt = 5.48% which is explained with the help of attachment.

Given that,

Present value = $1,555.38

Future value or Face value = $1,000

PMT = 1,000 × 11% = $110

NPER = 15 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the cost of debt is

Step 2

Cost of preferred stock = Annual preferred dividend ÷ Price

= $8 × $92.25

= 0.086721

Step 3

Cost of equity = Dividend ÷ (Stock price × (1 - flotation cost)) + Growth rate

= 2.78 ÷ (33.35 × (1 - 0.08)) + 0.092

= 18.26%

WACC = Weight of debt × Cost debt) + (Weight of preference stock × Cost of preference stock) + (Weight of equity × cost of equity)

= (0.58 × (0.0548 × (1 - 0.4)) + (0.06 × 0.086721) + (0.36 × 0.1826068)

= 9.00%

6 0

3 years ago

Parent Corporation purchased land from S1 Corporation for $220,000 on December 26, 20X8. This purchase followed a series of tran

docker41 [41]

Answer:

$160,000

Explanation:

On February 15, 20X8, S3 Corporation purchased the land from a non affiliate for $160,000.

That was the last operation involving a third party.

The rest of the operation should not recognize any income or loss.

If not, a company can create artificial gains and losses by selling the asset at diferent prices.

It will sale higher on one company to avoid a net loss

and then sale cheaper on another to decrease the taxable income.

That's why it will be "lock" at 160,00 until an operation is made with a non-affiliate company

5 0

4 years ago