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3 years ago

How does the WTO promote global free trade?

Business

1 answer:

kherson [118]3 years ago

4 0

Answer:

C. By creating multilateral trade agreements

Explanation:

The WTO's main aim is to promote free trade by lowering tariffs and other barriers. It does this through agreements negotiated and signed by most of the world's trading nations. And when member countries don't play by the agreed rules, the WTO can impose trade sanctions against them.

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The All-Mine Corporation is deciding whether to invest in a new one-year project. The project would have to be financed by equit

Lerok [7]

A. NPV of the project

NPV = -2000 + 2500/(1.15) = $173.91

B. Value of the firm and its debt and equity components before and after the project addition.

Determine expected cash flows before the project.

($3,000 + $3,000 + $1,000)/3)/1.15 = $2,333.33/1.15 = $2,028.99

($1,500 + $0 + $0)/3)/1.15 = $500/1.15=$434.78

Determine value with project.

($3,000 + $3,000 + $3,000)/3)/1.15 =$3,000/1.15 = $2,608.70

($4,000 + $2,500 + $500)/3)/1.15 = $2,333.33/1.15=$2,028.99

C. The company should not take the project because the NPV does not go to equity but to bond holders.

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3 years ago

You have a current credit card balance of $450.00, which you are paying off so you can close the account. No new purchases have

lesantik [10]

Answer:

It's Best to Pay Your Credit Card Balance in Full Each Month

Explanation:

Leaving a balance will not help your credit scores—it will just cost you money in the form of interest. Carrying a high balance on your credit cards has a negative impact on scores because it increases your credit utilization ratio.

5 0

3 years ago

A store has 5 years remaining on its lease in a mall. Rent is $1, 900 per month, 60 payments remain, and the next payment is due

photoshop1234 [79]

Answer:

a) No, since the present value of new lease is more than old.

b) Detailed information about the explanation is shown below

c) At 39.80% nominal WACC

Explanation:

PV of old and new lease terms

Old Cash Flow New Cash Flow

0 0 0 0

1-9 - 1900 1-9 0

10-60 - 1900 10-60 2700

NPER 60 NPER 60

rate 1% rate 1%

PV ($85,414.57) PV ($98,250.36)

PV ( 1%, 60, 1900) PV ( 1%,9,- PV(1%,51, 2700))

Should the new lease be accepted? <u> No, since the present value of new lease is more than old.</u>

b) If the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and the old leases?

For this part pv of old lease should be equal to pv of new lease at t = 9

85414.57 × (1.01)⁹ 93416.657

Nper 51

Rate 1%

New lease amount ( $2,347.26)

PMT (1%, 51,93416.66)

Period Old Lease New Lease Change in lease

0 0 0 0

1-9 -1900 0 -1900

10-60 -1900 -2700 800

-1900

800

3.317% x 12 = 39.80%

IRR(Values 1:60)

The store owner is not sure of the 12% WACC - it could be higher or lower. At what nominal WACC would the store owner be indifferent between the two leases?

At 39.80% nominal WACC

4 0

3 years ago

Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of u

Travka [436]

Answer:

Budgeted overhead= $283,400

Explanation:

Giving the following information:

Production:

October= 192,000

variable overhead is applied at a rate of $0.70 per unit of production.

Fixed overhead equals $149,000 per month.

To calculate the budgeted overhead, we need to determine the total variable overhead for the month:

Budgeted overhead= fixed overhead + total variable overhead

Budgeted overhead= 149,000 + 0.7*192,000

Budgeted overhead= $283,400

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3 years ago

"If the interest rate on a U.S. one-year bond is 2%, the interest rate on a Brazilian one-year bond is 8%, and the currency prem

cluponka [151]

3% is the answer.

<u>Explanation:</u>

The financial matters of market interest direct that when the request is high, costs rise and the cash acknowledges in esteem. Conversely, if a nation imports more than it sends out, there is generally less interest in its money, so costs should decrease.

On account of cash, it deteriorates or loses esteem. The stockpile of money is dictated by the local interest for imports from abroad. The more it imports the more noteworthy the inventory of pounds onto the outside trade advertise. An enormous extent of momentary exchange monetary standards is by sellers who work for money related organizations.

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3 years ago