Answer:
Cash Flow Year Present value
- 0 0.00
3.41 1 2.99
3.58 2 2.76
3.76 3 2.54
3.95 4 2.38
4.15 5 2.23
4.36 6 2.09
91.46 6 43.94
Current share price = $58.93
Explanation:
Answer:
The correct answer is: reduced risk
Explanation:
After a correct identification and previous evaluation of the risks related to the export, the company can decide to initiate only activities that present risks inferior to the opportunities that are glimpsed.
The management of export-related risks depends on the risk propensity of the company and also on its competitiveness. There are companies with high demand products and with little competitive pressure that can afford to give up exporting with relatively moderate levels of risk. The opposite will happen with companies that have little differentiated products and that move in highly competitive environments. Companies with strong growth objectives and “risky” owners assume more risks than companies that are satisfied with their market position.
Answer:
Bonds are a far more important source of financing than are stocks
Explanation:
There is so much of risk associated with the issue of stock. Though it is essential for any business to issue some stock, but bonds are always favorable as they have a defined maturity, defined amount associated, and defined interest payment.
There is no direct payment of interest in bonds but the expense is to be recorded in books as per the matching and accrual principle.
The discounted value of interest to be paid on maturity is recorded.
Further, there is a tax benefit on bond payments.
Answer:
The number of new clients will increase by
12/3 = 4
Therefore, the number of new clients will increase by 4.
Explanation:
In getting new client, Sam takes 5hours, while Terasa takes 3hours.
In preparing food, Sam takes 10hours while Teresa takes 12hours.
It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.
Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.
Teresa will free up 12hours she used in the preparation of food.
Since she use 3hours to get new client, She will get
12/3, which equals 4 number of clients
