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3 years ago

How does specialization affect international trade

Business

1 answer:

frozen [14]3 years ago

3 0

Answer:

Countries become better at making the product they specialize in. Consumer benefits: Specialization means that the opportunity cost of production is lower, which means that globally more goods are produced and prices are lower. Consumers benefit from these lower prices and greater quantity of goods.

Explanation:

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Stech Co. is issuing $9 million 12% bonds in a private placement on July 1, 2017. Each $1,000 bond pays interest semi-annually o

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Answer:

Expected selling price =$ 1,271.81

Explanation:

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.

These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

coupon rate - 12%, yield - 8%, years to maturity- 10 years

Semi-annual coupon rate = 12%/2 = 6%

Semi-annual Interest payment =( 6%×$1000)= $60

Semi annual yield = 8%/2 = 4%

PV of interest payment

= A ×(1- (1+r)^(-n))/r

A- interest payment, r- yield - 4%, n- no of periods- 2 × 10 = 20periods

= 60× (1-(1.04)^(-10×2))/0.04)

= 60× 13.59032634

=$815.41

Step 2

PV of redemption value (RV)

PV = RV × (1+r)^(-n)

RV - redemption value- $1000, n- 2×10 r- 4%

= 1,000 × (1+0.04)^(-2×10)

= $456.38

Step 3

Price of bond = PV of interest payment + PV of RV

= $815.41 + $456.38

= $ 1,271.81

Expected selling price =$ 1,271.81

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3 years ago

On January 1, 2017, Bensen Company leased equipment to Flynn Corporation. The following information pertains to this lease.

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Answer:

Please see attachment

Explanation:

Please see attachment

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Answer:

Each transaction leaves a different impact on each component of the accounting equation.

Explanation:

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The bill of $2,500 will increase assets

$8,000 bill will increase assets

Paying $6,000 for equipment will reduce cash and increase fixed assets.

Paying $3,000 cash as wages will reduce the amount of cash and eventually assets

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Paying $10,000 will reduce assets and liabilities.

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4 years ago

Joel Foster is the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The required ra

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Answer:

Stock A at an amount of $1075000 at beta of 1.2

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3 years ago

A food truck operator originally produced hamburgers and hotdogs. To serve the tastes of their various customers, the hot dog ve

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The correct answer is (b) Dis-economies of scope

Explanation:

Solution

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