A because if the firm is switching from cow milk to soya milk, suppler will be threatened and will be motivated to produce in large supply
A country would have a comparative advantage to produce a good if the cost of producing this good, even if it produces efficiently, is higher than that of other countries.
Explanation:
The Competitive Vantage Principle explains how an individual produces more commodities and uses fewer goods with a comparative advantage under freer trade.
For example, the comparative advantage of oil-producing countries in chemical products. Compared to countries that are not there, the local manufactured oil is a cheap source of chemicals.
It can produce products with fewer resources, which offers countries a comparative advantage at lower incentive costs. The PPF's gradient reflects the cost of output capacity. Improving one good's production means producing less of one.
The answer is <u>"Bring Your Own Device (BYOD)".</u>
BYOD (bring your own device) is the expanding pattern toward representative claimed gadgets inside a business. Cell phones are the most well-known case yet representatives likewise take their own particular tablets, PCs and USB crashes into the working environment.
BYOD is a piece of the bigger pattern of IT consumerization, in which customer programming and equipment are being brought into the venture. BYOT (bring your own technology) alludes to the utilization of customer gadgets and applications in the working environment.
Answer:
Each share worth is $2.59
Explanation:
According to the given data we have the following:
D1 = Cash Flow at the end of year 1 = $ 10 million
r = Cost of Capital = 10% = 0.1
g = perpetual growth of cash flows
Hence, The present value of Cash Flows = D1/(r-g)
= 10/(0.1-0.03)
=10/0.07
= $ 142.8571428571 million
= $ 142.86 million
To find the equity value we need to remove the net debt from cash flows
Net Debt = Debt - Cash
= 22 - 8.5
= $ 13.5 million
Now net cash flows = Cash Flows - Net Debt
= 142.86 - 13.5
= $ 129.36 million
Therefore, each share worth = Present Value of Cash Flow / No of Outstanding Shares
= 129.36 / 50 (Both values are in millions so the zeros are ignored)
= 2.5872
= $2.59
Each share worth is $2.59
Answer: Option C
Explanation: Capital asset pricing model is a method of computing cost of equity an entity has to bear for financing its projects.
It can be shown as following :-
Ke = Rf + β * (ERm - Rf)
where,
Rf = risk free rat
β = beta of the investment
ERm = expected rate of return
Ke = cost of equity
Hence, the correct option is C
