The asymmetric information problem ____

Explain consumptions of the principal of absolute advantage

DENIUS [597]

Answer:

The Absolute Advantage Theory assumed that only bilateral trade could take place between nations and only in two commodities that are to be exchanged.

Explanation:

In economics, the principle of absolute advantage refers to the ability of a party (an individual, a firm, or a country) to produce more of a good or service than competitors while using the same amount of resources.

6 0

3 years ago

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient

Phantasy [73]

Answer:

sry I don't know the answer

sry

8 0

3 years ago

The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, whil

allsm [11]

Answer:

It is 3.25 times

Explanation:

EBITDA Multiple = Enterprise Value/ EBITDA

Where EBITDA = EBIT+Depreciation & Amortization

= $91,000+$157,000

=$248,000

Enterprise Value (EV) = Market value of the equity +Debt-Cash and Cash Equivalent

EV= $645,000+$215,000-$53,000

=$807,000

Hence, EBITDA Multiple = $807,000/$248,000

=3.25 times

EBITDA Multiple is used to compares a company’s Enterprise Value to its annual EBITDA.

8 0

3 years ago

Read 2 more answers

All of the following statements related to recording warranty expense are true except: Multiple Choice Recording estimated warra

wel

Answer:

<em>Warranty expense should be recorded in the period when the warranty service is performed.</em>

Explanation:

When the product is sold, a product guarantee liability and warranty cost should be reported if it is possible that consumers may make claims under the warranty and the amount can be calculated.

Those two provisions are part of the Financial Accounting Standards Statement No. 5 of the FASB, Accounting for Contingencies.

5 0

3 years ago

Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a c

Nookie1986 [14]

Answer:

The bond's yield to maturity is 9.45% using Excel to get exact values, and 9.59% using approximate method.

Explanation:

We can calculate is using 2 ways, using Excel to get the exact percentage or with approximate methods, calculating the semi-annual Yield to Maturity using the following formula

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$