Answer: b. it's profitable in the short run for another member to increase production.
Explanation:
This refers to an oligopolistic market where there are few producers of a good. These producers can come together to create a cartel that fixes prices for the goods and services they produce.
If they agree to cut back production, this will have the effect of increasing prices due to a reduction in supply. If a member decides to increase production, they would enjoy profits in the short term from the increased prices.
The other members would however respond by increasing production as well so those profits would stop towards the long run.
Answer:
Direct Investment
Explanation:
Direct investment is a technique of expanding into the foreign market in which an investor puts money into a business operating in another country designed in such a way to acquire controlling interest in the enterprise been invested in. It is a method used in controlling the interest of a business organization in another country different from yours. In direct investment, emphasis is laid on an organization from one country investing in another organization in a different country. Since NCD has financial resources and wants controlling interest in his expansion, direct investment is the way to go.
Answer:
The bond's issue (selling) price = $1,146,890.2
Explanation:
The selling price of the bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are paid semi anually and the par value of the bond that will be paid at the end of the 10 years.
During the 5 years, there are 10 equal periodic coupon payments that will be made. In each year, the total coupon paid will be 
and this payment will be split into two equal payments equal to 
. this stream of cashflows is an ordinary annuity
The periodic annual market rate is equal to 
The PV of the cashflows = PV of the coupon payments + PV of the par value of the bond
=$80,250*PV Annuity Factor for 10 years at 6.5% + 
Answer:
D) purchasing euro call options.
Explanation:
If Lazer purchased euro call options it would be basically buying the right to purchase euros at a specified currency exchange rate. This way Lazer would know what is the maximum amount it will have to pay for the euros it needs to cover its debts. The call option give the buyer the right to purchase the euros but not the obligation, so if the euro depreciates, then Lazer can simply decide to not use the call option.
Answer:
Incremental cash flow= $1,369.863~ $1,370
Explanation:
In accrual accounting, accounts receivable gives a measure of revenue that a business has earned.
Given the annual revenue as $25,000. To get the daily revenue
Daily revenue= Annual revenue/ 365
Daily revenue= 25,000/365
Daily revenue= $68.493
Customers are expected to pay within 20 days, so for every 20 days
Incremental cash flow= 20 days* 68.493
Incremental cash flow= $1,369.863~ $1,370
