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4 years ago

As previously underdeveloped nations begin to compete in the global market, which of the following has occurred answers

Business

2 answers:

natulia [17]4 years ago

5 0

Answer:

As previously underdeveloped nations begin to compete in the global market, its natural resources, products and markets begin to be accessible to the rest of the nations. At the same time, due to the lower economic capacity that these countries have compared to the more developed countries, large quantities of cheap labor enter the global market, as well as large quantities of products at low cost. This produces a relocation of production centers, which tend to relocate in these sectors that enter the developed world but tend to be cheaper than traditional developed countries such as the United States or Europe.

Hunter-Best [27]4 years ago

4 0

As previously underdeveloped nations begin to compete in the global market, which of the following has occurred: increasing piracy of energy resources. Piracy means to attack or reproduce someone else work. In this situation, other countries are doing this within the global market.

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Goodwin Technologies has been wildly successful but has yet to pay a dividend.

nydimaria [60]

Answer and Explanation:

The computation is shown below:

Year Cash flow PVF at 12% PV at 12%

D0 0 0 1 0

D1 0 0 0.89286 0

D2 0 0 0.79719 0

D3 2.25 2.25 0.71178 1.601505 (A)

D4 2.25 × 1.117^1 = 2.51325 0.63552 1.597221 (B)

D5 2.25 × 1.117^2 = 2.80730 0.56743 1.592946 (C)

Now

Horizon Value at D5 is

= Next Year Dividend ÷ (Required Rate -Growth rate)

= (2.25 × 1.117^2 × 1.036) ÷ (0.12 - 0.036)

34.6234 34.6234 0.56743 19.64634 (D)

Current Value 24.43801 (A + B + C + D)

Horizon Value = 34.62

Intrinsic Value = 24.43

Now

Current expected dividend yield is

= Dividend ÷ Market Price

= 0 ÷ 24 ÷ 43

= 0 %

And, the minimum expected capital yield should be equivalent to the required rate of return i.e 12%

The company should not paying the dividend because it involves various reasons lime expansion plans, seasonal & cyclical sales, buy back shares

5 0

3 years ago

You are considering moving your money to new bank offering a one-year CD that pays an 5 %5% APR with monthly compounding. Your

Gelneren [198K]

Answer:

2.53%

Explanation:

We need to understand what effective annual rate is to solve this question.

Effective Annual Rate is the actual interest earned on an investment due to effect of compounding.

The formula is:

Effective Annual Rate = $(1+\frac{i}{n})^n - 1$

Where

i is the interest rate given (nominal interest rate)

n is the number of compounding per year

For the old bank,

5% is the interest rate, so i = 5% = 5/100 = 0.05

n is the number of compounding per year, that will be n = 12 since compounding monthly

So, we have:

Effective Annual Rate $(1+\frac{0.05}{12})^{12} -1\\=0.051161$

For second bank, we have:

i = what we need to find

n = 2 (since semi annual compounding, every 6 months)

So,

Effective Annual Rate = $(1+\frac{i}{2})^2 - 1$

This should be equal to APR from 1st bank (0.05)

So, we solve for i:

$0.05=(1+\frac{i}{2})^2 - 1\\1.05=(1+\frac{i}{2})^2 \\i=0.0253$

So, the interest would have to be

0.0253 * 100 = 2.53%

8 0

4 years ago

The prepaid insurance account had a balance of $3,000 at the beginning of the year. The account was debited for $32,500 for prem

Nitella [24]

Answer:

A. Date Account Title Debit Credit

Insurance expense $30,700

($3000+$32500-$4800)

Prepaid insurance $30,700

B. Date Account Title Debit Credit

Insurance expense $30,700

Prepaid insurance $30,700

5 0

3 years ago

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000,

Tanya [424]

Answer:

a. Year 0 Net Cash Flows = $984,000

b. We have:

Year 1 net operating cash flows = $306,159

Year 2 net operating cash flows = $332,986

Year 3 net operating cash flows = $261,479

c. Additional Year 3- cash flow = $504,877

d. The machine should be purchased.

Explanation:

We start by first calculating the following:

Initial Investment = Base Price + Modification Cost = $940,000 + $25,000 = $965,000

Useful Life = 3 years

Depreciation in Year 1 = 0.3333 * $965,000 = $321,634.50

Depreciation in Year 2 = 0.4445 * $965,000 = $428,942.50

Depreciation in Year 3 = 0.1481 * $965,000 = $142,916.50

Book Value at the end of Year 3 = $965,000 - $321,634.50 - $428,942.50 - $142,916.50 = $71,506.50

After-tax Salvage Value = Salvage Value - (Salvage Value - Book Value) * Marginal tax rate = $624,000 – ($624,000 - $71,506.50) * 25% = $485,877

Initial Investment in NWC = $19,000

We can now proceed as follows:

a. What is the Year 0 net cash flow?

Year 0 Net Cash Flows = Initial Investment + Initial Investment in NWC = $965,000 + $19,000 = $984,000

b. What are the net operating cash flows in Years 1, 2, 3?

Year 1 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 1) = ($301,000 * (1 – 0.25)) + (0.25 * $321,634.50) = $306,159

Year 2 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 2) = ($301,000 * (1 – 0.25)) + (0.25 * $428,942.50) = $332,986

Year 3 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 3) = ($301,000 * (1 – 0.25)) + (0.25 * $142,916.50) = $261,479

c. What is the additional Year 3- cash flow (i.e. after tax salvage and the return of working capital)?

Additional Year 3- cash flow = NWC recovered + After-tax Salvage Value = $19,000 + $485,877 = $504,877

d. If the project's cost of capital is 12%, should the machine be purchased?

This can be determined from the net present value (NPV) calculated as follows:

NPV = -$984,000 + ($306,159/1.12^1) + ($332,986/1.12^2) + ($261,479/1.12^3) + ($504,877/1.12^3) = $100,287.71

Since the NPV of the machine of $100,287.71 is positive, the machine should be purchased.

7 0

3 years ago

If a person has a house worth $100,000, a mortgage of $90,000, savings of $5,000, a car valued at $10,000, a $7,000 car loan, an

Ludmilka [50]

Answer:

$15,000

Explanation:

A person's net worth is the difference between their total assets and total liabilities.

In this case,

Assets are

House $100,000

Savings $5,000

Car $10,000

Total assets= $115,000

Liabilities

mortgage of $90,000,

car loan $7,000

credit card debt $3,000

Total liabilities= $100,000

Net worth = Total assets - Total liabilities

=$115,000 - $100,000

=$15,000

3 0

3 years ago