Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value = 
=
= 29.69 ≈ $29.70
Answer: $200,000
Explanation:
The company spent $200,000 on the research that led to the development of the navigation device and according to Accounting guidelines, Research and Development costs are to be expensed in the period that they occurred.
The entire $200,000 that was spent should therefore be expensed as Research and Development.
Answer:
a. $42
b. $36
c. benefits consumers in Brazil. They pay less by $6.
d. does not affect consumers and producers in the United States.
Explanation:
a) Data and Calculations:
Free market price of semiconductor = $30
Brazil tariff on imports = 40%
This means Brazilians pay $42 ($30 * 1.4) per semiconductor
New Brazil tariff on imports = 20%
This implies that Brazilians will now pay $36 ($30 * 1.2) per semiconductor
b) Import tariffs by Brazil are taxes imposed on imports into Brazil by the Brazilian government to discourage imports, generate revenue, and control the type of goods and services imported into Brazil. The Uruguay Round was an international trade conference that birthed the WTO. The purpose of the conference and the creation of WTO was to enable countries negotiate better trade deals and ensure the creation of free trade among the comity of nations.
Answer:
a. Four-firm concentration ratio is the total sales percentage of the top 4 burger shops in the industry;
= 25% + 24% + 18% + 12%
= 79%
b. Herfindahl index is the sum of the squares of the percentage sales of all the shops in the industry;
= 25² + 24² + 18² + 12² + 11² + 6² + 4²
= 1,842
c. Top 3 shops combine to form one shop.
= 25 + 24 + 18
= 67%
Four-firm ratio = 67% + 12% + 11% + 6%
= 96%
Herfindahl index = 67² + 12² + 11² + 6² + 4²
= 4,806
