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3 years ago

Suppose that China is a small country of peanuts import, and the demand and supply of peanuts are as follows:

Business

1 answer:

chubhunter [2.5K]3 years ago

7 0

1. a. Under free trade, China's peanuts domestic production will be 100 units (50 + 5 x 10).

b. Under free trade, China's peanuts import will be 200 units (300 - 100).

c. Under free trade, China's peanuts export will be negative 200 units (100 - 300).

d. Free trade ensures that domestic consumption is met because domestic manufacturers will produce 100 units while the remaining 200 units demanded by consumers will be met through imports.

2. a. With a quota limit of 200 units for peanuts import, peanuts production will still be 100 units (50 + 5 x 10).

b. Under the quota limit, China's peanuts import will be 200 units (300 - 100) since internal production is not more than 100 units.

c. Under the quota limit, China's peanuts export will be zero units.

d. The quota limit will still ensure that domestic consumption is met because the quota of 200 units plus 100 units of internal production will meet domestic demand for 300 units.

<h3>What are Free Trade and Quota?</h3>

Free trade implies the absence of any government-imposed limits on imports and exports. On the other hand, quota refers to the trade restriction imposed by governments.

<h3>Data and Calculations:</h3>

D = 400 - 10P

S = 50 + 5P

Where:

D = Demand

S = Domestic Supply

P = Price

Price = $10

a. The quantity demanded will be 300 units (400 - 10 x 10).

b. The quantity supplied (domestically) will be 100 units (50 + 5 x 10).

c. The import quantity will be 200 units (300 - 100).

c. Quota imposed on imports of peanuts = 200 units

Thus, <u>there will be no changes</u> in the welfare of consumers and manufacturers under the quota limit compared with free trade because the quota meets domestic demand.

Learn more import and export quota systems and free trade here: brainly.com/question/14913943 and brainly.com/question/10608502

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zavuch27 [327]

Answer:

The current share price is $60.97

Explanation:

The values given are

Symon's super corporation is expected to pay a dividend of $4.39

The company expects to increase its dividend by 4.2percent every year

The required return on the company's stock is 11.4 percent

Therefore, the current share price is

= 4.39/( 11.4/100 + 4.2/100 )

= 4.39/( 0.114 - 0.042)

= 4.39/(0.072)

= 60.97

Thus, the current share price is $60.97

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3 years ago

Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments

lianna [129]

Answer:

corporate finance

capital markets

investments

Explanation:

Corporate finance is a branch of finance that is concerned with how companies manage their sources of funds, capital structure and make investment decisions.

Ethan must make a decision on how to minimise cost so as to acquire more assets. the purchase of asset is an investment decision. the area of finance here is corporate finance.

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There are two types of capital markets :

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Secondary market -previously issued securities are traded in this market.

Radford is selling a newly issued common stock. He is engaged in the primary market of the capital market

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For example, the purchase of of securities has the potential to increase the wealth of the holder.

Aakash is involved in investment

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3 years ago

A firm has forecasted sales of $4,500 in April, $3,000 in May, and $5,000 in June. All sales are on credit. 30% is collected in

Charra [1.4K]

Answer:

The $3,600 cash is collected in June

Explanation:

For computing the total cash collected in the June month, first, we have to find the sales of June and may which is based on the collection ratio which is given in the question.

June month collection = June sales × 30%

= $5,000 × 30%

= $1,500

In the question it is given that 30% is collected on June month and remaining i.e 70% collected in the May month or following month.

June month collection based on may sales = 70% × May sales

= 70% × $3,000

= $2,100

So, total cash collected in the June month is equal to

= June month collection + June month collection based on may sales

= $1,500 + $2,100

= $3,600

Hence, the $3,600 cash is collected in June

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3 years ago

What is the payback period for a project with an initial investment of $180000 that provides an annual cash inflow of $40000 for

Ahat [919]

Answer:

Option b: 5.2 Years

Explanation:

Payback period is defined as the amount of time it takes for cash returns or cash inflows of a project to recover the initial investment required for the project.

Payback period is estimated using the cumulative cashflows. Beginning from the initial investment, deduct annual cash flows of each successive year until the cumulative cashflow turn positive.

Cashflow Cumulative Cashflow

Year 0 ($180,000) ($180,000)

Year 1 $40,000 ($140,000)

Year 2 $40,000 ($100,000)

Year 3 $40,000 ($60,000)

Year 4 $25,000 ($35,000)

Year 5 $25,000 ($10,000)

Year 6 $50,000 $40,000

Year 7 $50,000 $90,000

Year 8 $50,000 $140,000

*Figures in brackets show negative cashflows

From the table above, it can be observed that the cumulative cashflow turn positive after year 5, which means that the payback period for the project will be somewhere between year 5 and year 6. Therefore, assuming a constant rate of cash inflows during the year, payback period for the project can be computed as

Payback period = 5 Years + (10,000/50,000) Years

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3 years ago

Lotta Dough just won the state lottery and has elected to receive $50,000 per year for 20 years in the form of an annuity due. W

lidiya [134]

Answer:

PV= $529,700.71

Explanation:

Giving the following information:

Cash flow= $50,000

the number of years= 20

Interest rate= 7%

First, we need to calculate the future value of the cash flows. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay

FV= {50,000*[(1.07^20)-1} / 0.07

FV= $2,049,774.62

Now, we can calculate the present value.

PV= FV/(1+i)^n

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PV= $529,700.71

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3 years ago