________ is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.
Expropriation
What is expropriation ?
Expropriation is when a government seizes privately owned property against the owners' will, presumably so that it can be used for the general welfare of the populace. Properties are most frequently taken in the United States in order to construct roads, trains, airports, or other infrastructure projects. Since the Fifth Amendment of the Constitution prohibits the expropriation of private property "for public use without just compensation," the property owner must be compensated for the seizure.
So, Expropriation is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.
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Income statement financial statement is prepared last. An income statement is a financial statement that lists the revenue and expenses of the company. Additionally, it displays a company's profit or loss over a specific time frame. You may better comprehend your company's financial situation by comparing the income statement to the balance sheet, cash flow statement, and cash flow forecast.
An income statement displays the revenues, costs, and profitability of a business over time. It is also sometimes referred to as an earnings statement or a profit-and-loss statement. One of the more crucial financial figures you might examine for a company is the income statement.
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Answer:
$0.12 billion; a budget surplus
Explanation:
Given that,
Total spending for the last fiscal year = $4.71 billion
Tax collected during the same fiscal year = $4.83 billion
Government transfers = $0
Lilliput's budget balance:
= (Taxes - Government transfers) - Total spending of government
= ($4.83 billion - $0) - $4.71 billion
= $0.12 billion
Therefore, the Lilliput has a budget surplus during the last fiscal year because of the positive budget balance.
Answer:
11.07%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)
= (0.25 × 8%) × ( 1 - 34%) + (0.75 × 13%)
= 1.32% + 9.75%
= 11.07%
We simply multiply the weighatge with its capital structure so that the correct weightage cost of capital can come.