Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
Answer:
Marginal benefits and marginal costs.
Explanation:
The link between the Scarcity and choice is the study of how individuals and society choose to allocate scarce resources.
<h3>What is the Meaning of Scarcity?</h3>
Scarcity refers to the insufficient or the shortage of the resources with the individual or in the particular nation. For Example In any Industry there is the shortage of the skilled workers.
The complete question is attached below.
The link between the Scarcity and the Opportunity Cost is that it has the direct implication on the scarcity. In decision making process, one must has to sacrifice the opportunity cost of that action.
The link between the Scarcity and competition is due to the Lack of resources which forces people to compete for the limited resources that are accessible because there aren't enough to satisfy everyone's wants.
Additionally, people would compete for the rationing tool, such as money, whatever it may be.
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The alpha of the stock is <u>6.6%</u>.
Alpha is also a degree of risk. With an alpha of - 15 means, the investment changed into far too risky given the go back. An alpha of 0 suggests that an asset has earned a return commensurate with the risk. Alpha of more than 0 means an investment outperformed, after adjusting for volatility. The process to calculate the alpha of the stock is: 0.12-[0.33+1.2(0.10+0.33)]= 0.066 = 0.066 * 100 = 6.6%
The expected return on monetary funding is the predicted fee of its return. it is a measure of the middle of the distribution of the random variable this is the return.
The risk-free rate is the rate of return offered by funding that consists of zero threat. Each investment asset contains a few levels of risk but is small, so the risk-free fee is something of a theoretical idea. In exercise, it is considered to be the interest rate paid on brief-term government debt.
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