Answer:
the company includes at least 10% of overhead costs and an 8% profit margin in all the sales.
Explanation:
Dumping occurs when companies export their products at a lower price than domestic sales price. American laws prohibit dumping and require foreign firms to include 10% overhead costs + an 8% profit margin in the prices of the goods they export to the US.
Answer:
<u><em>15.63%</em></u>
Explanation:
The answer is simply calculated by putting a simple formula in place.
The formula is, P = D/(r-g)
Hence, applying the formula, we have the following values,
P: 40 , D: 4.25 , g: 0.05 & r: ?
Step 1: 40 = 4.25/(r-0.05)
Step 2: r = (4.25/40)+0.05
Hence the cost of equity is = 15.63%
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Answer:
B
Explanation:
The capital market serves as an intermediator between households and firms. In a classic economic model, households are owners of capital resources, but firms need these resources to operate. Then, the capital market allows that households rent their capital resources to firms and firms pay them back. It is a beneficial allocation of resources for households and for firms.
Answer:
Explanation:
1) Interest expense = 5000000 × 10% = 500000
Times interest earned = Income before interest and tax / Interest expense = (1500000+500000) / 500000 = 4 Times
2) Earning per share of Common Stock = (Income after tax-Income tax-preferred dividend) / Share outstanding = (1500000-200000-100000 ) / 200000 = 6 per share
3) Price earning ratio = 75 / 6 = 12.50 times
4) Dividend per share of Common Stock = 150000 / 200000 = 0.75 per share
5) Dividend yield = 0.75 / 75 = 1%