3. Problems and Applications Q3 Indicate whether each of the following actions represents foreign direct investment or foreign portfolio investment. Foreign Direct Investment Foreign Portfolio Investment Buying bonds issued by a foreign government Opening up a factory in a foreign country True or False: An individual investor is more likely to engage in foreign direct investment than a corporation.

Answers

Answer 1
Answer:

Answer: Please refer to Explanation

Explanation:

Foreign Direct Investment refers to the establishment of a company in a country by a foreign company or the acquisition of a company by a foreign company. The main thing to note is that the foreign company is involved DIRECTLY in the running of the newly established or acquired company.

Foreign Portfolio Investment however, is investing in another country by means of purchasing shares, bonds or other financial instruments from that country.

Therefore we can then classify the above accordingly,

Buying bonds issued by a foreign government. FOREIGN PORTFOLIO INVESTMENT.

Opening up a factory in a foreign country. FOREIGN DIRECT INVESTMENT.

An individual investor is more likely to engage in foreign direct investment than a corporation. FALSE.

Foreign Direct Investment would simply be too expensive for the average individual to engage in. It is way more likely to be a Corperation.


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Boatler Used Cadillac Co. requires $800,000 in financing over the next two years. The firm can borrow the funds for two years at 9 percent interest per year. Mr. Boatler decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 6.75 percent interest in the first year and 10.55 percent interest in the second year. Determine the total two-year interest cost under each plan. Which plan is less costly?

Answers

Answer:

Explanation:

Amount required   800000

   

Plan-1   9% per Annum

   

Year -1 800000 9% 72000

Year -2 800000 9% 72000

Total interest  144000

   

Plan-2    

   

Year -1 800000 6.75% 54000

Year -2 800000 10.55% 84400

Total interest  138400

   

Interset cost    

   

Plan-1   144000

Plan-2   138400

   

Plan 2 is more benificial because interest cost is lesser than plan-1    

Answer:

Plan1=$144000 Plan2= $138400

Plan two is  lower than plan 1 interest so it is the better plan

Explanation:

First option

$800000×0.09 =72000

So for two years

$72000×2=$144000

Second option

first year

800000×0.0675=$54000

second year

800000×0.1055=$84400

adding the two

$54000+$84400

=$138400

Plan two is  lower than plan 1 interest so it is the better plan

Individuals may become shareholders by buying common stock in corporations through brokers or directly from the company (if they offer a direct investment plan). In many countries, corporations may also offer employee stock options as a benefit for workers.

Answers

After a company goes public through an initial public offering (IPO), its stock becomes available for investors to buy and sell on an exchange.

What are you called when you own shares of a corporation's stock?

An individual or organisation that owns shares or stocks in a firm is referred to as a shareholder. Investors have the right to partial ownership of a certain firm when they own shares or stocks in that company. If the corporation is in trouble, shareholders may earn dividends and have some protection from liabilities.

The primary distinction between preferred and common stock is that common stock grants stockholders voting rights, whilst preferred stock does not. Preferred shareholders get dividend payments prior to regular shareholders since they have preference over the company's income.

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On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the maturity value of the note on March 1

Answers

Answer:

$9,236.71

Explanation:

The computation of the maturity value of the note is shown below:-

Interest Amount = ($9000 × 8%) × 120 ÷ 365

= $720 × 120 ÷ 365

= $236.71

So, the Maturity Value is

= Face value + Interest amount

= $9,000 + $236.71

= $9,236.71

Therefore for computing the maturity value we simply applied the above formula.

The following information pertains to Alpha Computing at the end of 2015: Assets $972,500
Liabilities $450,000
Net Income $237,500
Common Stock $370,000


Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2015.
What amount of dividends did the company pay in 2015?

Answers

Answer:

Dividens paid in 2015: $85.000

Explanation:

TOTAL ASSETS   972.500  

TOTAL LIABILITIES   450.000  

Common Stock  $ 370.000

Retained Earnings  $ 152.500

TOTAL EQUITY  $ 522.500

Retained Earnings Report  

Opening retained earnings $ 0

Add: Net Income $ 237.500

Subtotal $ 237.500

Less: Dividens -$ 85.000

Total $ 152.500

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Answers

Answer:

To create a new blank document:

Click the Microsoft Office button.

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Select Blank document under the Blank and recent section. It will be highlighted by default.

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The cost of speeding relates crashed in 2008 accounted for per second

Answers

Answer:

Thanks for the fact

Explanation:

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