Which of the following is a drawback of a countertrade agreement?
A. It fails to give firms a way to finance an export deal.
B. It requires an in-house trading department to be maintained, which can be expensive and time-consuming.
C. It is detrimental to the economy of the importing country.
D. Developing nations may have trouble raising the foreign exchange necessary to pay for imports.
E. It is not an acceptable means of trading in most developing countries.
B
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A clause in the collective bargaining agreement that ties future wage increases to increases in the cost of living is known as the ______ clause.
Fill in the blank(s) with the appropriate word(s).
What is the expected rate of return to equityholders if the firm has a 30% tax rate, a 10.20% rate of interest paid on debt, a 15.20% WACC and a 62% debt-asset ration?
a. 28.35% b. 21.85% c. 23.10% d. 13.10%