How can tariffs be justified?
What will be an ideal response?
Tariffs are justified on the grounds that they protect domestic employment and wages, help create a level playing field for international trade, equate the cost of imported products with the cost of domestically produced goods, and allow domestic industries to be insulated temporarily from foreign competition until they can grow and develop or protect industries necessary for national security.
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Answer the following statements true (T) or false (F)
The key imperative postulate in ARS 1 appears to be stability of the monetary unit.
Without exception, any duty can be delegated
Indicate whether the statement is true or false
Between 2001 and 2004 the phenomenal growth in the use of swap markets has been a rate of over ________ per year
A) 100% B) 80% C) 50% D) 33%
Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,225.00. (2) The company's tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20. (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? Do not round your intermediate calculations.
A. 8.48% B. 10.01% C. 7.80% D. 6.79% E. 7.63%