Answer:
The correct answer is c. Upward sloping yield curve
.
Explanation:
Taking into account that it is determined that both the risk-free rate and the inflation rate will have no variation, it is possible to affirm that the yield can present two movements: an upward sloping curve; or a completely flat curve.
Answer:
Globalization of markets and brands
Correct option A
Explanation:
Globalization has enabled firms to specialize and to increase the intensity of R&D, innovation and capital in their output.
Globalization has made it easier for new companies to start competing with old companies.
Globalization has made companies to increased the number of people that it employs, both through exports and imports.
Answer:
b) 4 years
b) 16%
Explanation:
The computation of cash payback period for this investment is shown below:-
Year Net Cash Flow Cumulative Net Cash Flow
1 $180,000 $180,000
2 $120,000 $300,000
($180,000 + $120,000)
3 $100,000 $400,000
($300,000 + $100,000)
4 $90,000 $490,000
($400,000 + $90,000)
5 $120,000 $610,000
($490,000 + $120,000)
The period of payback is the duration in which the investment is recovered. Investment amounts to $490,000 and the cumulative net cash flow after 4 years is $490,000. So, the payback period is 4 years.
Year Income from Operations
1 $100,000
2 $40,000
3 $40,000
4 $10,000
5 $10,000
Total $200,000
Average Income = $200,000 ÷ 5
= $40,000
Average Investment = ($0 + $490,000) ÷ 2
= $245,000
Average Rate of Return = Average Income ÷ Investment × 100
= $40000 ÷ $245000 × 100
= 16.33%
or
= 16%
<u>Calculation of debt ratio:</u>
Debt Ratio can be calculated using the following formula:
Debt Ratio = Total Debt / Total Assets
We are given that debt/equity ratio is 0.50, it means Total Equity = 2 * Total Debt
Total Assets = Total Debt + Total Equity
So, Total Assets = Total Debt + 2* Total Debt
Or
Total Assets = 3* Total Debt
So, Debt Ratio = Total Debt / 3* Total Debt = 1/3 = 0.3333
Hence, Debt ratio is <u>0.3333</u>
