Answer:
Answer is option C, i.e. trusts discourages taking risks.
Explanation:
If the relationship between the supervisors and employees is based on trust and they are ready to rely on each other with almost everything related to their jobs, then there are greater chances that each of them would be equally ready to enter into any risk that may benefit them in long run. Therefore, a strong trustworthy relationship between the supervisors and the employees encourages them to take risks and not discourages them to do so. Therefore, the answer is option C.
Answer: Revoking once the performance begin is not possible.
Explanation:
Under the modern-day view, an offer that can only be accepted by completion of a specific act cannot be revoked once performance has begun.
Answer:
b. is more meaningful if compared to other financial information
Explanation:
The financial statements includes the income statement, balance sheet, cash flow statement, etc
The analyzing of the financial statements of a company determines the current position of the company with respect to the profitability, performance, liquidity, etc
So, the single item of the financial statement should be more important as compared to the other financial information
Answer:
a. $10 per share
b. 16 million shares
c. $250 million
d. 64%
e. No one gain or loss
Explanation:
a. The expected market price of the common stock is same as given in the question i.e $10 per share
b. The buy back shares would be
= New debt value ÷ market price per share
= $160 million ÷ $10
= 16 million shares
c. The market value of the firm would be
= (Outstanding shares - buy back shares) × market price per share + debt value
= (25 million shares - 16 million shares) × $10 + $160 million
= $90 million + $1260 million
= $250 million
d. The debt ratio would be
= Debt value ÷ market value of the firm
= $160 million ÷ 250 million
= 64%
e. No one gain or loss
Home equity is the difference between the current value of a house and what the buyer paid for it.
Answer:B
