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noname [10]
2 years ago
8

Volatility or Blank______ increases for equity holders when leverage increases. Multiple choice question. inevitability certaint

y yield-to-maturity
Business
1 answer:
netineya [11]2 years ago
8 0

The factors that increase for equity holders when the amount of leverage increases is d. risk.

<h3 /><h3>What does an increase in leverage lead to?</h3>

When there is an increase in the leverage that a company holds, the worry that the company will not be able to pay off the debt also increases.

This leads to more risk and volatility in company stock which would be felt by equity holders.

Remaining part of question:
a. inevitability.

b. certainty.

c. yield-to-maturity

d. risk.

Find out more on the effects of risk on stock at brainly.com/question/11645484.

#SPJ1

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At a price of $1.00, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.20, the coffee shop w
Julli [10]

Answer:

2.2

Explanation:

The formula for calculating price elasticity using the midpoint method is:

midpoint method = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}

midpoint method = {(150 - 100) / [(150 + 100) / 2]} / {(1.20 - 1) / [(1.20 + 1) / 2]}

midpoint method = [50 / (250 / 2)] / [0.20 / (2.20 / 2)] = (50 / 125) / (0.20 / 1.1)  

midpoint method = 0.4 / 0.19 = 2.2

The advantage of using the midpoint method to calculate price elasticity is that we can calculate the price elasticity between two points, and it doesn't matter if the price increases or decreases.

If we calculate price elasticity using the single point formula:

price elasticity = % change in quantity supplied / % change in price = 50% / 20% = 2.5

7 0
3 years ago
On March 1, Bartholomew Company purchased a new stamping machine with a list price of $77,000. The company paid cash for the mac
nikdorinn [45]

Answer:

$81,020

Explanation:

The cost of the asset includes the cost of purchase less any given discount or tax returns and the addition of other cost incurred in making the asset available for use.

As such, the cost of the machine

= $77,000 - (5% * $77,000) + $2,000 + $4,520 + $1,350

= $81,020

The routine maintenance cost is not a part of the asset but an expense in p/l.

8 0
3 years ago
Name three factors that determine a good’s or service’s elasticity.
pav-90 [236]

Answer:

Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price.

Explanation:

4 0
3 years ago
Read 2 more answers
Which is an example of an automatic stabilizer? As real GDP decreases, income tax revenues: 
A. Increase and transfer payments d
oee [108]

Answer:

The correct answer is B. Decrease and transfer payments increase.

Explanation:

Automatic stabilizers soften cyclic fluctuations through their effect on aggregate demand. Indeed, when the economy is in a contractive or recessive phase, the negative or very reduced economic growth generates a decrease in fiscal revenues while higher unemployment increases public expenditures. Consequently, private sector disposable income decreases less than GDP does, thus limiting the contractual effect on aggregate demand, growth and employment. Therefore, the budget balance worsens in this phase by stimulating the economy and facilitating economic recovery. In the opposite sense, in times of expansion, automatic stabilizers generate higher public revenues and lower spending, which allows to increase the public surplus - or reduce the deficit - avoiding excessive expansion that could have negative effects on cycle volatility and price stability.

5 0
3 years ago
A gift shop sells 2000 boxes of scented candles a year. The ordering cost is $100 for scented candles, and holding cost is $10 p
Gekata [30.6K]

Answer:

Minimun cost: $2000

Explanation:

We solve for the optimal order size using the

Economic Order Quantity:

Q_{opt} = \sqrt{\frac{2DS}{H}}

<u>Where: </u>

D = annual demand = 2,000 boxes

S= setup cost = ordering cost = $ 100

H= Holding Cost = $10.00

Q_{opt} = \sqrt{\frac{2(2,000)(100)}{10}}

Q_{opt} = \sqrt{40,000}

EOQ 200

It should order: 2,000 demand / 200 order size =  10 times

At a cost of 1,000 dollar (100 units x $ 10)

It will face an average inventory of 100 units thus holding cost:

100 units x 10 dollar per unit = 1,000

Total cost: 1,000 + 1,000 = 2,000

6 0
3 years ago
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