Answer:
2. more assets are debt financed
3. the ratio of debt to equity increases
Explanation:
We know
The formula of the debt ratio is presented below:
Debt ratio = Total debt ÷ Total assets
where,
Total debt would be
= Current liabilities + Long term debt
And the total assets = Total debt + owner's equity
So, if the debt ratio is increased so it impacted the more assets for debt-financed plus the debt to equity ratio is also increased.
Answer:
No, I don’t think this would be a good loan to make. Even if your sister means the world to you and you believe giving her that amount of money must be for a good cause… you should find out what the loan is for. After all, your sister is a 9 year-old.
Hope it helped! Have a good day.
Answer:
False. The author will NOT prefer a higher book price than will the publisher.
Explanation:
It is evident from the diagram -please check the attached image to the exercise- that the author wants to set a lower price than the publisher (to sell the higher quantity)
.
Answer:
A
Explanation:
the price cap is form of price ceiling
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Effects of a binding price ceiling
1. It leads to shortages
2. it leads to the development of black markets
3. it prevents producers from raising price beyond a certain price
4. It lowers the price consumers pay for a product. This increases consumer surplus
Answer:
False. This is because 1 is an odd number and that it is too low in value.