Answer: The net effect of additional debt on WACC is uncertain.
Explanation:
Weighted Average Cost of Capital (WACC) refers to the rate of return that a company is paying it's capital providers on average be it debt holders or shareholders.
Adding additional debt to the mix effects the WACC in an uncertain way due to the different ways the WACC could react. For example, adding additional debt decreases the after-tax cost of debt because debt is tax deductible which means that more money can flow to shareholders so that reduces the cost of equity. At the same time however, Additional debt can increase the risk of bankruptcy meaning that the before tax cost of debt rises which also increase the WACC.
The effect can swing either way thereby making it uncertain.
Answer:
Explanation:
These three areas have been key because they all complement one another in order to help the company achieve its organizational goals. Technology helps automate all of the data and processes that the company deals with on a daily basis. Employee retention focuses on keeping the employees and making sure that the best employees remain within the company, therefore making sure that the company will perform better than the competition. Lastly, HR development focuses on creating new ways of making the employees happy and making sure that all departments are as efficient as possible. All of which push a company past any barriers and towards achieving their goals.
Answer:
The free rider problem
Explanation:
The free rider problem is a form of market failure in economics. It means that there's an insufficient form of commodity distribution in which some individuals are allowed to consume more than their fair share of the shared resources or pay less or not at all than the fair share of cost. In this case, tomatoes are overgrown and the common plot is over used, thus making individually owned plot perform better than the common plot. The whole free rider scenario occurs when those who benefits from communal services and goods do not pay for them or underpay for them and over use them.
Answer: Rising food prices affect macroeconomic stability as well as the welfare of net buyers of food. This has a significant impact on poorer households that use a larger proportion of income for food.
Explanation:
I dog year = 7 human years
13 dog years = 7 x 13 = 91 human years (Wow ... that is very old! Good dog.)