Answer:
The sandwich approach
Explanation:
The sandwich approach -
It is referred to as an unilaterally controlling strategy .
In this type of strategy , the feedback is given in the form of a sandwich , where the positive feedback is wrapped inside the negative feedback , is referred to as the sandwich approach .
i.e. ,
The person starts with negative points and then add new positive points and finally ends with the negative points .
Hence , from the given scenario of the question ,
The correct answer is the sandwich approach .
Answer:
To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.
Explanation:
Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments, they are used to calculate the risk free rate.
When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.
The answer would be 50%.
I hope this helps!
Answer: See Explanation
Explanation:
First, we have to calculate the worth of factory A which will be:
= Cash flow / Cost of capital
= $19300 / 3.5%
= $19300 / 0.035
= $551428.57
= $551429
Cost of capital of Factory B = Cash flow / Worth
= $19,900 / $545,000
= 0.0365
= 3.65%
Cost of capital of Factory A = 3.5%
Cost of capital of Factory B = 3.65%
Worth of factory A = $551429
Worth of Factory B = $545,000
Therefore, factory A is more valuable than Factory B and Factory B is more risky than Factory A.
Buy what u need when u need it not what u want when u want my dad always said