Answer:
A) Company A is the one that is financially leveraged.
Where there is the presence of debt in the capital structure of a firm, that firm is said to be Financially leveraged.
B) A is true.
A company's return on equity or expected returns increases because the use of leverage increases stock volatility. Volatility increases its level of risk which in turn increases returns. This happens only if the company is operating an ideal level of financial leverage.
On the other hand, however, but excessive debt can increase the risk of default and can lead to low returns or even bankruptcy.
Cheers!
Answer:
d) tax the manufacturing of cigarettes
Explanation:
Taxation imposed by government on the manufacturing of a commodity increases the cost of production and shifts the supply curve of such commodity inward, that is to the left. When the government imposes tax on the manufacturing of cigarettes, the cost of producing cigarettes will increase and that will reduce the supply of cigarettes all things being equal.
I believe the answer is: A. Cars typically lose the most value in the first year after purchase
As the miles usage in cars increase, the quality of the machine tend to deteriorate, which would lead to the decrease in the cars' value. On top of that, the new model that given by car companies tend to possess better technology/design. On average, cars tend to lose 15 - 25 % in value during the first year.
You can find them in the <span>Readers' Guide to nPeriodic Literature.
Hope this helps..</span>
