Answer:
Factor market is the market where companies purchase the factors of production and resources that they utilise to produce goods and services. They buy the productive resources to make payments at factor prices. Factor maker is also called input market. It is different from product market in which the households are buyers and businesses are sellers. The factor market is opposite of this.
Answer:
A. We can use Modigliani and Miller's first proposition to derive an explicit relationship between leverage and the equity cost of capital.
Explanation:
Their main conclusions can be summarized as: In the absence of taxes, firm capital structure is irrelevant. With taxes, a firm's cost of capital can be lowered through issuing debt. This highlights the importance of debt as a tax shield.
Modigliani and Miller's conclusion went against the common view that even with perfect capital markets, leverage would affect a firm's value.
A person who builds their own business
Answer:
the cost per yard is $5
Explanation:
The computation of the cost per yard is as follows;
= Total cost for all of the fabric ÷ total number of yards
= ($60) ÷ (6.5 yards + 5.5 yards)
= $60 ÷ 12 yards
= $5 per yard
hence, the cost per yard is $5
We simply divided by the Total cost for all of the fabric from the total number of yards so that the cost per yard could come
Hence, the same is to be relevant
Answer:
The indifference point is $17,000
Explanation:
Giving the following information:
Location:
Alpha Ave.:
Fixed Costs= $ 5,000
Variable costs= $ 200 per person
Beta Blvd.:
Fixed costs= $ 8,000
Variable costs= $150 per person
We need to find the indifference point.
Alpha= 5000 + 200*x
Beta= 8000 + 150*x
5000 + 200x=8000 + 150x
50x=3000
x= 60
