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ICE Princess25 [194]
3 years ago
8

What is your reaction to Harriet's suggestion of using the cost of debt only?

Business
1 answer:
Ahat [919]3 years ago
8 0

Answer:

No, it is a bad idea to use only the cost of debt

Explanation:

Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.

Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.

When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.

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Given a constant rate of growth of real gdp, what would cause a fall in real gdp per capita?
docker41 [41]

Answer:

Increase in population

Explanation:

When GDP is growing at a constant rate, the only way that real GDP per capita falls is when population growth rate is higher than that of GDP growth rate.

7 0
1 year ago
F ZMW 51,000 cash is paid to buy land, the land is reported on the buyer's balance sheet at ZMW 51,000.
Tomtit [17]

Answer:

This is made due to the application of the cost principle or historical cost concept.

Explanation:

The cost principle or historical cost concept states that the assets, equities, and liabilities are required to be recorded on the financial records on the basis of their original cost. Thus as the cash paid is ZMW 51,000, the same is required to be recorded on the balance sheet of the buyer.

5 0
2 years ago
Rachel is on her way to an interview for the position of a project manager. She is trying to prepare for this interview by analy
Lubov Fominskaja [6]

Answer:

Leadership.

Negotiation.

Scheduling.

Cost Control.

Risk Management.

Contract Management.

Critical Thinking.

Communication.

7 0
3 years ago
Approximately how much of what employees know about their work is attributable to formal organizational training?
sesenic [268]

Options: A. 70% B.30% C.10% D.50%

Answer:10%

Explanation:Formal training is a type of training program conducted by formal Organisations where the employees are assembled in a classroom and are trained by professionals.

Most of the trainings taking place in Organisations are informal which doe not require any classroom activities,informal trainings are trainings which are that does not require any proper or well laid down procedures they are usually done ON THE JOB, or through APPRENTICESHIP etc.

5 0
3 years ago
What is an introductory APR and how does it compare to a standard APR?
Assoli18 [71]

Answer:

The introductory APR is the interest rate that the loan or credit card starts out at..(usually a promotional tool)and the standard rate is what the rate normally is.. the set rate

Explanation:

6 0
3 years ago
Read 2 more answers
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