Answer:
b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing. 
Explanation:
A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.
In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money). 
Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.
 
        
             
        
        
        
Answer:
<em>D. To allow consumers and producers to make their
</em>
<em>own decisions</em>
Explanation:
A <em>free-market system</em> is the market form determined by free market forces of demand and supply. 
No government intervention takes place in this form of market as in a centrally planned economic system. This non- intervention of the government prevents <em>economic distortions</em> in the system, which is good for the market.
In a <em>free market system</em> the forces of demand and supply, decide the price of the goods and thereby the output adjustments. The consumers are free to decide the demand and producers are free to decide the product the supply of goods.
Hence, it can be said that <em>the purpose of a free-market system is to allow consumers and producers to make their own decisions.</em>
 
        
                    
             
        
        
        
Answer: d. 8.0%
Explanation:
The Stated Annual Rate of Interest on a bond refers to the coupon rate which is the amount that the company promises to pay on the bond pay period. 
Looking at the question, the company is paying $400 every 6 months on the $10,000 bonds . The interest therefore is;
= 400/10,000
= 4%
Company pays 4% on the bonds every 6 months. 
This 4% should be stated in annual terms so;
= 4% * 2
= 8%. 
 
        
             
        
        
        
Answer: $332,540
Explanation: find attached my solution in the document below. 
NB : note that the Insurance after equipment placed in service and Insurance for the first year of operations was not added because these are to be termed expenses to be deducted in the P & L account.