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ANTONII [103]
3 years ago
6

Other things held constant, an increase in financial leverage will decrease a for-profit business’s market risk as measured by i

ts beta coefficient.
True or False?
Business
1 answer:
vaieri [72.5K]3 years ago
8 0

Answer:

False because if the financial leverage is growing then the Financial risk will start growing and this increase in the financial risk will increase the beta. Furthermore this increase in financial leverage is also responsible for the increase in the Bankruptcy Risk.

Remember the beta factor is directly proportional to market risk (Systematic Risk) this means if the market risk is increasing then the beta will also increase and if the market risk is decreasing then the beta is decreasing. This is evident from the fact that people require more returns from their investments in Asia than USA. The reason is that the Market risk in Asian countries is more than United states of America.

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results from the lessening of trade barriers and the increased flow of goods and services, capital, labor, and technology around
daser333 [38]

Answer:

A.Economic integration

Explanation:

Economic Integration is a trade agreement that exists among countries within the same geographic location which includes reduced or removing tariffs and other trade barriers so that there will be free flow of certain goods and services coupled with other factors of production within the region. This is important because it helps to reduce the cost involved in trade and making goods and services available within member state. This agreement is also known as regional integration because it exist between nations in the same region. For example economic integration between West African States.

5 0
4 years ago
Patricia Nall was approved for a $3,000, two-year, 11 percent loan with the finance charges figured using the discount method. H
Luba_88 [7]

Answer:

$2,340

Explanation:

The computation of cash received from this loan is shown below:-

cash received from this loan = Approved amount - (Approved amount × Two year × Percentage of loan )

= Approved amount - ($3,000 × 2 × 11% )

= $3,000 - ($3,000 × 2 × 0.11 )

= $3,000 - $660

= $2,340

Therefore, for computing the cash will Patricia receive from this loan we simply applied the above formula.

4 0
3 years ago
The goals of labor unions differ from those of management because employers want more profits and labor wants: Multiple choice q
AnnZ [28]

The goals of labor are such that they want better pay and working conditions.

<h3>The ultimate goal of workers/labor</h3>

A business is in operation to make a profit, likewise, labor or workers work to the end of being paid for the services rendered.

In addition to good pay, labor also requires good perks like health cover, safe and secure work conditions, and the environment.

Learn more about Labour here:

brainly.com/question/98074

#SPJ1

8 0
3 years ago
ATech has fixed costs of $7 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year ear
Triss [41]

Answer: Degree of Operating Leverage

A Tech = 2.75

Z Tech = 3

Explanation:

As defined in question itself,

Degree of Operating Leverage = 1 + \frac{fixed\ cost}{Profit}

As here, it is provided that profit for both the companies are same amounting $4 million.

Although the fixed cost differ by $1 million.

A Tech Degree of operating Leverage = 1 + \frac{7,000,000}{4,000,000} = 2.75

Z Tech Degree of Operating Leverage = 1 + \frac{8,000,000}{4,000,000} = 3

This clearly demonstrates that A Tech will reach its break even faster than the Z Tech as the ratio of fixed cost to variable cost is lower in A tech in comparison to Z Tech.

5 0
3 years ago
Why are public goods important
umka2103 [35]

Answer:

Because it can be use by many people

6 0
3 years ago
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