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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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helene, corp. reports a net operating loss in year 1 of $20,000. in year 2, the company reports income of $10,000. what amount o
gtnhenbr [62]

$8,000 (80% limitation) amount of year 2 income may be offset by the carryforward of the year 1 net operating loss

When a business' running costs are higher than its gross income, it experiences an operating loss (or revenues in the case of a service-oriented company).

Operating profit is the profit a business makes before taxes and interest. In the same manner as cost of goods sold, selling, general, and administrative expenditures are, interest and taxes are not regarded as operating costs. In many cases, businesses make enough money to pay their costs and turn a profit.

To know more about operating refer here:

brainly.com/question/15080057

#SPJ4

3 0
1 year ago
Building, keeping, and growing profitable value-laden relationships with all customers of a company is called ________.
Brilliant_brown [7]
Customer relationship management is my guess

Hope it helped!
5 0
3 years ago
Which of these factors would be considered when making a location decision at the region/community level?
Delicious77 [7]

Answer: E .

The three most important reason'sfor a firm to locate in a particular region are,RAW MATERIALS

PERISHABILITY

TRANSPORTATION COST

Hope it's correct,

8 0
3 years ago
All of the following are ways to calculate different versions of ROI​ except: A. Return on sales x investment turnover B. Income
Virty [35]

Answer:

The answer is D

Explanation:

The formula - Revenues​ / Total Assets is not one of the ways to calculate Return on Investment (ROI)

Return on Investment (ROI) is a ratio

net profit to cost of investment(total money invested the project or compnay)

The numerator must be profit while the denominator must be related to cost of Investment.

In all of the options, it is only option D that has revenue(sales) as the numerator which makes it automatically wrong.

7 0
3 years ago
Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places s
yulyashka [42]

Answer:

d. $672.41 per service call

Explanation:

The computation of the activity rate for servicing goods is shown below:

= (Total servicing good cost) ÷ (Total service calls)

= $195,000 ÷ 290

= $672.41 per service call

The total service call would be

= JIT distributors + Non-JIT distributors

= 200 + 90

= 290

All other information which is given is not relevant. Hence, ignored it

6 0
3 years ago
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