1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
An indifference curve illustrates ... a) how consumers are indifferent about the location of their own consumption levels relati
Leya [2.2K]

Answer:

Option c) how a consumer might trade off different levels of consumption of each of two goods, while staying at the same utility level.

Explanation:

This is the very definition of an indifference curve. The points in an indifference curve are the combinations of the quantities (level of consumption) of two different goods which will produce the very same utility to the consumer. The consumer will perceive any of those combinations as having the same utility for him.  

For example, a usual graph of various indifference curves will look like the graph attached.

In this graph the combination of 2 pairs of shoes and 15 pants will be perceived as having the same utility as the combination of 5 pairs of shoes and 4 pants. Both are combinations in the same indifference curve, the green one, and the utility of any combination lying in that green curve will be rated the same: u = 1.

8 0
3 years ago
___________ typically refers to the promotion and sale of different versions of a media product across the various subsidiaries
Gelneren [198K]

Answer: Synergy

Explanation:

Synergy is described as the intercommunication in between two or more entities in order to construct a collaborative effect. This effect is known to be greater than the effort that would have be in place , if they were acting alone. In comparison to the cross media concurrence, the synergy takes place when the media commodity is being advertised across the other platforms. Example, a commodity being promoted in a movie.

5 0
3 years ago
Computing Income Taxes
Anastaziya [24]

Answer:

The​ corporation's tax liability is $ 228,820.

Explanation:

To calculate tax liability we first have to find net profit. Detail calculation is given below.

<u><em>Net profit Calculation</em></u>

Sales                                                                                 $ 3,130,000

cost of goods sold and the operating expenses          ($ 2,080,000)

Interest expense                                                              ( $ 377,000)

Net profit                                                                           $ 673,000

<u><em>Tax liability Calculation</em></u>

Income fall under Tax bracket of  34%  ($75,001 to ​$10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.

Tax liabilty = 673,000 * 34% = $ 228,820

​

5 0
3 years ago
Management of Carla Vista, Inc., is planning to raise $1,215,000 in new equity through a private placement. If the sale price is
Alexeev081 [22]

Answer:

Number of shares to be issued =  60,000  units

Explanation:

<em>A private placement involves the issue of new shares to a few number of individual and institutional investors. Unlike initial public offering, here the shares are not offered to the general public.</em>

The number of units to be issued is determined as follows

Units to be issued = Total capital to be raised / issue price per share

Number of units to be raised = $1215,000/$20.25 per share= 60,000  units

Number of shares to be issued =  60,000  units

3 0
3 years ago
Money placed in an insured bank account so that it will be available for future emergencies is referred to as __________.
lawyer [7]
It is referred to as a life savings account<span />
7 0
3 years ago
Read 2 more answers
Other questions:
  • Chapter 2 Discussion
    8·1 answer
  • Which of the items is most likely to be a complement to coffee?
    15·1 answer
  • 1. Companies like Uber, Lyft (one of Uber’s main competitors), and Airbnb (an online marketplace that enables people to lease or
    12·2 answers
  • An investment banker agrees to a best efforts offering of 2.5 million shares of Crew stock. The offer price is set at $35 per sh
    14·1 answer
  • Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550
    14·1 answer
  • The government of Semput plans the goods and services that Semput produces, the quantity of goods produced, and the prices at wh
    5·1 answer
  • The difference between role strain and role conflict is that role strain is about the competing demands imposed by ____, while r
    6·1 answer
  • How water utility company caters for their interests and what may happen if their expectations are not met.​
    8·1 answer
  • The basis of competition is freedom of ______ exercised in the pursuit of ______.
    12·1 answer
  • The starting point for preparing the operating activities section using the indirect method is ______. Multiple choice question.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!