Answer:
The correct answer is True.
Explanation:
Financial leverage is the use of debt to acquire assets that generate more assets. It is a concept used in operations where the investment that is made is greater than the money that is actually available, so that with a lower amount of money a greater possibility of profit or loss can be achieved. Therefore, it implies a higher risk.
The main instrument for leverage is debt, which allows you to invest more money than is available thanks to what has been borrowed. But you can also achieve financial leverage through many other financial instruments, such as derivatives, futures or CFDs.
We can find three types of financial leverage:
- Positive leverage: this type of leverage occurs when the economic profitability (return obtained from assets) that occurs with the leverage operation is higher than the cost of the debt, that is, generally at the interest rate paid at bank for the loan.
- Neutral leverage: occurs when the economic return is equal to the interest rate paid on the loan. Employment or increased indebtedness does not cause variation in economic profitability.
- Negative leverage: it occurs when the economic profitability is lower than the interest rate that is being paid for the debt or for the funds obtained in the loans. In this case, obtaining the debt is unproductive.
Answer:
- Gain = $271,310
- Net reduction in retained earnings = $105,690
Explanation:
Gain = (Ivanhoe market price - Purchase price) * Number of shares issued as property dividend
Purchase price = 130,000 / 16,000
= $8.13
Number of shares issued as property dividend = 130,000 shares of Concord / 10
= 13,000 Ivanhoe shares
Gain = (29 - 8.13) * 13,000
= $271,310
Net reduction in retained earnings:
= Dividends payable - Gain
= (13,000 * 29) - 271,310
= $105,690
Answer: Choosing one particular action for a situation
randomly
Explanation: A pure strategy is used to define the actions of the user in the particular situation. In such case, the user choose one alternatively from two or more and do not mix them.
Whereas, in a mixed strategy the user chooses its action from a number of alternatives in a random manner and not on the basis of any predetermined criteria as in the case of pure strategy.
Answer:
Check the explanation
Explanation:
From the below attached image Crow Foot Notation, the relationship between Super class and Sub class is shown clearly, i.e
Employee is super class, and the different types of employees are represented by specialization of three types, there are Salary, Hourly and Contract based. Again the Salary based employee is super class of Sales Employee, representing partially participation.
From the below attached image notation, "d" represents distinct i.e distinct employees of type Salary, Hourly and contract.
And "O" represents, Overlapped, means same object is aggregating two specific outcomes which are overlapped.
They are Salary based and Sale wages based employee.
