Total cost = $3 / gallon (150 miles / (25 miles/gallon)) =<span> $18</span>
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:
Explanation:
The deductive or direct approach requires that the presenter state the main topic or conclusion and them provide details or explanation.
Answer:
If alpha is 0.2 then 92.6units
If alpha is 0.3 then 91.4units
Explanation:
The calculation can be done by the following formula
F = F + alpha (A-F)
Where
F = Forecast value
A= Actual value
Alpha = exponential smoothing constant
If alpha is taken 0.2
F = 95 + 0.2 ( 83-95)
F = 92.6
If alpha is taken 0.3
F = 95 + 0.3( 83-95)
F= 91.4
