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raketka [301]
3 years ago
11

A firm creates value by?

Business
1 answer:
djverab [1.8K]3 years ago
6 0

Answer:

Paying more cash to its creditors and stockholders than the amount it received from them (1)

Explanation:

Stockholders are the primary owners of the company who have invested their money in the company's shares i.e equity holders and expect a reasonable returns higher than their investment.

Creditors are money lenders like banks i.e debt holders who have given loan or bank overdraft to the company and expecting the company to pay back at an agreed date with interest.

A firm creates value by being able to invest money sourced from various investors into a viable project that guaranteed greater returns than the weighted average cost of capital.

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The Corner Market has decided to expand its retail store by building on a vacant lot it currently owns. This lot was purchased f
marysya [2.9K]

Answer:

a. The current market value of the land

Explanation:

An expansion project costing plays a huge role. According to relevant cost, all irrelevant cost in the business should not be considered while analyzing a project. In the past, cost incurred in purchase of the land and its improvement is sunk cot, hence these expenditure ares irrelevant while analyzing the expansion project. The only cost which is to be considered is current market value of the land.

5 0
3 years ago
quizlet Governments implement Blank______ trade policies that are designed to make it difficult for imports to enter a country.M
lilavasa [31]

Governments implement Administrative trade policies that are designed to make it difficult for imports to enter a country.

<h3>What is Administrative Trade Policies?</h3>

Administrative trade policies are bureaucratic rules designed to make it difficult for imports to enter a country. These are rules and regulations made by the government to control the entry of particular products into the country.

<h3>What is Trade policy ?</h3>

Trade policy is the set of agreements, regulations, and practices by a government that affect trade with foreign countries. Each nation determines its own standards for trading, including its tariffs, subsidies, and regulations.

Trade policies have a significant effect on the international economy and on financial markets. They affect exchange rates, the availability of goods, and the prices that people pay for them, among many other economic factors.

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brainly.com/question/24966568

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6 0
2 years ago
funds are created when individuals or organizations contribute resourcesto a trust with the agreement that principal and/or inco
Eva8 [605]

Funds are created when individuals or organizations contribute resources to trust with the agreement that principal and/or income will be used to benefit individuals or private organizations in a Private-Purpose trust.

A funding fund is a manner of investing money among different traders so one can enjoy the inherent benefits of operating as part of a group such as decreasing the dangers of the funding by a massive percentage.

A fund is a pool of money set apart for a particular reason. The pool of cash in a fund is frequently invested and professionally controlled which will generate returns for its traders. A few not unusual styles of price range include pension budget, coverage funds, foundations, and endowments.

The primary assets of investment are retained profits, debt capital, and fairness capital. Groups use retained earnings from enterprise operations to amplify or distribute dividends to their shareholders. Corporations increase the budget by means of borrowing debt privately from a bank or via going public (issuing debt securities).

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8 0
2 years ago
When the supervisor-to-subordinate ratio exceeds manageable span of control, additional Teams, Divisions, Groups, Branches, or S
vova2212 [387]

Answer:

Modular organization

Explanation:

A modular organizational structure refers to a business that can be separated and recombined to work more efficiently.

The key is to determine which modules or departments of your business are effective and can be outsourced to create a more adjusted organization

3 0
3 years ago
Read 2 more answers
Security A has an expected rate of return of 12% and a beta of 1.1. The market expected rate of return is 8%, and the risk-free
natali 33 [55]

Answer:

The alpha of the stock is 3.7%.

Explanation:

Alpha is the abnormal or additional return expected or received on a stock in excess of the required rate of return for such a stock as calculated by the Security market line or Capital asset pricing model equation.

We first need to calculate the required rate of return for such a stock and then deduct that rate from the expected rate of return to reach at alpha or the abnormal return.

  • Required rate of return (r) = 0.05 + 1.1 * (0.08 - 0.05) = 0.083 or 8.3%

The abnormal return or alpha for such a stock is,

  • Alpha = 12% - 8.3% = 3.7%
8 0
4 years ago
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