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3 years ago

Which of the following statements is CORRECT?

1 answer:

6 0

Under normal conditions, a firm's expected ROE would probably be higher if it financed with short-term rather than with long-term debt, but using short-term debt would probably increase the firm's risk.

Option A

Explanation:

In business finance, the productivity of an undertaking, also defined as net assets or asset minus debt, is a calculation of its viability with respect to equity.ROE is a calculation about how well funds are used to produce increases in profits.

Companies are able to fund themselves with stocks and bonds. A business will raise its investment value by increasing the number of debt capital compared to its equity capital. There was a misunderstanding. Then you see that the new company has a better ROE because of its financial resources as you split the net income per shareholder's capital stock.

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Ghana is the largest exporter of cocoa, while Netherland is the largest importer of cocoa. How have the two participating countr

VladimirAG [237]

I believe the correct answer from the choices listed above is the second option. The two participating countries were benefited by global trade in terms of economic growth in both the countries. Hope this answers the question. Have a nice day.

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3 years ago

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A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be

pashok25 [27]

Answer:

NPV =$ 60,311.80

Explanation:

The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

0 1 2 3

Operating cash flow 136,000 136,000 136,000

Initial cost (274,000)

Working capital (61,000 ) 61,000

Salvage value 15000

Net cashflow (335,000) 136,000 136,000 212,000.

PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

= 395,311.80

NPV =395,311.80 -335,000

=$ 60,311.80

3 0

3 years ago

Exam early childhood education

Rashid [163]

Idk whats your qwestion

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3 years ago

Alliance Company budgets production of 35,000 units in January and 39,000 units in the February. Each finished unit requires 4 p

harkovskaia [24]

Answer:

$506,800

Explanation:

The calculation of budgeted materials cost is shown below:-

For computing the budgeted materials cost first we need to find out the total materials for production and materials to be purchased which is here below:-

Total materials for production = Budgeted production × Pounds of raw material per unit

= 35,000 × 4

= 140,000

Materials to be purchased = Total materials for production + Ending raw materials inventory - January 1 inventory

= 140,000 + (39,000 × 4 × 30%) - 42,000

= 140,000 + 46,800 - 42,000

= 186,800 - 42,000

= 144,800

Budgeted materials cost for January = Materials to be purchased × Cost per pound

= 144,800 × $3.50

= $506,800

6 0

3 years ago

Read 2 more answers

U.S. GDPa. includes production of foreigners working in the U.S. but excludes production by U.S. residents working in foreign co

LuckyWell [14K]

Answer:

The correct answer is letter "A": includes production of foreigners working in the U.S. but excludes production by U.S. residents working in foreign countries.

Explanation:

The Gross Domestic Product or GDP represents the overall market value of all the goods and services a country produces. The GDP measures the size of the economy and it is determined by the following formula:

GDP = C+ G + I + NX

Where:

C = Private consumption

G = Government spending

I = Businesses' capital spending

NX = Net exports (exports-imports)

Labor is part of the GDP as well. It could be included in government spending or capital spending. A nation's labor productivity is the sum of all the labor force production within the country regardless of the nationality of the workers. Citizen's productivity working abroad will be included in the GDP of the country where they work.

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3 years ago