Answer:
e. a capital structure decision.
Explanation:
Capital structure refers to the combination of debts and equity used to finance business assets and operations. A capital structure shows how various sources finance a business. It is the combination of long-term loans, bonds, retained earnings, equity along with other sources of funds.
Issuing more shares affects the composition of the capital structure. It adds to the percentage of capital financed by equity. Issuing shares increases the number of shareholders. Therefore, it is a capital structure decision.
Answer:
The correct answer is (B) False.
Explanation:
Variable costs, as the name implies, differ with the level of production and are associated with the use of variable factors, such as labor and raw materials. Since the amounts of factors increase as production increases, variable costs increase when it does.
Answer:
B) raw material exporting
Explanation:
Based on the information provided within the question it can be said that this country most likely has a raw material exporting economy. This is a type of economy that focuses mainly on exporting and trading the raw materials which it's host country is rich in. This allows them to make money and import more necessary things that the country needs but can't produce.
Cost push inflation is caused due increase in cost of factor of production which leads to decrease in aggregate supply.
thus aggregate supply tend to shift leftward.
thus it is false
Answer:
13%
Explanation:
Given that,
Investment (100% equity) = $700,000
EBIT = $140,000
Tax rate = 35%
Earnings after tax:
= Investment (100% equity) + Earnings before interest and taxes - Tax (35%)
= $700,000 + $140,000 - ($140,000 × 0.35)
= $840,000 - $49,000
= $91,000
ROE = Earnings after tax ÷ Investment
= $91,000 ÷ $700,000
= 13%