Answer:
False because the interest rate depends upon the economic conditions of the country and also on the risk associated with the company, its capital structure and credit risk. Yes it does depend on the finance required to fund the projects and investments but it does not relates to the interest rate. Because provision of large amounts of funds is riskier for the lenders, plus there are many other factors like duration of loan, profitability, etc that measures the creditworthiness of the client which tells us whether or not the client is able to payback the loan along with its interest or not. So the statement is false.
Answer:
e. None of them
The company will be $102,000 better off over the 5 year period if it replaces the old equipment
Explanation:
The computation of given question is shown below:-
Net purchase value = New machine cost - Market value
= $100,000 - $12,000
= $88,000
Net operating expenses = Sales revenue - operating expenses × Years
= $10,000 - $18,000 × 5
= -$8,000 × 5
= -$40,000
Total expenses = Net purchase value - Net operating expenses
= $88,000 - $40,000
= $48,000
Old machine operating cost = operating expenses associated with the old machines × Years
= $30,000 × 5
=$150,000
Better off over old machine if new machine is installed = Total expenses - Old machine operating cost
= $48,000 - $150,000
= $102,000
The company will be $102,000 better off over the 5 year period if it replaces the old equipment.
Answer:
The correct option is C
Explanation:
Closed end fund is the fund which is of pooled assets and increases or raise the fixed amount of capital by the procedure of IPO (stands for Initial Public Offering) and then the shares are listed for the purpose of trade on the stock exchange.
When the investors wish to liquidate (means cash), the holdings in fund which is closed end, might sell the shares on the secondary market or open market.
Answer:
False
Explanation:
The internal users of financial information are those people with an organisation that makes use of financial information.
they include :
- The board of directors
- Employees
- Managers.
The external users of financial information are those who aren't within an organisation that makes use of financial information.
They include :
- Investors
- Lenders
- Government
- Regulatory bodies
External users of financial information use financial information in making decisions of whether to invest in or lend to a company
The rectangle with 6 rows has 30 people, and the rectangle with 9 rows has 45 people.
6x5=30, 9x5=45, 30+45=75 people.