A breakdown in bargaining happens when one party repeatedly holds our for a better deal. In this cases, private solutions to this kind of externalities is deemed necessary. Though bargaining is quite common among transactions made by economists, it cannot be helped that there are certain problems that arise from this.
Answer:
The solution as per the given problem is provided below throughout the explanation portion below.
Explanation:
The given values are:
Debt issued,
= 120
Pretax earnings,
= 80
Tax,
= 35%
All equity firm,
= $320
Number of common stock,
= 50
(a)
Balance sheet before the debt issue's announcement will be:
<u>Assets </u><u> 320</u>
<u>Debt </u><u> 0</u>
<u>Equity </u><u> 320</u>
then,
The total will be "320".
(b)
The per share price will be:
= 
= 
= 
or,
After tax, the net income will be:
= 
= 
= 
= 
(c)
The return on equity will be:
= 
= 
= 
or,
= 
(%)
Answer: Forward Integration
Explanation:
Forward integration is a process where a company takes over the control of another company that is further along in the value chain so that it might be able to sell or distribute is goods more effectively. For example, an oil company taking over a petroleum products company.
In this scenario, the Brazilian company purchased a huge part of a company further along in distribution in order to facilitate better sales so this is forward integration.
(B) To verify the factual accuracy investment bankers review an equity research report prior to publication.
<h3>
What are investment bankers?</h3>
- A financial institution's investment banker is largely responsible for obtaining cash for firms, governments, or other entities.
- The investment banking industry is attractive because it pays handsomely.
- Investment bankers must have great verbal and writing communication skills, as well as the ability to work long and demanding hours.
- Prior to publication, investment bankers analyze an equities research report to ensure its accuracy.
- Large, complex financial transactions are facilitated by investment bankers.
- These transactions may include arranging for a client's acquisition, merger, or sale.
- Another duty of investment bankers is to issue securities in order to raise capital.
As the description itself says, prior to publication, investment bankers analyze an equities research report to ensure its accuracy.
Therefore, (B) to verify the factual accuracy investment bankers review an equity research report prior to publication.
Know more about investment bankers here:
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Complete question:
Under what circumstances may investment banking personnel review an equity research report prior to publication?
A) To prevent a recommendation that may alienate a client company
B) To verify its factual accuracy
C) Under no circumstances
D) To ensure a favorable recommendation
Answer :
. a proposed firm's goals, strategy for achieving them, and standards for measuring success.
Explanation:
A business plan is a proposed firm's goals, strategy for achieving them, and standards for measuring success.
The business plan outlines how the firm will meet it set goals and objectives and the strategy it will use in achieving them. It must also include how the firm will measure it's success.
It is a written orderly statement of the firm's goals ,methods of achieving the set goals and how it will measure its achievement.
Business plan gives the organisation a sense of purpose.
