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ipn [44]
3 years ago
6

As the volume of financing increases, the costs of the various types of financing will ________, ________ the firm's weighted av

erage cost of capital.
a. increase, lowering
b. increase, raising
c. decrease, lowering
d. decrease, raising
Business
1 answer:
charle [14.2K]3 years ago
7 0
<span>As the volume of financing increases, the costs of the various types of financing will increase, raising the firms weighted average cost capital. This happens because the firm will have to pay more in fees for their financing an that will be passed on to the firms weighted average cost capital.</span>
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Answer:

Equity Beta = 1.1413

Explanation:

The formula to find the asset beta is

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We will put the values given in the question in this formula

Asset Beta = 0.8

Tax rate = 0.36

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Equity = 0.60

0.8=Equity Beta/(1+(0.64)(0.40/0.60)

0.8=Equity Beta/1+0.4266

0.8=Equity Beta/1.4266

1.4266*0.8= Equity Beta

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AURORKA [14]

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<h3>What is meant by an economic downturn?</h3>

This is the term that is used to refer to the economic downturn that is experienced in a particular economy for a given period of time. This period would usually bring about the failure of the market with the producers and sellers making little gains in the market.

Hence we cam say that If the entire economy should take a downturn, the effect on the manufacturer would be to : offer rebates and incentives for customers who purchase washing machines.

Read more on economic downturn here:  brainly.com/question/7201254

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1 year ago
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babunello [35]

Answer:

The answer is A

Explanation:

An increase in an effective maximum legal price will do what to prices and quantities sold in a market?

A maximum legal price is an effective tool to control prices. Usually, the price is below its equilibrium. An increase in the maximum legal price will increase prices and the quantities sold will decrease. When prices go up, companies offer more quantities of a product, but consumers demand less.

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