The factors that increase for equity holders when the amount of leverage increases is d. risk.
<h3 /><h3>What does an increase in leverage lead to?</h3>
When there is an increase in the leverage that a company holds, the worry that the company will not be able to pay off the debt also increases.
This leads to more risk and volatility in company stock which would be felt by equity holders.
Remaining part of question:
a. inevitability.
b. certainty.
c. yield-to-maturity
d. risk.
Find out more on the effects of risk on stock at brainly.com/question/11645484.
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Answer:
b. Credit to Fair value adjustment for $5,000
Explanation:
Particulars Amount
Beginning balance of fair value adjustment $20,000
Less: Unrealized gain on Dec 31, year 3 <u>$15,000</u> ($515,000-$500,000)
Credit to Fair value adjustment <u>$5,000</u>
So, Credit to Fair value adjustment for $5,000 will be included in the related journal entry dated December 31, Year 3.
Answer:
The company's degree of operating leverage is closest to $840000
Explanation:
Selling price per unit = Sales revenue / No. of bags sold
= $1560000/200000 bags = $7.8 per bag
Variable cost per unit=Total variable expenses/No. of units
= $840000/200000 units = $4.2 per bag
Company’s unit contribution margin = Selling price per unit-Variable cost per unit
= $7.8 per unit-$4.2 per unit = $3.6 per unit
Company's degree of operating leverage = Variables manufacturing expense + Variable selling and administrative expense
=$660000+$180000 = $840000
The answer is C
“There’s nothing we can do about it”
A,B and D have a positive tone.
But C sounds kinda mean
What kind of business organization will best serve his or her interests.
All of the other decisions are very important, but unless you know what type of organization you want it will be hard to make other more important decisions about the business.
