Answer:
a. what is Suncoast's current debt ratio?
debt ratio = liabilities / equity = $400,000 / $600,000 = 0.67
b. what would the new debt ratio be if the machine were leased? if it is purchased?
if X-ray machine is leased, debt ratio = $400,000 / $600,000 = 0.67
if X-ray machine is purchased, debt ratio = $600,000 / $600,000 = 1
c. is the financial risk of the business different under the two acquisition alternatives?
yes, because a higher debt ratio means that the company is under a higher financial stress since it has more outstanding loans, which increases the financial risk.
Answer: Technology over the past 10 years has changed very much with more people having access to technology know it is easier for many people to communicate around the world which allows for globalization. This helps us trade more because of communication which allows to live in our world today.
Explanation: I got it right after writing this short paragraph so you should too good luck.
I believe the answer u are looking for is c......You can use the reference to support your claim. however be careful that you still use updated information as well
<span>Single-shot and repeating</span>
Answer:
c. Mix of funds used to finance the project.
Explanation:
Most of the time businesses don't have the required funds to invest in projects especially capital intensive projects. So businesses raise long term finance from various sources, for example, from capital markets through issuance of shares/stocks and from debt sources through raising long term loans and debt instruments like bonds.
Now each source of finance has a different cost to the business depending upon the likely risks associated with each source of finance and nature of business itself. Therefore, businesses strive to assign such a cost of capital that primarily recovers the cost of finance and generate surplus wealth for the business. So the decision of what cost of capital should be assigned to a project primarily depends upon the the mix of funds used.
Secondly, risk level of the project might somehow effect the required rate of return expected by shareholders and/or debt providers but may not be the primary consideration in this decision.
