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3 years ago

8

Assume that the risk free rate increases, but the market risk premium remains constant. what impact would this have on the cost

of debt

1 answer:

yKpoI14uk [10]3 years ago

8 0

Any choices for me? so that I can help you?

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Consider the market for loanable funds. Suppose that savers make deposits in savings accounts at banks. Initially, the interest

tiny-mole [99]

Answer:

A: The supply of loanable funds curve

B: left

C: Increase

Explanation:

If the tax rate on interest earned on savings deposits rises to 25% then the <u><em>supply of loanable funds curve</em></u> will shift to the <u><em>left </em></u>causing the equilibrium interest rate to <u><em>slide upwards (or increase). </em></u>

The supply curve for loanable funds slopes upwards from left to right. This means that when interest rates are high, lenders are more willing to lend more funds to investors and businesses. The intersection of the demand and supply curves for loanable funds creates the equilibrium interest rate.

Cheers!

8 0

3 years ago

Lorenzo Peterson was swimming in a swimming pool with a friend at an apartment complex. Lorenzo watched his friend swim to the

Naya [18.7K]

Answer: See explanation

Explanation:

1. Yes.

A design defect is when the design for a particular product brings about risk or injury which could have been averted if the design was done in another way.

With regard to the question, there is a design defect as we're informed that the drain cover becomes loose and we're further told that Sta-Rite did not install safety features on its drain pumps.

2. No.

Based on the scenario in the question, the ethical duty wasn't met by Sta-Rite Industries. They neglected the potential injury and harm that their design would cause. This means that they didn't perform their ethical duty well.

3. Yes.

In this case, Sta-Rite has to compensate the affected person and a punitive damage should further be added to whatever compensation had been put in place. This will serve as a way of making others also learn and always do the right thing and be safety conscious.

7 0

3 years ago

At December 31, the records of Nortech Corporation provided the following selected and incomplete data:Common stock (par $1; no

solmaris [256]

Answer:

The following balances have been worked out from the information given in question;

Explanation:

No. of Common stocks issued $200,000/22 9,091

Paid in capital-Common Stocks 9,091*(22-1) $90,909

No. of Treasury Stock 3,000

Treasury stock 3,000*20 $60,000

EPS =$147,750/(9,091 -3,000) $24

Retained Earnings ($155,000+$147,750-$49,250) $253,500

4 0

3 years ago

Which of the following are characteristics of public goods? Choose one or more: A. Individuals have an incentive not to pay for

noname [10]

Answer:

The correct answer is option A, option B, option D.

Explanation:

A public good can be defined as the good that a consumer can consume without reducing its availability to others. This non-rivalrous nature of public goods makes it difficult to exclude those who do not pay from consuming it.

This makes public goods non-excludable in nature. The consumers can not be exempted even if they don't pay, so people have an incentive to consume without paying.

3 0

4 years ago

How are progressive taxes and regressive taxes similar? Both charge high-income individuals more. Both are considered flat taxes

denpristay [2]

<span>Progressive taxes are those tax amounts that increase when the payer’s income also increases. On the other hand, regressive taxes are charged more to the low-income generating individuals. That said, the lower income a person have then, the higher is the amount of the tax that needs to be paid. The similarity of these two taxes is that they are both determined based on a person’s income. Thus, the answer is the third choice. </span>

3 0

3 years ago

Read 2 more answers