Answer:
III) Equity investors would like the firm to shift toward riskier lines of business.
Explanation:
Financial distress refers to the situation at which the organization not able to generate the profit as it is not able to meet or pay the financial debts. This occurs when the fixed cost is high, liquid assets leads to be sensitive in nature which results in downturns of an economic system
Hence, the third option is correct as the firm would shift to the riskier business lines
Answer:
This type of trade is called Arbitrage trading.
Explanation:
Arbitrage trading a simultaneously selling and buying of financial instruments or entering into various transactions at the same time in at least two different market to make money through the exploitation of price differences.
In this case, because there is price differences between the borrowing market in Japan and deposit market in Australia, the trader can earn profit by borrowing in Japan in yen, converting the amount into AUD and deposit it in Australia to earn 4% per annum profit.
Such scenario exists as a result of market inefficiency. As more and more trader does the same trading, borrowing cost in Japan will be higher ( due to higher demand) and deposit cost in Australia will be lower ( due to higher supply). In the end, market will be efficient and such trading will not lead to any profit gained from price differences.
Answer:
D
Explanation:
I'm not positive, however it does add up to a realistic value.
Answer:
$111
Explanation:
Purchases;
A-G 7*7.5 $52.5
H-L 5*9.5 $47.5
M-R 6*10.5 $63
Total Purchases $163
Less;Sales
A,D,E 3*7.5 ($22.5)
H,J 2*9.5 ($19)
N 1*10.5 ($10.5)
Total Sales ($52)
Ending Inventory Cost =(purchases-sales)=$163-$52=$111
