Answer:
No, it is a bad idea to use only the cost of debt
Explanation:
Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.
Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.
When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.
Answer:
$6000
Explanation:
Accordingly, the costs associated with throwing a party for employees and their families (spouses and significant others) are fully deductible (100%) as long as the party is hosted primarily for the employees. In this case, the party is for the employees as it is seen to benefits them, thus, total cost Donald can deduct equals cost of beverages and food plus cost of band,
That is,
= 5500 + 500
=$6000
Social responsibility in marketing refers to marketing philosophies, strategies, practices, and actions whose main goal is to improve society and safeguard the environment by using environmentally friendly goods and methods.
SOCIAL RESPONSIBILITY: WHAT IS IT?
Sustainability can be attained through social responsibility. Any business or system can increase its chances of long-term sustainability and success by adopting fundamental social responsibility principles including accountability and transparency.
An organization's accountability for the effects of its choices and actions on people, the environment, and society through openness and moral behavior that: contributes to societal well-being and sustainable development, including health reflects an awareness of stakeholder expectations is in accordance with all current laws and international standards of conduct is incorporated across the business and used in partnerships.
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If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is: 400.
<h3>What is maximum gain potential/capital gain?</h3>
When an investor invests in or sells put option on stocks she owns, she is selecting a good approach to hedge against loss or bring additional funds in her account. Whenever a seller invests cover call options, this is the most frequent form.
Now according to the question-
- A short stock with such a short puts is an income strategy with unlimited loss potential.
- Although the customer will profit if the price falls, the customer signed an in-the-money put that would be exercised, requiring the client to acquire stock at 80 for a $100 loss here on stock shorted at 79.
- However, the customer collected $500 in premiums, for a total gain of $400.
- The break even point for a brief stock-short put is the short sale price plus the premium.
- In this scenario, the break-even point is 84, and the maximum gain is four points, between 84 to 80.
Therefore, the maximum gain potential is 400.
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The answer to your question is the letter d.
