Answer:
A) Company A is the one that is financially leveraged.
Where there is the presence of debt in the capital structure of a firm, that firm is said to be Financially leveraged.
B) A is true.
A company's return on equity or expected returns increases because the use of leverage increases stock volatility. Volatility increases its level of risk which in turn increases returns. This happens only if the company is operating an ideal level of financial leverage.
On the other hand, however, but excessive debt can increase the risk of default and can lead to low returns or even bankruptcy.
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Answer:
Explanation:
The journal entries are shown below:
On January 1
Copyright A/c Dr $420,000
To Cash A/c $420,000
(Being copyright is purchased)
On December 31
Amortization A/c Dr $42,000
To Accumulated amortization A/c $42,000
(Being annual amortization is recorded)
The computation is shown below:
= Purchase value of copyright ÷ number of goods years
= $420,000 ÷ 10 years
= $42,000
<span>Distinguish how companies whose profits reflect growth in your industry are able to structure their business to cope with changes in customer needs. ... Assess your strategic objectives and your business activities to ensure that they align with achievement of your key success factors.</span>
Exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.
<h3>What do you mean by exchange rate?</h3>
Exchange rates refer to the value of one's nation's currency over the currency of another nation.
An exchange rate can be fixed or free-floating. A fixed exchange rate is pegged to the value of other currency and a free-floating exchange rate may rise or fall due to changes in the foreign exchange market.
Thus, exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.
Learn more about the exchange rate here:
brainly.com/question/14930716
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