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3 years ago

Is there a limit to the debt ratio's value? (select the best choice below.)

1 answer:

7 0

Debt ratio = Liabilities/Assets

A scenario can arise when all the assets are financed through borrowing and others debts. In such a case, debt ratio will be 100%. However, its theoretically impossible to have a debt ratio being more than 100%. A large debt ratio shows the risk at which a company is in. In practice, a debt ratio of between 60 to 70% is considered normal. Any ratio above 70% would scare investors away.

Therefore, choice d. is the best choice.

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Suppose that instead of using a forward contract, you consider using options. A one-year call option to buy euros at a strike pr

Stells [14]

Answer:

Sell the put option. The put option is better and advantageous .

Explanation:

The call option is trading far below the strike price and poses risk. The price may not go up to $1.25 and hence not advisable. The put option is better as we stand to make a profit margin ($1.15 / Euro) if it sells the put at he strike price immediately. Given that the difference is high, it is unlikely that the price will move against us and we shall exercise the option as soon as the margin starts reducing.

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3 years ago

A coase solution to a problem of externality ensures that a socially efficient outcome is to

agasfer [191]

A coase solution to a problem of externality ensures that a socially efficient outcome is to maximize the joint welfare, irrespective of the right of ownership.

Explanation:

In law and in economics the Coase theorem explains the economic efficiencies in the existence of externalities. The economic efficiency of economic allocation or outcome. In practice, barriers to negotiation or poorly defined rights of property can prevent coasean negotiations.

The private external solutions include, for the benefit of the relevant parties, moral codes, charities and business fusions and contracts. In the theorem, two parties can bargain and obtain an optimal outcome in the presence of an externality when transaction cost is low.

4 0

3 years ago

What are consumer goods and how do they allow a country to become a mdc?

Reika [66]

Consumer goods are those goods that are purchased and used by consumers. Consumer goods are not used by manufacturers to produce other goods. In essence, consumer goods are ready for use since they have been taken through the production and manufacturing. For a country to have consumer goods it must trade with other countries either to acquire raw materials or trade in consumer goods. This trade process contributes greatly towards the development of LDC economies into MDC status.

6 0

4 years ago

PLEASE!!!

Cerrena [4.2K]

Answer:

The example that represents economic globalization is:

D. a Japanese store selling tea and spices from South Asia

Explanation:

The reason behind this answer is that globalization is the concept designed to understand the economic activity of a certain country outside its borders and engaging commercial activities in its zone with different countries or in zones further away. Then, because they are doing business around the globe they are doing a globalization economy.

4 0

4 years ago

Rick, who is single, has been offered a position as a city landscape consultant. The position pays $141,800 in cash wages. Assum

Sliva [168]

Answer:

I used the 2020 standard deduction and income tax brackets to calculate the answer.

a. What is the amount of Rick’s after-tax compensation (ignore payroll taxes) and his income tax liability?

Rick's gross income $141,800

- standard deduction $12,400

taxable income $129,400

income taxes = (10% x $9,875) + (12% x $30,250) + (22% x $45,400) + (24% x $43,875) = $25,135.50

after tax income = $141,800 - $25,135.50 = $116,664.50

b. Suppose Rick receives a competing job offer of $102,500 in cash compensation and nontaxable (excluded) benefits worth $4,900.

Rick's gross income $102,500

- standard deduction $12,400

taxable income $90,100

income taxes = (10% x $9,875) + (12% x $30,250) + (22% x $45,400) + (24% x $4,575) = $15,703.50

after tax income = $102,500 - $15,703.50 + $4,900 = $91,696.50

5 0

3 years ago

Is there a limit to the debt​ ratio's value? ​ (select the best choice​ below.)

Is there a limit to the debt ratio's value? (select the best choice below.)