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mylen [45]
3 years ago
11

The business risk of a firm:

Business
1 answer:
AURORKA [14]3 years ago
8 0

Answer:

Option D is correct one.

The business risk of a firm: <u>has a positive relationship with the cost of equity for that firm.</u>

Explanation:

Business risk methods a possibility of causing misfortunes or less benefit than anticipated.  

The expense of value is the arrival an organization requires to choose if a venture meets capital bring prerequisites back. An association's expense of value speaks to the remuneration the market requests in return for claiming the advantage and bearing the danger of proprietorship.  

An organization's all out expense of capital incorporates obligation and value finances that are required to pay enthusiasm on obligation subsidizing and the profits on value subsidizing. The expense of value financing is dictated by evaluating the normal rate of return that could be normal dependent on returns produced by the more extensive market. In this manner, since advertise hazard legitimately influences the expense of value financing, it additionally straightforwardly influences the absolute expense of capital.

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Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218
lara31 [8.8K]

Answer:

The maximum Southern Tours could pay to acquire the Holiday Vacations is the present is the value of the inflows to be generated from the target company.

The present of the target business is $519,799.59  

Explanation:

That amount is the maximum that should be paid for the target business,depending on negotiation skills of Southern Tours' management.

A  lower price could be bargained,which better makes the investment more profitable.

Find attached spreadsheet for detailed computations.

Download xlsx
6 0
3 years ago
Under what condition will a monopoly firm incur losses?
Readme [11.4K]
<span>A monopoly would have to make it so the marginal revenue is less than the marginal cost, and in return, the monopoly would end up losing money instead of gaining money. This means that they are spending more money than they are making.</span>
3 0
3 years ago
Authority to conduct open market operations, which consists of buying and selling of , rests with the Committee. Reserves equal
katovenus [111]

Answer:

If the Fed conducts an open market purchase by specifically buying government securities from the Bank, banks' reserves increase and the quantity of money increases.

Explanation:

The Federal Reserve (Fed) buys and sells government securities to control the money supply. This activity is called open market operations (OPO). By buying and selling government securities in the free market, the Fed can expand or contract the amount of money in the banking system and pursue its monetary policy.

To increase the money supply, the Fed will purchase bonds from banks to inject money into the banking system.

The Federal Reserve's latest effort to calm the financial system — pumping $100 billion a day into trillion-dollar funding markets — is intended to be a temporary role, born of necessity. But it may turn out to be a significant expansion of the Fed's footprint.

3 0
3 years ago
A building manager hires a painting company to paint the common areas in the building. the manager will supply all of the paint.
OlgaM077 [116]
Your answer would be ,,, 
 a. true
5 0
3 years ago
A deficit on the current account Multiple Choice means that a nation is making international transfers. has no relationship to t
Sliva [168]

Answer:

The correct option is C

Explanation:

The deficit or shortage on the current account of the country, is defined as the measurement or determination of the trade of the company where the goods and the service value, it imports exceeds or increase the value of the products it exports.

The current account of the country states the foreign transactions of the country within the time period.

So, when there is deficit or shortage on the current account, it means that usually, it will cause deficit in the finance as well as the capital account of the country.

4 0
3 years ago
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