<span>E, there is not enough information without actually having the Return on Equity from which we can subtract the operating return. With only percentages, we cannot extract this answer.</span>
Answer:
The answer is C.
Explanation:
Debt-to-equity ratio is an economical term that is used to express the balance between a companies total debt and its assets. It shows at what ratio the company's assets are funded by investors, stakeholders etc.
Since the industry average debt-to-equity ratio is 0.80 and the two companies have debt-to-equity ratios of 1.00 and 1.50 respectively, they are both over the average.
But with the higher ratio, Carter Co. has a higher financial risk compared to Sunny Co. and the industry average debt-to-equity ratio. So the correct answer is C.
I hope this answer helps.
Answer: 1. Portfolio
2. • Protecting property rights and enforce contracts.
• Providing tax breaks and patents for firms that pursue research and development in health and sciences.
3. All of the above
Explanation:
1. Since the wealthy French citizen buys $2 million worth of stock issued by an American corporation and the American firm uses the proceeds for a factory expansion, then this is considered to be an example of foreign portfolio investment in the United States.
2. The policies that are consistent with the goal of increasing productivity and growth in developing countries include:
• Protecting property rights and enforce contracts.
• Providing tax breaks and patents for firms that pursue research and development in health and sciences.
3. The possible outcomes of rapid population growth include a reduction in the human capital per worker, a reduction in capital per worker and an increase in technological knowledge. Therefore, the answer is all of the above.
Answer:
Please see below
Explanation:
A. Decreasing the wage rate leads to an increase in the quantity of labor demanded. Which leads to increased production and ultimately can lead to an increase in a firm's profit if other factors are left constant.
B. The two factors at work is demand and supply.
Answer:
Explanation:
The reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset lower than the book value of the asset then there is an impairment.
Amortized Cost / Book value = $40,000
Fair Value = $30,000
Debt investment is also impaired as its fair value is less than the amortized cost which is the book value.
Impairment Loss = $40,000 - $30,000
Impairment Loss = $10,000
