Meyer Inc's total invested capital is $610,000, and its total debt outstanding is $185,000. The new CFO wants to establish a tot
al debt to total capital ratio of 55%. The size of the firm will not change. How much debt must the company add or subtract to achieve the target debt to capital ratio? a. $164,045
b. $150,500
c. $115,885
d. $165,550
e. $185,115
A period of macroeconomic expansion followed by a period of macroeconomic contraction is known as a business cycle. Like the name suggests, a business cycle is a cycle of highs and lows in economic activities.
There are periods of expansion which is often characterized by economic growth, leading to creation of more jobs, robust middle class etc and contraction which is characterized by loss of jobs, shrinking middle class etc in a business cycle.
Other periods of a business cycle may include peak, trough etc.
When <u>a multinational organization owns and controls productive assets in foreign countries through investment</u>, it is known as Foreign Direct Investment (FDI) and NOT relative efficiency of production.
FDI may be carried out through mergers and acquisitions, joint ventures and building facilities in other countries.
