Answer:
Supply equals demand
Explanation:
Equilibrium is a situation which occurs when there is a balance between quantity demanded and quantity supplied.
Answer: The cost of capital for a firm with no debt in its capital structure.
Explanation:
Leverage in finance refers to the use of debt. Unlevered capital therefore would refer to capital that is without debt which means that an unlevered cost of capital is one with no debt in its capital structure.
Companies with such a capital structure derive their capital 100% from Equity and as such do not pay interest. This means however, that they will not benefit from the tax shields that interest payments offer.
When a firm sees average costs start to increase as production increases, this is known as diseconomies of scale.
What Are Diseconomies of Scale?
When a corporation or business expands to the point where the costs per unit rise, this is known as a diseconomy of scale. It happens when a firm's use of economies of scale is no longer viable. According to this theory, when output increases, a firm experiences an increase in costs rather than continuing to see reducing expenses and rising output.
What causes diseconomies scale?
Diseconomies of scale can be the result of several things, including poor management and employee communication, a lack of drive, a lack of coordination, and a loss of concentration.
How do you manage diseconomies of scale?
Businesses may divide themselves into more controllable parts in an effort to alleviate scale-related inequities. A huge multinational, for instance, might be divided up into regional geographic areas, with local managers being rewarded for maximizing efficiency.
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Answer:
B) IRR is 3%. Reject the project.
Explanation:
We can use an excel spreadsheet to calculate the internal rate of return (IRR) for this investment:
we can use the IRR function =IRR(values,[guess])
where:
- value 1 = -238160
- value 2 to 6 = 52000
- guess = optional, not required
=IRR(-238160,52000,52000,52000,52000,52000) = 3%
If a company buys back $100 worth of stock, this increases the cash flow to the stockholders by exactly $100.
This is further explained below.
<h3>What are
stockholders ?</h3>
Generally, An person or a legal organization that is registered by a company as the legal owner of shares of the share capital of a public or private business is referred to as a shareholder of that corporation.\
In conclusion, When a corporation repurchases $100 worth of its own stock, the result is an increase in cash flow of precisely $100 to the firm's investors.
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