Answer:
From the strategies provided, the correct debt strategies that will help a corporate borrower eliminate credit risk are strategy 1 and strategy 2, which are; Strategy #1: Borrow $1,000,000 for three years at a fixed rate of interest of 7%. and Strategy #2: Borrow $1,000,000 for three years at a floating rate of LIBOR + 2%, to be reset annually. The current LIBOR rate is 3.50%.
Answer:
<u>D. Happenstance.</u>
Explanation:
The fact that German firms were nationalized has often been regarded as mere happenstance; meaning it just occurred based on the circumstances they were in immediately after World War II.
It thus encompasses several factors such as the cost of operations, changes in government, etc, not just one factor.
Internal growth rate = Net income / Total Assets
Net income = $68,200
Total assets = $687,300
Internal growth rate
= $68,200 / $687,300
= 0.099228 x 100%
= 9.92 %
Fried Donuts has an internal growth rate of 9.92%.
Answer:
$48,175
Explanation:
Given:
Cost of the weaving machine = $332,970
Useful life = 8 year or 767,000 bolts production
Residual value = $18,500
Number of bolts produced in the first year = 113,500
Number of bolts produced in the second year = 117,500
Now,
Using the units-of-production method of depreciation
Rate of depreciation = 
= 
= 0.41
Therefore,
Depreciation for the second year
= Rate of depreciation × Number of bolts produced in the second year
= 0.41 × 117,500
= $48,175
