Graphical information can be useful in

Individuals who pay less of their own health care costs may have an incentive to use health care resources more frequently and t

SSSSS [86.1K]

Answer:

C. moral hazard.

Explanation:

Moral hazard -

It is the condition , where the person take more risk , as he or she is aware that someone else need to bear the risk , is known as moral hazard .

In this case , one of the party can change the damage of other after any type of monetary transaction has occurred .

Hence , from the question ,

The statement given in the question , is about Moral hazard .

3 0

2 years ago

Agency costs faced by MNCs may be larger than those faced by purely domestic firms because: a.monitoring of managers located in

mars1129 [50]

Agency costs faced by MNCs may be larger than those faced by purely domestic firms because:

monitoring of managers located in foreign countries is more difficult AND foreign subsidiary managers raised in different cultures may not follow uniform goals.
monitoring of managers located in foreign countries is more difficult.
.MNCs are relatively large.
foreign subsidiary managers raised in different cultures may not follow uniform goals.

<h3>What are multinational corporations?</h3>

Multinational corporations can be regarded as one that have the license to operates in more than one country at a time.

Agency costs faced by MNCs may be larger than those faced by purely domestic firms due to how foreign subsidiary managers raised in different cultures may not follow uniform goals.

Read more on human capita development here:

https://brainly.in/question/36071285

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8 0

1 year ago

Tom takes a loan of $60,000 at 4% annual interest to purchase a property worth $100,000. He earns an annual income of $10,000 af

guajiro [1.7K]

Based on the given data, Tom's leveraged return on the real estate investment is 13.3%.

A leveraged return means an investment return on equity partially financed with debt.

Investment in property = $100,000 - $60,000

Investment in property = $40,000

Interest = $60,000 * 4%

Interest = $2,400

Net income after tax = ($10,000 - $2,400) * (1 - 30%)

Net income after tax = $7,600 * 0.70

Net income after tax = $5,320

Leveraged return = Net income after tax / Investment in property * 100

Leveraged return = $5,320 / $40,000 * 100

Leveraged return = 0.133 * 100

Leveraged return = 13.3%

Hence, Tom's leveraged return on the real estate investment is 13.3%.

Learn more about leveraged return:

brainly.com/question/14005616

8 0

2 years ago

One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5 percent, paid semiannually, and a fa

Masja [62]

Answer:

option (C) - 6.11%

Explanation:

Data provided :

Coupon rate one year ago = 6.5% = 0.065

Semiannual coupon rate = $\frac{0.065}{2}$ = 0.0325

Face value = $1,000

Present market yield = 7.2% = 0.072

Semiannual Present market yield, r = $\frac{0.072}{2}$ = 0.036

Now,

With semiannual coupon rate bond price one year ago, C

= 0.0325 × $1,000

= $32.5

Total period in 15 years = 15 year - 1 year = 14 year

or

n = 14 × 2 = 28 semiannual periods

Therefore,

The present value = $C\times[\frac{(1-(1+r)^{-n})}{r}]+FV(1+r)^{-n}$

= $\$32.5\times[\frac{(1-(1+0.036)^{-28})}{0.036}]+\$1,000\times(1+0.036)^{-28}$

or

= $32.5 × 17.4591 + $1,000 × 0.37147

= $567.42 + $371.47

= $938.89

Hence,

The percent change in bond price = $\frac{\textup{Final price - Initial price}}{\textup{Initial price}}\times100\%$

= $\frac{\textup{938.89-1,000}}{\textup{1,000}}$

= - 6.11%

therefore,

the correct answer is option (C) - 6.11%

4 0

2 years ago

In a cap-and-trade system, ______ set(s) a regulatory cap (limit) on emissions and issue(s) pollution permits, and ______ can bu

Anna [14]

________________________________

In a cap-and-trade system, the government set(s) a regulatory cap (limit) on emissions and issue(s) pollution permits, and polluters can buy, sell, and trade these permits with others.

________________________________

In a cap and trade system, the government sets an emissions cap and issues a quantity of emission allowances consistent with that cap. Emitters must hold allowances for every ton of greenhouse gas they emit. Companies may buy and sell allowances, and this market established an emissions price.

________________________________

4 0

1 year ago