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aev [14]
3 years ago
7

According to the​ Break-Even EBIT​ analysis, shareholders are​ ____ off with debt when EBIT is​ _____ the​ Break-Even EBIT level

. A. ​worse; above B. ​better; above C. ​better; below D. ​better; equal to
Business
1 answer:
Kobotan [32]3 years ago
3 0

Answer:

Answer B.

Explanation:

EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.

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If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in disposable income, she will use _____
Hatshy [7]

Answer:D $750

Explanation:

This is a way an individual optimise his consumption and his savings habit for their future.

It has to do with the future of any individual and plans are made for the future.

An individual can plan to spend more now and save a little or spend a little now and safe for the future.

3 0
4 years ago
If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is receiving 100,000 in 90 days, it could:_____
ivolga24 [154]

A 90-day forward-sale purchase contract will help to reduce or eliminate the risk facing the U.S. Firm.

<h3>What is a Forward sale Contract?</h3>

This refers to a special contract between two parties to purchase or sell an asset at an agreed price on a future date.

The fact that the price has been set and agreed upon protects the parties from fluctuations, which in this case, is exchange rate risks.

The correct answer, thus, is A.

See the link below for more about Forward-sale contract:

brainly.com/question/14862085


6 0
2 years ago
What is a secured loan
Anon25 [30]
" A secured loan is, a loan in which borrower pledges some asset as calateral for the loan, which them becomes a secured dept owned to the creditor who gives the loan."
8 0
3 years ago
Read 2 more answers
Cheryl purchased 5 identical hollow pine doors and 6 identical solid oak doors for the house she is building. The regular price
almond37 [142]

Answer:

The answer to this question is option C. $560

Explanation:

We can let the price of each hollow pine door = d and of each solid oak door = 2d.

Since each pine door = 40, d = 40, and the regular price of each solid oak door is (2)(4) = 80.

With a 25% discount, each solid oak door is 0.75(80) = 60.

So, the six oak doors cost 6 x 60 = 360 dollars, and the five pine doors cost 5 x 40 = 200 dollars. Thus, the total is 560 dollars.

Hence the answer is C

6 0
3 years ago
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The multiplier is useful in determining the full-employment unemployment rate level of business inventories change in the rate o
sasho [114]

Answer:

The multiplier is useful in determining the change in GDP resulting from a change in spending

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A change in autonomous spending will lead to a much larger final change in real GDP because of the multiplier effect. That spending will have a much larger final impact on real GDP.

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3 years ago
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