Explanation:
Is the seller licensed?
Is the investment registered?
How do the risks compare with the potential rewards?
Do you understand the investment?
Using the scenarios in case exhibit 9, Leverage will always lead to an increase in the total rate of return in the equity because leverage will be increasing the interest tax Shield due to which it can be seen that the total market value of the company has increased with a higher amount of debt capital.
The cost of capital is generally decreasing with a higher amount of leverage as there will be benefits associated with interest tax shield.
It can be noticed that when a high amount of leverage is used by the company, it is eventually leading to a higher amount of market value for the company as well so higher leverage is leading to a higher amount of market value for the company so leverage is directly related to increases in the market value as high amount of leverage will be increasing the total market value.
Leverage is an investment strategy that uses borrowed money (specifically, the use of various financial instruments or borrowed capital) to increase the potential return on investment. Leverage can also refer to the amount of debt a company uses to fund its assets.
Leverage is the amount of debt a company has in its debt-equity combination (capital structure). A company with more debt than the industry average is considered highly leveraged. The definition of leverage is the act of leverage or force to influence a person, event, or thing. An example of a lever is the action of a seesaw. An example of leverage is being the only person running for class president. noun.
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Answer:
-$55 U
Explanation:
For computation of activity variance for supplies cost in March first we need to find the budgeted activity of standard supplies cost and actual activity of standard supplies cost is shown below:-
Budgeted activity of standard supplies cost = Supplies cost + Per frame cost × budgeted Activity frames
= $1,730 + $11 × 613
= $1,730 + $6,743
= $8,473
Actual activity of Standard supplies cost = Supplies cost + Per frame cost × Actual activity frames
= $1,730 + $11 × 618
= $1,730 + $6,798
= $8,528
So, activity variance for supplies cost = Budgeted activity of standard supplied cost - Actual activity of Standard supplies cost
= $8,473 - $8,528
= -$55
Answer:
Asset Misappropriation.
Explanation:
The type of fraud that Jake Rosen engaged in is called Asset Misappropriation.
Asset Misappropriation happens when a person diverts the assets of the company they work for or the client they represent, for their own personal use.
Jake Rosen diverted the funds of the hospital for his own personal use to enabled the purchase of two homes and a nice yacht amongst other things thereby making him guilty of asset misappropriation.
Answer and explanation:
Several effects could result in not following legal mandates for an organization. Lawsuits, penalties and fines, a decrease in reputation, and loss of opportunities are the most immediate. However, even if those consequences are obvious, some companies surpass legal regulations to avoid expenses that could reduce their revenue.
