Answer:
a. ABC Inc.
Explanation:
The degree of financial leverage is expressed by the following formula,
= ![\frac{EBIT}{EBT}](https://tex.z-dn.net/?f=%5Cfrac%7BEBIT%7D%7BEBT%7D)
The ratio represents the relationship between net operating profits and profits after financial fixed costs.
Higher the degree of financial leverage, higher will be the financial risk.
In the given case, ABC Inc.'s degree of financial leverage is higher which suggests that ABC has employed more of debt in it's financial structure owing to which higher fixed cost obligations in the form of interest payments have been created.
Thus, ABC Inc. will have a greater financial risk.
The extended ERP component that collects information throughout an organization and evaluates it is called <u>Business intelligence.</u>
<h3>What is business intelligence?</h3>
This is the component of Enterprise Resource Planning (ERP) that deals with collecting information from the entire organization.
This information would then be organized and prosessed after which it will then be used to guide the decisions of management.
Find out more on Enterprise resource planning (ERP) at brainly.com/question/14635097.
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Answer:
Giancarlo’s initial investment in the Suzuki XL7 is $17,122
Explanation:
The computation of the initial investment is shown below:
= Negotiated price of new Suzuki + Taxes and fees charges on purchase of a new car - proceeds from the old car
= $24,675 + $1,732 - $9,285
= $17,122
The estimated value of the old, new car and the annual repair cost is not relevant for computing the initial investment. Hence, we ignore it and not considered this cost.
Answer: Option (c) is correct.
Explanation:
The short run Phillips curve represents the trade off between unemployment and inflation. This means that if there is an increase in the inflation rate then as a result unemployment rate decreases and if there is an increase in the unemployment rate then as a result inflation rate decreases. There is an inverse relationship between unemployment and inflation rate.
The long run Phillips curve is a vertical line which is at a point of natural rate of unemployment and short run Phillips curve is L-shaped.
Answer:
Answer is 12.64%. Therefore,
Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least 12.64%.
Refer below for the explanation.
Explanation:
E - 4%= 0.5(3)(24%)2
E=12.64%