Answer: Decrease in fixed costs
Explanation:
When using the tax-shield approach, the relevant method of calculating operating cashflow is;
= (Sales - Cash Costs) * (1 - tax rate ) + (Depreciation * tax)
Looking at the formula it can be inferred that if fixed costs (part of cash costs) were to decrease, the cash from sales would be higher and would therefore result in an increased operating cashflow for the company.
Answer:
Raising; above potential income
Explanation:
- The courter policy refers to the strategy of the government to take control over the recession by the use of fiscal measures and thus works to stabilize the economy and thus increase public taxes and reduces public expenditure during the recession.
Answer: call; $180,000
Explanation:
Delta Importers has a pure discount loan with a face value of $180,000 due in one year. The assets of the firm are currently worth $215,000. The shareholders in this firm basically own a call option on the assets of the firm with a strike price of $180,000.
The equity of the firm is owned by the shareholders and it is identical to when a call option is being held and the strike price will be equal to the face value of $180,000.
A consumer is an organism that feeds on plants or other animals to get the energy that they need.
