Unless the bankers are serious money moochers, the lowest interest (In Total Amount) will be:
C. Daily Compound
This is the most likely because the more time you take to pay your debt the more you have to pay in interest.
<u>Answer:</u>
<em>C) Actual investment includes unplanned inventory changes, but planned investment does not
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<u>Explanation:</u>
The total amount of investment consumptions attempted by a business during a timeframe consists of both arranged and impromptu costs of capital. The idea of pure speculation is a significant piece of Keynesian financial aspects and is utilized to decide the purpose of macroeconomic harmony, at which real venture equivalents arranged venture.
When moving toward interest in the securities exchange, there are two fundamental procedures utilized, principal investigation and specialized examination. Likewise, with any speculation technique, there are promoters and depreciators of each approach.
Answer:
1
Explanation:
Given that,
Weighted average cost of capital = 7%
After-tax cost of debt = 4 percent
Cost of equity = 10 percent
Let the debt of this firm be x, then the equity will be (1 - x),
wacc = (After-tax cost of debt × Debt) + (Cost of equity × Equity)
7% = (4% × x) + [10% × (1 - x)]
0.07 = 0.04x + 0.1 - 0.1x
0.07 = 0.10 - 0.06x
0.06x = 0.10 - 0.07
0.06x = 0.03
x = 0.5
Therefore, if the debt is 0.5 then the equity is 0.5.
Hence, the debt to equity ratio will be:
= 0.5 ÷ 0.5
= 1
The debt-equity ratio is 1 for the firm to achieve its targeted weighted average cost of capital.
Answer:
C) return on equity
Explanation:
The return on equity determines the financial performance of the company. It could be calculated by dividing the net income from the owners equity as according to the accounting equation, the owners equity could be find out by deducting the liabilities from the assets
So here the equity could be of both types i.e. common and preferred
Therefore the option c is correct
Answer:
The winners were tire exporters from nations other than China, since the price of tires from these nations rose from $53.94 to $62.02, and this rise was not due to tariffs.
The losers were Chinese tire exporters, because while the price of Chinese tires also rose, it was because of the tariff, which is not income received by the exportes. Besides, the volume of imports from China also fell.
