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photoshop1234 [79]
3 years ago
15

Financial leverage: Group of answer choices is the ratio of a firm's revenues to its fixed expenses. is equal to the market valu

e of a firm divided by the firm's book value. increases the potential return to the stockholders. is inversely related to the level of debt. increases as the net working capital increases.
Business
1 answer:
Rainbow [258]3 years ago
7 0

Answer: Increases the potential return to the stockholders.

Explanation:

Financial Leverage is the use of more debt to fund company assets. This can lead to higher potential returns to the Stockholders if the interest rate attached to the debt is less than the Company's required rate of return. That way, the difference between the rates will bring about a positive return for shareholders.

Also, having more debt provides a sort of tax shield to the earnings of the Stockholders because Debt is Tax Deductible. This will therefore increase the earnings going to the Stockholders.

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Gross Investment 18
kkurt [141]

Answer:

c) $75.

Explanation:

<u>The disposable income is the amount of personal income after taxes</u>

we can solve for taxs using the savings identity:

<em>Savings = Private Savings + Public Savings</em>

where:

Private savings: personal income - personal consumption

and Public Savings = taxes - government spending

We plug the value in the formula and solve for T

5 = 85 - 70 + T - 20

5 = T - 5

T = 10

Now, we derive personal income:

85 income - 10 taxes = 75 disposable income

5 0
3 years ago
2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qua
Vadim26 [7]

The original data is :

Data for Hermann Corporation

                                          Per unit     Percent of sales

Selling price                         $ 75              100%

Variable expenses                  51                 68

Contribution margin             $ 24               32%

The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.

Solution :

                                                     Present             Proposed

Sales                                             300000            375000

Less : Variable cost                      204000           275000

Contribution margin                     96000               100000

Less : Fixed expenses             <u>    75000     </u>      <u>     75000    </u>

Net income                                   21000                25000

The net operating income :      Increases          4000

Net operating income = increased sales Net income - current sales net income.

Therefore the higher quality component should be used.                                                            

8 0
2 years ago
Which of the following is NOT a step in the strategic planning process?A) defining the company missionB) setting company objecti
Colt1911 [192]

Answer:

Which of the following is NOT a step in the strategic planning process?

E) evaluating all members of the value chain

Explanation:

Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy

4 0
3 years ago
A teacher has decided to take her fifth grade class to a play. The manager of the theater agreed to discount the regular ​$35 pr
MArishka [77]

Answer:

40 students

Explanation:

The cost of the bus is $480

For x students, the cost of each ticket will be 35 - 0.30x

The total cost of the tickets for x students will be x(35 - 0.30x)

To find the number of students that will make the cost per student equal to $33, we solve for x:

<u>480+ x(35 - 0.30x)</u>  =35

                x

480+ x(35 - 0.30x<u>)</u>   = 35x

480 + 35x - 0.30x²   = 35x

480                            = 0.30x²

1,600                          = x²

40                               = x

The cost per student will be $35 if the number of students is 40; it will be less than $35 if the number of students is greater than 40.

8 0
3 years ago
Most goods and services produced at home a. and most goods and services produced illegally are included in GDP. b. are included
katen-ka-za [31]

Answer:

Most goods and services produced at home are included in GDP while most goods and services produced illegally are excluded from GDP.

Explanation:

The United states Gross Domestic Product is measured including only the production of legal goods and services within a given year. This means that all goods and services for previous year are not taken into account as well of illegal products or services.

7 0
3 years ago
Read 2 more answers
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