<u>Answer:</u>
<em>Sold product liability suit against the maker, alleging a design defect, the court may consider an available alternative design
</em>
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<u>Explanation:</u>
At the core of the idea of faulty item configuration exemplified in the Restatement (Third) of Torts: Product Liability is the accessibility of a sensible elective plan that could have diminished or kept away from the danger of mischief. In any case, a product might be defective, regardless of whether no sensible elective plan exists, if it neglects to give possible directions or warnings of a predictable danger of damage. An ongoing choice of the Massachusetts Appeals Court represents the use of these standards.
The target capital structure and the companies that prefer them are:
Equity Capital structure:
- Managers with a conservative management style.
- Companies not in a position to provide collateral.
- Companies want to show a high credit rating.
Debt Capital:
- Companies with high growth rate.
- Businesses in the growth stage.
- Fast-growing companies like software.
<h3>What drives companies to pick either debt or equity?</h3>
Companies that are conservative and want to have high credit ratings will not employ debt as much because it is risky. Companies that cannot give collateral for debt also prefer equity.
Companies that are growing on the other hand, prefer to go for debt because they have the capacity to pay it off.
Find out more on the decision between debt and equity at brainly.com/question/24322461.
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Answer:
Expected return on equity is 11.33%
Explanation:
Using Weighted Average Cost Capital without tax formula, overall rate of return is given by the formula:
WACC=(Ke*E/V)+(Kd*D/V)
Kd is the cost of debt at 6%
Ke is the cost of equity at 12%
D/E=1/2 which means debt is 1 and equity is 2
D/V=debt/debt+equity=1/1+2=1/3
E/V=equity/debt+equity=2/1+2=2/3
WACC=(12%*2/3)+(6%*1/3)
WACC=10%
If the firm reduces debt-equity ratio to 1/3,1 is for debt 3 is for equity
D/V=debt/debt+equity=1/1+3=1/4
E/V=equity/debt+equity=3/1+3=3/4
WACC=10%
10%=(Ke*3/4)+(6%*1/4)
10%=(Ke*3/4)+1.5%
10%-1.5%=Ke*3/4
8.5%=Ke*3/4
8.5%=3Ke/4
8.5%*4=3 Ke
34%=3 Ke
Ke=34%/3
Ke=11.33%
Answer: we can conclude Chuy plans to save $55 a week
Explanation:
Answers:
Correct answer:
1. Investment
2. Trade-off of present for future benefit
Incorrect answers:
1. The only possible decision
2. The consumption of consumer goods.
