Answer:
Correct answer is TRUE
Explanation:
Non-cash assets are expected to produce cash over time but the amount of cash they eventually produce could be higher or lower than the values at which the assets are carried on the books. Some factors that affects the value of non-cash assets are the general economic forces such as inflation or deflation, amortization or impairement itself of the assets. It maybe realized at favorable side (gain) or unfavorable (loss) side.
Answer and Explanation:
The computation is shown below:
a. Marpor's value without leverage is
But before that first we have to calculate the required rate of return which is
The Required rate of return = Risk Free rate of return + Beta × market risk premium
= 5% + 1.1 × (15% - 5%)
= 16%
Now without leverage is
= Free cash flows generates ÷ required rate of return
= $16,000,000 ÷ 16%
= $100,000,000
b. And, with the new leverage is
= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)
= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)
= $93,750,000 + $14,000,000
= $107,750,000
Answer:
Marginal thinking
Explanation:
The economic foundation of marginal thinking requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost. And according to this principle, Marie´s benefits of the first three bananas is higher than its cost, but the fourth banana will provide less benefit than the third and this is less than it cost.
This welfare-reform plan responded to criticisms that welfare encouraged poor people to remain unemployed in order to keep receiving aid. It replaced the traditional antipoverty program for poor families (Aid to Families with Dependent Children, or AFDC) with a new program called Temporary Assistance for Needy Families (TANF).
Answer:
D. tradable permits
Explanation:
Tradable permits also known as emissions allowance is an attempt at regulating pollution through the market system. tradeable permit gives right to the bearer of such permit to emit pollution up to a limited amount and if such permit is partially used or for one reason or the other, it is unused, it can be traded or negotiated to a willing buyer.
