Answer:
E. If the interest rate the companies pay on their debt is more than their basic earning power (BEP), then Company Heidee will have the higher ROE.
Explanation:
Base on the scenario been described in the question, we saw that between the two companies, Heidee and Leaudy, they both have the same total assets, sales, operating costs, and tax rates, and they pay the same interest rate on their debt but company Heidee has a higher debt ratio, this will make company Heidee has a higher ROE because of its higher ratio of debt
Groups of related business activities such as the acquisition of merchandise and payment of vendors are called transaction cycles.
A transaction cycle is an interlocking set of business transactions. Most of those transactions may be aggregated into a comparatively small number of transaction cycles associated with the sale of products, payments to suppliers, payments to employees, and payments to lenders.
A transaction cycle is a set of accounting transaction that happens in a very normal sequence as an example a sales transaction is followed by shipping transaction, a billing transaction, and a cash receipts transaction.
Therefore, there are four transaction cycles which are the following:- Financial cycle, expenditure cycle, revenue cycle, conversion cycle.
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Answer: You want direct email spam is what you dont want.
Explanation: Generally, consumers must sign up to receive direct e-mailings and the recipient of the e-mail to opt-out of future mailings. Spam is unsolicited, uninvited, and often it is impossible to opt-out of spam.
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Answer:
$180 billion
Explanation:
The consumption is an act of spending the money from an income. The marginal propensity to consume is the proportion increase in the amount that a consumer is spending. The savings then decline if the consumption increases. In the given scenario the consumption will not raise even if there is an increase in national income and taxes are kept fixed at previous level. This is because marginal propensity to consume is same.
Answer:
Explanation:
The law of diminishing marginal utility helps to explain the negative slope of the demand curve and the law of demand.If the satisfaction obtained from a good declines, then buyers are willing to pay a lower price, hence demand price is inversely related to quantity demanded, which is the law of demand.