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katrin2010 [14]
3 years ago
12

The use of debt in the firm's capital structure will increase ROE if the firm:_____.

Business
1 answer:
DIA [1.3K]3 years ago
8 0

Answer: c. earns a higher return than the rate paid on debt.

Explanation:

If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.

ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.

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What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make l
bagirrra123 [75]

Answer:

The equilibrium price would increase, and the equilibrium quantity would decrease.

Explanation:

With an increase in the cost of steamed milk, the cost of materials, one of the key factors in pricing decision would rise, which means that the equilibrium price of lattes would also increase. With an increase in price, according to the law of demand, there is a decrease in demand. Therefore, the quantity of lattes sold at the new equilibrium price would decrease.

The equilibrium price would increase, and the equilibrium quantity would decrease.

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3 years ago
What changes the value of the dollar?
kodGreya [7K]

There are a number of factors that changes the value of the dollar; whether in favor or not.

  • The country's monetary policies
  • Demand for dollar
  • International trade
  • Economic growth
  • Inflation

<h3>What causes a change in dollars value?</h3>

The value of dollars appreciate or depreciate when;

The demand for dollar is high or low. For example, the global community usually want their investment secured with a stable currency. Some of them prefer their investments in dollars. This means that the demand for dollars increases and also it value appreciates. If people don't demand for dollars, and the country has little investors, the dollar depreciates.

Learn more about value of dollars here;

brainly.com/question/4536858

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6 0
10 months ago
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Corn syrup and maple syrup are substitutes. News of health benefits from maple has increased the demand for maple syrup and decr
77julia77 [94]

Answer:

The equilibrium price of corn syrup will fall. The change in equilibrium quantity will depend upon the extent of change in demand and supply.

Explanation:

Corn syrup and maple syrup are substitutes.

News of health benefits from maple has increased the demand for maple syrup and decreased the demand for corn syrup.

The demand curve for corn syrup will move to the left.

Meanwhile, the government has subsidized corn crops. This will cause the price of corn to fall. As the input price declines the cost of producing corn syrup will decline as well. The firms will be able to provide more at the same cost.

This will cause the supply to increase. As the supply curve moves to the right. The equilibrium price of corn syrup will fall. The change in equilibrium quantity will depend upon the extent of change in demand and supply.

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3 years ago
Suppose you are an astronaut making a space walk outside your space station and your jet pack runs out of fuel. How can you use
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<span> Take it off and throw it in a direction directly away from the station
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3 years ago
Workplace ____________ is when an employee is treated poorly because of a protected characteristic.
BabaBlast [244]

Discrimination would be the correct answer for this question.

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3 years ago
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