Answer:
The answer is: C) Investment spending by businesses varies inversely with the interest rate.
Explanation:
This statement is true all the time. When a company evaluates the costs and benefits of an investment, interest rate plays a fundamental part in those calculations. The two basic reasons for that are:
- The higher the interest rate a company (or any individual) has to pay for a loan, the harder it is for the company to repay the loan.
- The interest rate a bank charges is usually correlated to the opportunity cost of an investment. The higher the interest rates banks charge, the higher the internal rate of return (which is used to calculate the Net Present Value of an investment) will be. This is because banks don´t print money, they take in deposits and then they loan the money the someone else. So if the interest rate the bank charges is high, usually the interest rates the bank pays for the deposits is also high. Instead of investing, a company might just put their money on the bank and earn a better return rate.
Firms should emphasize the importance of consistently good customer service to its employees in order that good customer service becomes a part of the organizational culture.
Organizational culture is that the collection of values, expectations, and practices that guide and inform the actions of all team members. consider it because the collection of traits that make your company what it's. a good culture exemplifies positive traits that result in improved performance, while a dysfunctional company culture brings out qualities that may hinder even the foremost successful organizations. Organizational culture affects all aspects of your business, from punctuality and tone to contract terms and employee benefits. When workplace culture aligns together with your employees, they’re more likely to feel softer, supported, and valued. Companies that prioritize culture may also weather difficult times and changes within the business environment and are available out stronger.
Learn more about Organizational culture.
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Answer:
person's driver's license number
Explanation:
A single valued attribute means that a person or a thing can only have a single value for that attribute, for example, you can have only one social security number since having more than one is illegal.
Following the same logic, you could only have one driver's license number, since you can only have one license.
But you can have more than one cellphone, you can also have more than one car, and finally you may have attended more than one college.
The answer is<u> "political risk".</u>
Political risk is among the most critical hazard factors confronting international investors. In many rising and frontier markets, the political circumstance is altogether less steady than the United States with the potential for across the board extortion and defilement.
Political risks are those related with changes that jump out at a nation's approaches administering organizations, and additionally outside elements that could influence organizations.
Answer:
The WACC will be 10% for average risk
below when the risk is low
and above 10% when the risk is higher than average
as the cost of capital (required return from the stockholders) will increase pushing the WACC higher
Explanation:
As the WACC is composed by the cost of debt and the cost of equity a higher risk will require a better return for the investor thus, the equity proportion that determinates the WACC will change along the project risk.
