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Yakvenalex [24]
3 years ago
10

For capital budgeting and cost of capital purposes, the firm should always consider retained earnings as the first source of cap

ital (i.e., use these funds first) because retained earnings have no cost to the firm.A. True.B. False.
Business
1 answer:
zmey [24]3 years ago
8 0

Answer:

False

Explanation:

Even though the main reason why a corporation should hold retained earnings is to use them as a source of capital, it doesn't mean that retained earnings don't have any cost associated with them.

The cost of holding retained earnings is the rate of return that shareholders require on the corporation's stock.

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The production function q = 22K^0.6 L^0.3 exhibits A. constant returns to scale. B. increasing returns to scale. C. unknown retu
Ivenika [448]

Answer:

D. decreasing returns to scale.

The answer and procedures of the exercise are attached in the image below.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

6 0
3 years ago
The points are only for ppl who have 12 to 20 points
icang [17]
Omg you’re the best thank you so much lol I have questions on my account if u wanna help bahah
4 0
3 years ago
Read 2 more answers
You were planning to spend Friday working at your part-time job, but a friend asks you to go kayaking.
N76 [4]

The statement that applies are the rental of ant kayak equipment you need the wages that you forgo by going kayaking and the fee for accessing the river in a national park

Explanation:

The true cost for going to a particular place includes all that costs that are included from moving to a place that includes all the wages and the vehicle cost

Here the opportunity costs includes the fee to go to the national park by crossing the river and the amount that is needed to be spent on the equipment and the wages that must be forgo by going to kayaking all these statements best includes the true costs of going to kayaking

7 0
3 years ago
Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per can. On a particular d
Brrunno [24]

Answer:

It will purchase 3 cans

total consumer surplus    0.70

Explanation:

the market price is 0.55

It will purchase up to three cans. the fourth can he is willing to purchase at 0.40 but the price is 0.55 so it won't trade for that one.

<u>consumer surplus:</u>

difference between the amounts he was willing to pay for each unit and the market price:

first can        0.95 - 0.55 = 0.40

second can 0.80 - 0.55 = 0.25

third can      0.60 - 0.55 = 0.05

total consumer surplus    0.70

5 0
3 years ago
You have taken a short position in a futures contract on corn at $3.74 per bushel. Over the next 5 days (Day 1 to Day 5) the con
eimsori [14]

Answer:

Explanation:

In finance, short selling (also known as shorting or going short) is the practice of selling assets, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender.

So in the given scenario the investor would be at lose of

Selling price = 3.74 per bushel

Purchase price = 3.61 per bushel

therefore lose of $ 0.13 per bushel you need to pay off.

3 0
3 years ago
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