Answer:
Financial leverage
Explanation:
Financial leverage is defined as the use of borrowed funds to perform a business activity or investment that is expected to have higher returns than the cost of borrowing the money (interest).
When a company is looking for funds for its activities there are 3 options they can use: equity, debt, or lease.
Use of equity is the only option where no extra cost is incurred for use of funds.
When using debt or lease cost of use is incurred. The business will need to engage in an activity that will give it revenue above cost of debt.
This practice is called use of financial leverage.
Answer:
"Mexico" is the appropriate answer.
Explanation:
- Throughout the case of Mexican individuals, what and when to talk in the discussions or conferences is punctual.
- Furthermore, you wouldn't overlook the little characteristics because doing so would generate misunderstanding or some complications. You mention as well as continue to talk all about that at the conference.
Similar to a stock split, a stock <u>dividend</u> also distributes additional shares of stock to existing stockholders on a pro rata basis at no cost to the stockholders.
A stock split is a decision made by the board of directors of a firm to issue more shares to present owners in order to increase the number of shares outstanding.
A stock split is a division of issued shares in a ratio determined by the company, whereas a stock dividend is a dividend paid in the form of extra shares. While in a stock split, already issued shares are divided in accordance with a predetermined ratio, a stock dividend gives stockholders extra shares.
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Answer:
$3,168
Explanation:
We will receive $4000 in future (after 4 years time) which means all we want to know is the amount that we Derek must deposit today.
This present value of the $4000 payment received after 4 years from today can be calculated using the following formula:
Present value = Future Value / (1 + r)^n
Here
Future Value is $4000
r is 6%
n is 4 years
So by putting values, we have:
Present value = $4000 / (1 + 6%)^4 Years
Present value = $3,168
Answer: True
Explanation:
Proper planning without control is futile, this is because a blue print may have been put in place in the planning process but it becomes imperative for management to set up institutions or machineries to ensure that plans are executed as expected and there are remedial actions or plans in place in the event when unexpected events come up to distort achievement of the goal.
Proper control leads to achievement of organizational goals.
