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3 years ago

Which best describes what a subsidy does?

2 answers:

8 0

<span>Hello,
</span>
Subsidy means allowance, funding, or donation.

Apart from the definition, I believe your answer would be:

<span>It keeps the price of domestic goods relatively low,
</span>

adell [148]3 years ago

8 0

Answer:

A on e2020

Explanation:

Just took the quiz

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For long-term positive relations, the goal of negotiation should most likely be to ________. a) establish a clear line of commun

slava [35]

Answer:

The correct answer is c) reach a settlement that benefits all parties.

Explanation:

Taking into account the nature of the relationship (long-term), an adequate treatment is exclusively required to achieve broad levels of negotiation. When this process is carried out under a harmonious environment, it is more feasible that part and part objectives can be achieved, which allows negotiations to be carried out in the future for the benefit of both people. A negotiation requires time and studies, for which some claims that harm the establishment of a common good must be lowered.

6 0

3 years ago

Research studies indicate that:

dezoksy [38]

Answer:

Explanation:

Research studies indicate that U.S. producers gain more from tariffs than U.S. consumers lose. This is mostly because many intermediaries must pay various different tariffs including the consumer which all go to the producers, and therefore allowing the producers to gain more from the tariffs that the U.S. consumers will spend paying them.

8 0

3 years ago

The process by which management plans, evaluates, and controls investments in fixed assets is called capital investment analysis

rjkz [21]

Answer:

a. True

Explanation:

The process by which management plans, evaluates, and controls investments in fixed assets is called capital investment analysis. This process is also known as capital budgeting.

Generally, capital investment analysis or capital budgeting is used by business firms or governmental agencies to assess and measure the profitability of a long-term investment on a fixed asset such as real estate, machinery or factory equipments etc.

Hence, the management is able to choose the best option for investment after an assessment of which investment would yield a higher level of profits.

8 0

2 years ago

R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year’s annual dividend is expec

zhannawk [14.2K]

Answer:

WACC 6.18%

Explanation:

to get the cost of capital we solve using the gordon model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

$\frac{divends}{Price} = return-growth$

$\frac{divends}{Price} + growth = return$

$$Cost of Equity =\frac{D_1}{P)} +g$

D1 1.55

P 28

f 0.00

g 0.02

$$Cost of Equity =\frac{1.55}{28} +0.02$

Ke 0.075357143

Then for the cost of debt, we need to calculate the YTM of the bonds:

which is the rate at which the present value of the coupon payment and maturity equals the market price:

For the complexity this is done with excel or a financial calculator there is also an approximation formula

YTM with excel: 0.073516565

now that we good this we need to determinate the weigth of equity and debt:

250,00 shares x 28 dollars each = 7,000,000

1,500 bonds of $1,000 each at 98% = 7,350,000

value of the company: 7,000,000 + 7,350,000 = 14,350,000

Ew: 7,000,000 / 14,350,000 = 0.487804878

Dw: 7,350,000 / 14,350,000 =0.512195122

Now we got all values and we can determinate the WACC:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.075357143

Equity weight 0.487804878

Kd 0.074

Debt Weight 0.512195122

t 0.34

$WACC = 0.075357143(0.48780487804878) + 0.074(1-0.34)(0.51219512195122)$

WACC 0.0617752 = 6.18%

7 0

3 years ago

Montclair Company is considering a project that will require a $610,000 loan. It presently has total liabilities of $165,000 and

Leya [2.2K]

Answer:

32.35% or 0.33

151.96% or 1.52

The new borrowing would make the financing structure more risky since the amount of fixed interest payment would increase significantly

Explanation:

Current debt to equity ratio:

Debt to equity=debt amount/equity amount

Current debt is $165,000

current equity is $675,000

equity =total assets-debt

debt to equity ratio=$165,000/($675,000-$165,000)=32.35%

If the $610,000 is borrowed ,the debt value would increase by $610,000

new debt value=$165,000+$610,000=$ 775,000.00

New debt to equity ratio= $775,000.00/$510,000.00=151.96%

6 0

2 years ago