Answer: C. II and III
Explanation:
There are 5,000,000 shares of PDQ Corporation as of when they declared the rights offering. This means that every share will get a right to buy stock.
However, as only 1,000,000 shares are being offered per the 5,000,000 shares outstanding it means that one stock may be purchased for every 5 rights.
A customer who owns 500 shares will therefore get 500 rights.
However with one stock up for sale per 5 rights they will receive the opportunity to buy;
= 500/5
= 100 shares
Answer:
Companies HD and LD
Since Company HD has the higher total debt to total capital ratio, the statement that is CORRECT is:
B) Company HD has a higher return on equity than company LD.
Explanation:
Return on Equity (ROE) is a financial measure of how well a company's management deploys shareholders' capital. A higher ROE can be a result of high financial leverage, meaning that more debt than equity is being used to generate the returns. Note that too much leverage poses solvency risks.
Answer:
to make montey and to keep our world level headeed
Explanation:
The rate of return I would earn if you bought the asset is 16.91.
<h3>What is the internal rate of return?</h3>
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested. It is a capital budgeting method.
IRR can be calculated with a financial calculator
- Cash flow in year 0 = $-5250
- Cash flow in year 1 = $750
- Cash flow in year 2 = $1000
- Cash flow in year 3 = $850
- Cash flow in year 4 = $6250
IRR = 16.91%
To learn more about the internal rate of return, please check: brainly.com/question/24172627
Answer:
The ATC curve is increasing at a decreasing rate.
Explanation:
Increasing returns to scale is when input used in production process in increased and output increases more than the proportion of the input used.
for example, if technology is increased by 20% and output increases by 50%.
When an input displays increasing returns to scale, the average total cost increases at a decreasing rate. this is because less input is used to produce more output
