Answer:
b. no dividends to common stockholders.
Explanation:
To the extent that the net cost of debt is greater than the opportunity cost of the investor. The company must work with a reduced debt / capital ratio, that is, borrow as little as possible. This reflection is possible to the extent that investors have sufficient equity capital. In any case, when financing a company with a relatively high debt / equity ratio, shareholders tend to sacrifice their dividends in cash, capitalize their profits to allow the business to accelerate the amortization of their debt, or seek other financing options that allow replacing expensive debt with cheap financing.
Answer:
The correct answer is letter "D": sustainability.
Explanation:
Sustainability refers to the ability of businesses to keep their operations up and running over long periods. Firms achieve this with a mixture of flexible and strong strategies that allow them to take advantage of their opportunities and strengths and minimize the impact of the threats and weaknesses inherent.
Answer:
6.5%
Explanation:
Data given in the question
Beta of the stock = 0.9
Expected return = 9%
A risk-free asset = 4%
By considering the above information, the expected return on a portfolio is
= Risk - free asset × equally basis + expected rate of return × equally basis
= 4% × 50% + 9% × 50%
= 2% + 4.5%
= 6.5%
Since we have to find out the expected return on equally invested so we considered the risk free asset and the expected rate of return
Therefore we ignored the beta of the stock
Answer:
Company quotes an interest rate 17 percent on one-year loans.
Explanation:
Borrow value=$34000
interest rate of company in one year=17 percent
Total interest in a year =$34000×
total interest=$5780
Total payment in one year=$34000+$5780
Total payment=$39780
You will pay $39780/12 or $3315.00/month according to company statement.
The answer is "A" (demographics) just took the PF test