Answer:
They should not make the change because the price of the stocks will decrease.
Explanation:
the current price of the stocks using the perpetuity formula = dividend / required rate of return
current price with current capital structure = $5.64 / 0.123 = $45.85
if the company changes its capital structure by increasing debt, the price of the stocks will be
$5.92 / 0.136 = $43.53
since the price of the stocks would actually decrease if the capital structure changes, the change should not be made. The stockholders' wealth is measured by the price of the stocks, and if the price of the stocks decreases, then the stockholders' wealth also decreases.
Answer:
A production possibilities frontier identifies the dollar cost of producing a good or service in an economy.
True
Explanation:
Cost of producing could be envisaged through budgeting where the variable cost, fixed cost and total cost is expected to be calculated either through rough estimate.
Answer:
b. social benefits will be greater than private benefits
Explanation:
Positive externalities can be defined as those that produce positive effects for society in relation to the consumption of a good or service.
This is because the social benefit is the sum of the private benefit plus the sum of the external benefit.
An example of positive externality pertinent to the present is the fact that vaccinating people generates greater positive effects on society, because when vaccinating an individual there is less chance of having more people infected with some disease.
So it is correct to say that the social benefits will be greater than the private ones. Letter b.
Answer:
The correct answer is True.
Explanation:
Whenever a conflict arises within the classification of projects between the expected monetary value and the standard deviation, the coefficient of variation is used to try to solve the problem. For this reason, it is concluded that the coefficient of variation is a standardized measure of risk.
Answer:
Option C because it is impossible to determine the legality based on the facts given.
Explanation: