Answer:
The correct answer is that it permits or allows a more accurate determination or ascertainment of the working capital.
Explanation:
Current maturities of the long term debt means that the portion or part of the liabilities of the company which are due in the next twelve months. And the working capital is the capital of business which is needed for daily operations of the business.
So, the present maturities of the debt which is long term, allows the more true and accurate ascertainment of the working capital.
Answer:
If a purely competitive firm shuts down in the short run: it will realize a loss equal to its total variable costs.
Explanation:
Shutting down in the short run is a proactive action undertaken by competitive firm to to avoid losses.
Otherwise, if they continue production, they will accrue more losses from operating cost.
in the short run, the firm has is committed to pay spend on recurrent expenditure and even if the firm produces a quantity of zero, it would still make losses because it would still need to pay for its fixed costs such as rent and insurance,
Therefore, competitive firms shut down in the short run so that they can reduce variable costs to zero.
Answer:
7.1
Explanation:
Interest rate = Coupon payment / Face value
8% semi annually will be 16% = 160 / 1000
At 90% of par, loan interest = 160 / 900
= 18% or 9% semi annually
Therefore the after tax cost of debt which is given by kd(1-t) = 9% (1 – 0.21)
Cost of debt = 7.1% or 7.1
Answer:
c. 3 loaves of bread for Andy and 1 loaf of bread for John.
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
For Andy, the opportunity cost of producing 1 pound of butter is = 24 / 8 = 3
For John, the opportunity cost of producing one pound of butter is 8/8=1
I hope my answer helps you
Answer:
1) Region B has the Democratic Republic of the congo, Angola, Cameroon, and Chad. 2) central Africa
Explanation: