Answer:
firm must borrow $288000 to achieve the target debt ratio
Explanation:
given data
assets = $720,000
debt to total capital ratio = 40%
to find out
How much must the firm borrow to achieve the target debt ratio
solution
we get here debt here by Debt to Total capital ratio that is express as
Debt to Total capital ratio = Debt ÷ ( Debt + Equity ) ....................1
put here value we get debt
0.40 = 
debt = $288000
so firm must borrow $288000 to achieve the target debt ratio
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Answer:
The required rate of return is r = 0.1475 or 14.75%
Explanation:
The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.
The equation is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.06 + 1.25 * (0.13 - 0.06)
r = 0.1475 or 14.75%
Answer:
The correct answer is letter "A": number of firms in an industry.
Explanation:
A concentration ratio measures the number of competitors within the same industry. The lowest concentration ratio of a firm, it represents there are more market rivals. The highest the concentration ratio, the lower the number of competitors of the firm. The ratio is expressed in percentage terms. A firm having a 100% concentration ratio is a monopoly.
Answer:
The correct answers to fill the blank spaces are not be; small
Explanation:
If a currency's spot market is liquid, its exchange rate will not be highly sensitive to a single large purchase or sale of the currency. Therefore, the change in the equilibrium exchange rate will be relatively small.
