Answer:
0.23
Explanation:
Debt to Equity Ratio = Total debt/ Total common equity
Market to book Ratio = Market price per share / Book value per share
Book debt to Market equity Ratio = Debt to Equity Ratio / Market to book Ratio
Book debt to Market equity Ratio = 0.69 / 3
Book debt to Market equity Ratio = 0.23
Therefore, the ratio is 0.23
1. Piecework
2. Salary
3. Hourly
4. Commission
<span>Do something you want to do. Only do it if you will enjoy doing it the rest of</span>
Answer:
a) Jacob will earn $600000. 5/6 of his annual salary will be economic rent.
b) The advertising company will not be able to make an economic profit because if they withhold some additional revenue made because of hiring person J, then person J will switch to another advertising company at a higher salary and that company keep on making profits. The company should bid for Person J until firms are indifferent between paying him $600,000 or hiring someone else for $100,000. Thus, the bidding of person J will continue until the salary of person J has bid up to a level where no company can make economic profits.
Explanation:
See the attached pictures for explanation.
Answer:
The bond that should pay the highest interest rate is:
d. a bond issued by a new restaurant chain.
Explanation:
This is based on the fact that the new restaurant chain is untested, has higher risk profile and the bondholders are assuming higher risks, and the bond cannot be compared to the bonds issued by the US government, New York State, and General Motors, in that order. The new restaurant chain will be offering a higher rate of return than others because it is new to the bond market and would like to attract potential bond investors. Without the higher rate, therefore, it will not be successful in the bond issuance.
