Answer:
c. made a contract in State
Explanation:
Jurisdiction is the ability of a court to sue a person and ask him to come to court. Of a court does not have a jurisdiction on a person they will not be able to issue a judgement on that person.
Long arm jurisdiction is one that enables a court prosecute a person that does not reside in the state.
However the person must have sufficient minimum contact in the state to enable the state prosecute him.
For example if a person makes a contract in a state and violates that contract, the state can prosecute him even if he lives in another state.
Answer:
The correct answer is: raise interest rates and restrict the availability of bank credit.
Explanation:
A restrictive monetary policy is also known as contractionary monetary policy. It aims to decrease the aggregate demand by reducing the supply of money in the economy.
It involves a number of tools that raise the interest rate and make borrowing expensive. In this way, it restricts liquidity in the economy.
There are a number of tools that can be used to implement this policy, for instance, sale of securities in the open market, increasing discount rates, increasing reserve ratio, etc.
Answer:
B. False
Explanation:
Capital Asset Pricing Model (CAPM) is an indicator that shows the relationship between the expected return and the risk of investing in a particular security.
This model is used to examine securities and their given prices, haven stated the expected rate of return and cost of capital involved.
CAPM is used by investors to make wise decision before investing their funds in a particular security.
The answer is true.
hope this helped :)
Answer:
The debt-equity ratio need to be 1.01 for the firm to achieve its target WACC
Explanation:
In order to calculate the debt-equity ratio we would have to calculate the following formula:
debt-equity ratio=Weight of debt/Weight of equity
To calculate the Weight of debt we would have to use the formula to calculate the WACC as follows:
WACC = Wd×Rd×(1-t)+We×Ke
Therefore, according to the given data:
11.20% = Wd×8.70%×(1-35%)+(1-Wd)×16.80%
11.20% = Wd×5.655%+16.80%-16.80%×Wd
11.145%×Wd = 5.60%
Weight of debt=0.5025
Weight of equity=1-Weight of debt
Weight of equity=1-0.5025
Weight of equity=0.4975
Therefore, debt-equity ratio=0.5025/0.4975
debt-equity ratio=1.01
The debt-equity ratio need to be 1.01 for the firm to achieve its target WACC