Answer:
A. Additivity
Explanation:
Additivity simply means that the values of an objective function and total resources used can be found by adding all the contributions made by the objective functions and the decision variables of all resources used. That is, it assumes that the overall of an objective function is found by adding the contribution of each objective function to the overall. In additivity, interaction between variables doesnt exist.
Answer:
see below
Explanation:
A firm may either opt to shutdown or declare bankruptcy if its making losses. A shutdown will involve ceasing operations and disposing of assets to pay creditors. Declaring bankruptcy shields the business from debt obligations or seizing of assets by its creditors.
Many businesses opt to declare bankruptcy because shutting down is costly. Except for properties, other assets are likely to be liquidated at costs below their book value. With the burden of debts shelved for some time, a business has a chance of bouncing back to profitability. A loss-making firm whose price is above the average variable cost should continue operating.
Answer:
The answer is option B. For a levered firm, flotation costs should <u>be spread over the life of a project, thereby reducing the cash flows for each year of the project.</u>
Explanation:
When a company’s securities are listed on a public exchange, there is a general saying that securities are floated on the exchange. That is how the name flotation costs came about.
Flotation is actually the costs incurred by a company in issuing its securities to public. it is also called issuance costs.
Examples of Flotation costs include charges paid to the investment bankers, lawyers, accountants, registration fees of the securities regulator and the exchange on which the issue is to be listed.
Flotation cost would vary based on several factors, such as company’s size, issue size, issue type (debt vs equity),
In summary, Flotation costs are the cost a company incurs to issue new stock making new equity cost more than existing ones.
Business analysts argue that flotation costs are a one-time expense that should be adjusted out of future cash flows in order to not overstate the cost of capital forever.
It is based on this premise that i chose option B, which states that flotation costs be spread over the life of a project thereby reducing the cash flows for each year of the project at levered firms.
Answer:
Understanding Demand-Pull Inflation
Demand-pull inflation is a tenet of Keynesian economics that describes the effects of an imbalance in aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. This is the most common cause of inflation.
Explanation:
hope it helps you
If Martin had 24 5 pounds of grapes left. The expression that shows the pounds of grapes martin has if he doubles his current amount is: (2) (2) (2) (four-fifths).
<h3>
Double amount of grapes</h3>
Given: Current amount of grapes=2 4/5=14/5
Double amount of grapes=2×14/5=28/5
Hence:
2(2)+(2) 4/5
=4+8/5
=28/5
The expression is: (2) (2) (2) (four-fifths) or 2(2)+(2) 4/5.
Therefore If Martin had 24 5 pounds of grapes left. The expression that shows the pounds of grapes martin has if he doubles his current amount is: (2) (2) (2) (four-fifths).
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