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slavikrds [6]
3 years ago
5

True or false: a firm with a capital structure containing 70% retained earnings has a marginal cost of capital of $50,000. This

indicates that after the first $50,000 of capital raised, retained earnings can no longer provide the 70% equity position of the firms capital structure.
Business
1 answer:
ololo11 [35]3 years ago
6 0

Answer:

False

Explanation:

Marginal cost of capital is the total cost of debt and equity which is used to fund business operations. This denotes any additional capital raised to fund the business. If the capital structure has retained earnings of 70% and marginal cost of capital is $50,000. This means the additional cost to raise the fund will be $50,000.

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ikadub [295]

Answer:

Option A, buys dollars to raise the exchange rate, is the right answer.

Explanation:

Option A is correct because when the Fed will buy the dollars then only the demand for dollars will shift rightwards. Consequently, the dollar price or exchange rate will go up. Therefore, the Fed will buy the dollars to increase the exchange rate. In another case, if the Fed wants to decrease the exchange rate then it will sell the dollars, and selling of dollars will shift the supply rightwards. Thus, the exchange rate will fall.

6 0
3 years ago
The law of diminishing marginal returns holds for a situation in which Group of answer choices all inputs are variable. all inpu
Natasha_Volkova [10]

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Explanation:

Hope this helps!

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