Answer:
a. is now lower than it was before, and so Hydro Grow is less likely to build the building.
Explanation:
The interest rate increase will reduce the net present value of the project as the lenders of fund will demand more interest and since the Weighted Average Cost of Capital of the project will increase. The increased WACC will cause the project to be more riskier and since the future benefit of the project will be reduced.
Answer:
The answers are:
- decrease; increase
- moral hazard; increase
Explanation:
When you deposit money in your bank account, you know that the money is safe ad even f the bank goes bankrupt, you will be able to get your money bank. That is exactly what deposit insurance does, it increases the public trust in banks.
But if bank customers feel too safe about deposit insurance, they might forget to look for the best bank possible to hold their savings. If it doesn't matter what bank you use to save money, since you are guaranteed to get your money back, you might choose any bank without even checking how its performing.
This would be job order production because it’s the each customized product that is manufactured separately!
Hope this helps.
Current market prices reflect all information contained in past price movements. this statement is consistent with weak form efficiency
Market efficiency is the degree to which current prices accurately represent all pertinent and available information regarding the true worth of the underlying assets. Since all information that is available to traders is already factored into the market price, a truly efficient market makes it impossible to outperform the market.
Market efficiency states that prices reflect all information at any one time about a specific stock or market. An informationally efficient market is one in which the current price of a stock has taken into account all available information about that stock.
To learn more on Market Efficiency
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Answer:
D) $2,900.
Explanation:
The computation of the net income is shown below:
= Revenue on account - Expenses for the period
= $5,000 - $2,100
= $2,900
To determine the net income we subtract the expenses incurred for the period from the revenues so that the accurate amount could come.
This net income would be reflected at the time of preparing the retained earning statement
