Answer:
True
Explanation:
Im sorry please forgive me I messed up big time
Answer:
Please help me bro i have an exam
A combination of one put and one call on the same stock with the same exercise price and date is known as a <u>b. straddle</u>.
Normal physical interest can improve your muscle energy and boost your patience. Exercising promises oxygen and vitamins to your tissues and enables your cardiovascular device paintings greater successfully. And when your coronary heart and lung fitness improve, you've got greater energy to address everyday chores.
As a standard aim, purpose for at the least 30 minutes of slight bodily interest every day. if you want to lose weight, maintain weight reduction, or meet unique fitness dreams, you could want to exercise more. Reducing sitting time is crucial, too. The extra hours you sit down each day, the higher your chance of metabolic troubles.
Having more of them increases your body's energy delivery. exercise also boosts oxygen circulating inside your frame. This increase in oxygen no longer simplest helps the mitochondria's power manufacturing, it allows your body to feature higher and to use its power extra correctly.
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Answer: Yes, borrowing creates value for equity shareholders. This is mainly as a result of tax benefits of interests paid on borrowings
Explanation:
Yes, borrowing does create value for the equity shareholders, this is mainly as a result of tax benefit of interests paid on borrowings.
If leverage causes changes, then it should lead to changes in either the discount rate of the firm(which is weighted-average cost of capital) or changes in the cash flows of the firm.
Leverage causes changes in both discount rate (WACC) and not on the cash flows to the firm. Since, WACC is known as the weighted average of cost of debt and cost of equity and since the cost of debt is usually less than the cost of equity, the WACC decreases with increase in borrowings, when the equity beta does not change. Furthermore, as the cash flows to firm is calculated before the interests paid on borrowings, the increased borrowings wont affect the Value of asset (FCFF) .
Cash flow is discounted at the rate that is consistent with the risk of those cash flow. At the cost of capital for the unlevered firm, pure businesses should be discounted. Financing flow needs to be discounted at the rate of return required by the provider of debts.
