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Tems11 [23]
2 years ago
9

The concept of leverage is that a.a high debt-to-equity ratio is favorable. b.it is appropriate to borrow if the return on the a

ssets is greater than the cost of the financing. c.it is appropriate to borrow as long as the lender approves the loan. d.it is unfavorable to borrow funds rather than raise the capital from stockholders.
Business
1 answer:
Travka [436]2 years ago
7 0

Answer:

b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.

Explanation:

A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.

In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).

Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.

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The resources used to create wealth are collectively referred to as
vlada-n [284]

Answer:

profit potential

Explanation:

4 0
3 years ago
If 5.71 mL of the S2O32- solution are required to reach the endpoint of the titration, what is the molarity of S2O32- in the sol
BARSIC [14]

Answer: The question is incomplete as some details are missing. here is the complete question ; To standardize a thiosulfate (S2O32-) solution, 10.00 mL of a  1.25×10−2 M   IO3- solutionare treated with excess I- to generate I3- according to Equation 3 on page 162 in the lab manual. If  5.71 mL of the S2O32- solution are required to reach the endpoint of the titration, what is the molarity of thiosulfate in the solution?

Using this equation: I3(aq)+2S2O32-(aq)->3I(aq) + S4O62-(aq)

Explanation:

from the equation ; ClO(aq) + 3I(aq) + H2O(I) ------> I3(aq) + CI(aq) + 2OH(aq) (Equation 1)

from the equation ;  I3(aq)+2S2O32-(aq)->3I(aq) + S4O62-(aq) (equation 2)

from another equation ; IO3- (aq) + 8I-(aq) + 6H+(aq) ----> 3I3-(aq) + 3H2O(I) (Equation 3)

The balancing of equation (1) and equation (2) gives equation 3

Given molarity of IO3- (aq) = 1.25M x 10^-2

from the reaction concentration in equation 3; 1mole of IO3- (aq) gives 3moles of I3-(aq)

therefore moles of I3-(aq) = 3 x 1.25 x 10^-2 = 3.75 x 10^-2M

from the reaction in equation 2 ; I3(aq)+2S2O32-(aq)->3I(aq) + S4O62-(aq)

for I3-(aq), C1 = 3.75 x 10^-2M, V1 = 10.0mL, n1 = 1

for S2O32-(aq), C2 = ?, V2 = 5.71mL, n2 = 2

recalling that C1V1/N1 = C2V2/N2

C2 = C1V1 x n2/V2 x n1

Substituting; C2 = 3.75 x 10^-2M x 10.0mL x 2 / 5.71mL x 1

C2 = 0.131M = is the molarity of S2O32-(aq) in the solution

8 0
3 years ago
Just Born found that the improvement process emphasized in the management leadership program saved the company millions of dolla
Wittaler [7]

Answer: Results outcome

Explanation:

Just Born found that the improvement process emphasized in the management leadership program saved the company millions of dollars. This is an example of a results outcome.

This shows that the improvement process emphasized in the management leadership program brought about a positive outcome.

7 0
2 years ago
Who receives the benefits and profits from a joint-stock company?
mojhsa [17]

The one who receives the benefits and profits from a joint-stock company are the shareholders, the board of directors, from the higher hierarchy to the lowest position in the company can have benefits and can profit but it only depends on where in the hierarchy they are in to identify how much will they have.

6 0
3 years ago
Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be
ANEK [815]

Answer:

10%

Explanation:

This can be calculated using the nominal yield to maturity (YTM) formula as follows:

Yield to maturity = [C + ((F - P) / n)] / [(F + P) / 2]  ........ (1)

Where;

F = Face or par value = $1,000

C = Coupon or interest payment = $1,000 * 13% = $130

P = quoted price = $1,200

n = Years to maturity = 10

Substituting the values into equation (1), we have:

Yield to maturity = [130 + ((1,000 - 1,200) / 10)] / [(1,000 + 1,200) / 2]  = 0.10, or 10%.

3 0
3 years ago
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