<h2>Establish a business environment that promotes and rewards is the choice which the Prime Minister likely to choose.</h2>
Explanation:
The motto here is to increase the wealth of the country.
Option 1: Invading other countries is unethical and also, it cannot assure that, Cantlivia will improve. The reason is the country which the option says is poorer than Cantlivia, so point of growth could be seen.
Option 2: Already the country economy is down, so purchasing new tools is not possible hence this option is invalid.
Option 3: We can increase wealth only by creating business and creating entrepreneurs. So this is the right choice.
Option 4: Creating a barrier will actually slow down wealth. So this option is not right.
Answer:
Annual interest rate= 3%
Explanation:
Giving the following information:
Present value= $9,850
Future value= $10,000
Number of days= 182
<u>First, we need to calculate the daily interest rate. We will use a financial calculator (the formula is incredibly difficult to use):</u>
<u></u>
Function= CMPD
n= 182
I%= SOLVE = 0.0083
PV= 9,850
FV= -10,000
<u>Now, the annual interest rate:</u>
Annual interest rate= 0.0083*365= 3.02 = 3%
Answer:
Market price; Equilibrium price
Explanation:
The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the point at which the demand and supply curves in the market intersect. It become hard to reach equilibrium price and quantity when customers infer the quality of a product by its price cos that will inform their purchasing decision.
Answer:
The company's degree of operating leverage is closest to $840000
Explanation:
Selling price per unit = Sales revenue / No. of bags sold
= $1560000/200000 bags = $7.8 per bag
Variable cost per unit=Total variable expenses/No. of units
= $840000/200000 units = $4.2 per bag
Company’s unit contribution margin = Selling price per unit-Variable cost per unit
= $7.8 per unit-$4.2 per unit = $3.6 per unit
Company's degree of operating leverage = Variables manufacturing expense + Variable selling and administrative expense
=$660000+$180000 = $840000
Answer:
Existing Equity = 20 million
Existing debt = 60 million
Total capital = 20 million + 60 million = 80 million
a. Given company issued 30 million of equity to retire debt
Equity after raise = $20 million + $30 million = $50 million
Debt = $60 million - $30 million = $30 million
Total capital size remain at $80 million
Capital structure, Equity = $50 million/$80 million = 0.625 = 62.50%
Debt = (1-0.625) = 0.375 = 37.50%
b. The market would welcome the new issue as the risk of the firm would be reduced.
