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Olegator [25]
3 years ago
5

Which of the following statements describes the cost of capital?

Business
1 answer:
professor190 [17]3 years ago
8 0

Answer: The minimum rate of return on investments.

Explanation:

The cost of capital simply refers to the particular rate of return that a certain company expects to get from a certain investment that it does.

The cost of capital is the minimum rate of return which must be earned by a certain business before the generation of value.

The cost of capital therefore is the minimum rate of return on investments. It is the return which a company is expected to pay both the creditors and also the investors.

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Bank loans from the Federal Reserve are called ________ and represent a ________ of funds for the bank.
marishachu [46]

Answer:

B) discount loans; source

Explanation:

The central bank has a role in acting as the lender of last resort. Commercials banks and other institutions will turn to the Fed if they cannot borrow funds from any other sources. The central bank, through the Fed, uses the discount window facility to lend to commercial banks.

The loans that the fed advances to commercial banks are called the discount loans.  Discounts loans are short term in nature and are used to meet liquidity shortfalls. The interest rate that the Fed charge for discount window loans is the discount rate. Banks prefer to borrow from other banks because it is cheaper. If a bank cannot get funds from other banks, the discount loans serve a source of funds to the bank.

7 0
3 years ago
Competitive firms differ from monopolies in which of the following ways? (i) Competitive firms do not have to worry about the pr
Yuliya22 [10]

Answer:

The correct answer is all three options.

Explanation:

If price is reduced, the total revenue of perfectly competitive firm will not decline because a reduction in price will lead to increase in demand.

A monopoly firm is a price maker. It has a downward sloping demand curve. The demand curve is relatively elastic which means the firm needs to decrease price in order to sell more.

A firm in perfectly competitive market faces a horizontal demand curve,which means it can supply an level of output at the given price.

The demand curve in perfect competition reflects average revenue, marginal revenue and price. So, the price is equal to average and marginal revenue.

In a monopoly, the demand curve represents price and is higher than marginal revenue curve.

4 0
3 years ago
Borstorff and her associates examined a number of factors related to employee willingness and concluded that married couples wit
konstantin123 [22]

Answer:

The answer would be FALSE

Explanation:

There is no information necessary to answer the question but it is more likely that a couple with children will want to accept a job abroad because they have no responsibility such as child support, school, etc. for a child.

In the case of a couple with small children, they are less likely to agree to go elsewhere because of the expenses that this would imply.

3 0
3 years ago
Select the correct answer.
mars1129 [50]

Answer:

The correct answer is C) Potential for high growh and dividend payments

Explanation:

When you purchase a stock of a company, you do it because you expect the company to grow and have good financial results. If the company has a good financial statement at the end of the year, it will pay you a dividend, which is the proportion of the company's profits in relation to the number of shares that you possess.

For example, if company ABC earned a $1,000,000 profit in 2019, and you own 1% of shares, the dividend that you would recieve is : $1,000,000 x 1% = $10,000

7 0
3 years ago
Michael works as a financial advisor in a doctor’s office. The two organizations that Michael most likely belongs to are the
Zigmanuir [339]
<span>AFP and AMA

AFP american family physician
AMA american medical association</span>
8 0
3 years ago
Read 2 more answers
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