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Lady bird [3.3K]
2 years ago
15

Financial markets make the process of borrowing large amounts of money easier because they simplify the negotiation process betw

een borrowers and lenders. This is an example of:
Business
1 answer:
Mekhanik [1.2K]2 years ago
3 0

Answer:

Reducing risk

Explanation:

The two ways by which risk can be managed are;

✓ Risk avoidance

✓ risk reduction

risk reduction are activities needed to bring about lower likelihood of risk as well as severity of loss. We can reduce risk through reduction of allocation of our resources to risky situation. An example of reducing risk is in the instance of Financial markets that are making the process of borrowing large amounts of money easier because they simplify the negotiation process between borrowers and lenders.

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Nothing can stay the same
alexandr402 [8]

Answer:

:-) -,-

Explanation:

thanks thanks appreciate it

6 0
2 years ago
Read 2 more answers
using the scenarios in case exhibit 9, what role does leverage play in affecting the return on equity (roe) for cpk? what about
motikmotik

Using the scenarios in case exhibit 9, Leverage will always lead to an increase in the total rate of return in the equity because leverage will be increasing the interest tax Shield due to which it can be seen that the total market value of the company has increased with a higher amount of debt capital.

The cost of capital is generally decreasing with a higher amount of leverage as there will be benefits associated with interest tax shield.

It can be noticed that when a high amount of leverage is used by the company, it is eventually leading to a higher amount of market value for the company as well so higher leverage is leading to a higher amount of market value for the company so leverage is directly related to increases in the market value as high amount of leverage will be increasing the total market value.

Leverage is an investment strategy that uses borrowed money (specifically, the use of various financial instruments or borrowed capital) to increase the potential return on investment. Leverage can also refer to the amount of debt a company uses to fund its assets.

Leverage is the amount of debt a company has in its debt-equity combination (capital structure). A company with more debt than the industry average is considered highly leveraged. The definition of leverage is the act of leverage or force to influence a person, event, or thing. An example of a lever is the action of a seesaw. An example of leverage is being the only person running for class president. noun.

Learn more about  Leverage here

brainly.com/question/3966216

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6 0
1 year ago
​Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $ 40 comma 000 i
notka56 [123]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

The company forecast sales:

January= $40,000

Variable and fixed selling and administrative expenses are as​ follows:

Variable​ Expenses:

Power cost ​(30​% of​ sales)

Miscellaneous​ expenses: ​(5​% of​ sales)

Fixed​ Expenses:

Salaries​ expense= $10,000 per month

Rent​ expense: $5,000 per month

Depreciation​ expense: $1,200 per month

Power​ cost/fixed portion: $800 per month

Miscellaneous​ expenses/fixed portion: $1,200 per month

Total= $18,200

For January

Total variable cost= 40,000*0.3 + 40,000*0.05= $14,000

Total fixed cost= 18,200

Total cost= $32,200

6 0
3 years ago
Read 2 more answers
You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e
Artemon [7]

Answer: $28.30

Explanation:

Given the following :

Expected Dividend = $1.70

Earning from share sale at year end = $30

Expected rate of return on investment = 12%

Maximum price of stock :

(Earning from share + expected Dividend) / (1 + return rate)

(30 + 1.70) / ( 1 + 12%)

(30 + 1.70) / (1 + 0.12)

(31.70) / (1.12)

= $28.303571

= $28.30

3 0
3 years ago
Define mutual fund economics.​
fredd [130]

Answer:

a mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. a mutual fund portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Explanation:

Hope this helped Mark BRAINLEST!!!

6 0
2 years ago
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