Answer:
B) channel funds directly from lenders to borrowers.
Explanation:
The complete financial system is a means by which money is transferred from savers to borrowers. The financial system is made up of banks, insurance companies, financial markets, and other financial institutions that allow the exchange of money.
Financial markets are the only type of institution that allows the exchange of money from lenders to borrowers without third parties being involved.
A public company can issue common stock to the shareholders of acquisition targets, which they can then sell for cash. This approach is also possible for private companies, but the recipients of those shares will have a much more difficult time selling their shares.
Multiply the number of shares issued by the price per share. Doing this calculation gives you the amount of cash raised by the sale of the stock. For example, if the company issues 100 shares at $10 per share, the result is $1,000 of additional capital raised from stock issuances.
Answer:
Continue operating; $699
Explanation:
The equilibrium price is $10.
MR = MC at 233 units of output.
At this output level, ATC is $12, and AVC is $9.
The AFC or average fixed cost
= ATC - AVC
= $12 - $9
= $3
The total fixed cost
=
=
= $699
The equilibrium price is able to cover the average variable cost so the firm should continue production in the short run.
Answer: $74,000
Explanation:
The Average Investment refers to the average cash invested into a particular project and is useful in calculating the rate of return. The simple formula is to add the beginning value of the asset to its ending value and divide this by 2.
The ending value in this case would be the salvage value;
Average Investment =
=
= $74,000
Answer:
$19,525,000
Explanation:
Calculation to determine the free cash flow
Using this formula
Free cash flow=Net cash provided by operating activities-cash spent for plant assets-Dividends
Let plug in the formula
Free cash flow=$155,985,000-$132,295,000-$4,165,000
Free cash flow=$19,525,000
Therefore The Free cash flow is $19,525,000