ok i got an answer that u might hate me for
STOP WATCH YOU TUBE AND PAY MORE ATTENTION IN CLASS
there is my answer^^^
hehe ; )
Answer:
The correct answer is True.
Explanation:
Financial leverage is the use of debt to acquire assets that generate more assets. It is a concept used in operations where the investment that is made is greater than the money that is actually available, so that with a lower amount of money a greater possibility of profit or loss can be achieved. Therefore, it implies a higher risk.
The main instrument for leverage is debt, which allows you to invest more money than is available thanks to what has been borrowed. But you can also achieve financial leverage through many other financial instruments, such as derivatives, futures or CFDs.
We can find three types of financial leverage:
- Positive leverage: this type of leverage occurs when the economic profitability (return obtained from assets) that occurs with the leverage operation is higher than the cost of the debt, that is, generally at the interest rate paid at bank for the loan.
- Neutral leverage: occurs when the economic return is equal to the interest rate paid on the loan. Employment or increased indebtedness does not cause variation in economic profitability.
- Negative leverage: it occurs when the economic profitability is lower than the interest rate that is being paid for the debt or for the funds obtained in the loans. In this case, obtaining the debt is unproductive.
Report it to the U.S Coast Guard National Response Center
Answer:
Explanation:
The main goal is to compare these two based on the same terms; present values. Find the present value of $500 today by discounting it using 10% interest rate over two years.
PV = FV/ (1+r)^n
where FV = Future value = $500
r = discount rate = 10% or 0.10 as a decimal
n = total duration of investment = 2
PV = $500/(1+0.10)^2
PV = $500/1.21
PV = $413.22
Since you are basing the decision on what you would rather pay, you would want a lower pay amount. The $425 is already in its present value terms and it is more expensive. Therefore, you would prefer to pay $500 in two years.
Answer:
See bekow
Explanation:
Number of direct labor hours = 555,000 / 15 = 37,000
Overhead cost = $57,000 + $158,500 + $28,800 + $22,100
