Answer:
b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.
Explanation:
A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.
In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).
Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.
Answer:
The answer is Roth IRA
Explanation:
Definition: an individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.
Answer:
the target selling price is $76.70
Explanation:
The computation of the target selling price is shown below:
= Total cost + 1 × markup percentage
= ($17 + $6 + $3 + $19 + $1 + $13) × (1.30)
= $76.70
hence, the target selling price is $76.70
We simply applied the above formula so that the target selling price could be determined
You can learn about the financial strength of an insurance company by checking<u> Standard & Poor's</u> rating system.
Monetary typically refers to cash matters or transactions of some length or importance: a financial wizard. fiscal is used particularly in reference to authorities' finances, or the ones of any enterprise: the top of the monetary yr. financial relates especially to cash as such: an economic device or standard.
Money is a part of finances, but finance consists of numerous different things as properly. money acts as a medium of alternate, shop of cost, a unit of account, and sometimes it is able to additionally act as a widespread for deferred bills. Finance: that is the observation of money and entails planning to apply it.
Economic motives mean that respondents did not observe for legal useful resources because they didn't assume they could be eligible beneath a means take a look at or had been refused felony aid due to the fact they failed a means test.
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<span>This is why the threat of potential entrants in this industry is so high. Because of all of the opportunities and financing plans, it is easy for someone who wants to start a restaurant to do so. The threat of potential entrants to other restaurants remains high because of new restaurants always popping up.</span>
