Help!! ill mark brainliest! plzz due today

As EBIT drops, the return on equity (ROE) of a levered firm drops ______ the ROE of an otherwise identical unlevered firm.

Pepsi [2]

Answer:

Relatively more than

Explanation:

As we know,

The levered firm is that firm in which debt is involved whereas unlevered firm is that firm in which there is no debt involved.

As if the EBIT drops, the return on equity drop is relatively more than the ROE of unlevered firms due to involvement and not involvement of debt. As it generated high risk and return which is gradual increases during a given period of time

3 0

3 years ago

Suppose the civilian non-institutional population equals 100,000 persons; the civilian labor force equals 75,000 persons; there

Llana [10]

Answer:

the total labor force for the first part of the question = 75,000 and 5,000 are unemployed, therefore, the unemployment rate = 6.67%

if 5,000 more people enter the labor force, then the total labor force = 80,000 people. Out of the total, 8,000 are unemployed, therefore, total unemployment = 8,000 / 80,000 = 10%

on the other hand, the employment rate = total employed / total population will also increase. The original employment rate = 70,000 / 100,000 = 70%

Then as 2,000 more people were employed, the employment rate increased to 72,000 / 100,000 = 72%

8 0

3 years ago

Why is it smart to keep you cool when making claim, and how should you go about it?

svetlana [45]

Answer:

Explanation:

Keeping cool while making a claim ensures clear explaination and direct tone of the message, which when directed towards the company. It helps the insurer work peacefully. Insurer will be happy to clear the claims of people who are cooperative and don't overplay with the value of the claim.

8 0

4 years ago

The basic characteristic of the short run is that: Group of answer choices barriers to entry prevent new firms from entering the

stealth61 [152]

Answer: the firm does not have sufficient time to change the size of its plant the firm

Explanation:

In the short run a company is unable to change the size of its plant along with other fixed costs so the production capacity is limited. This is why in the short run, there is a limit to how much supply can increase in response to an increase in demand.

In the long run however, the company would have been able to increase its plant and its production capacity by extension as it would have had enough time to do so.

5 0

3 years ago

Marigold Corp. has old inventory on hand that cost $12000. Its scrap value is $14000. The inventory could be sold for $30000 if

vfiekz [6]

Answer: Manufacture Inventory further and sell for $30,000

Explanation:

To make this decision we would have to calculate the benefit that could be acquired from manufacturing further.

Amount net benefit if manufactured further and sold for $30,000

= 30,000 - 12,000

= 18,000

There would be a net benefit of $18,000 of manufactured further.

If Marigold Corp. sold at the scrap value there would get $14,000.

We can see that Manufacturing further and selling for $30,000 is the better option as it brings more money. It should therefore be chosen.

4 0

3 years ago

Read 2 more answers