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diamong [38]
3 years ago
8

Solutions to the moral hazard problem include Select one: a. low net worth b. greater reliance on equity contracts and less on d

ebt contracts c. monitoring and enforcement of restrictive covenants. d. greater reliance on debt contracts than financial intermediaries
Business
1 answer:
Ksenya-84 [330]3 years ago
7 0

Answer:

C) monitoring and enforcement of restrictive covenants.

Explanation:

Moral hazard can be regarded as the situation which take place when an individual get some chances whereby he/she can take advantage of a financial deal or financial situation, when he/she knows that all the risks as well as fallout will be accounted to another party. moral hazard can be reduced by strong up policies which will prevent immoral behavior as well as regular monitoring. One of the Solutions to the moral hazard problem is monitoring and enforcement of restrictive covenants.

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Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock p
alina1380 [7]

Answer:

The theory which explains the phenomenon described in the question is referred to as "Dividend Signaling".

Explanation:

When a company announces that is will be paying dividends, stock market players percieve this as an indication of :

  1. Strenght
  2. Performance and
  3. Profitability.

Hence investors will find it more attractive to purchase such a stock.

Cheers!

7 0
2 years ago
Hadley, Inc. manufactures a product that uses $18 in direct materials and $5 in direct labor per unit. Under the traditional cos
Rama09 [41]

Answer:

Total Manufacturing cost per unit is $53

Explanation:

Manufacturing cost is the cost used to manufacture a product, both direct and indirect cost incurred in manufacturing process are included. It is the total value of material cost, labor cost and overhead cost.

Direct Material Cost = $18

Direct Labor cost  = $5 per hour

Manufacturing overhead applied = $13 per unit

Total Activity rate = $30

Activity based costing is the method of allocation of overhead to the products / department / projects on the basis of uses of activity by each one.As we know that calculating an activity rate which is similar to predetermined overhead rate.

Total Manufacturing Cost = Direct material cost + Direct Labor cost + Manufacturing overhead cost

As we know that calculating an activity rate which is similar to predetermined overhead rate. so the activity rate will be used for overhead expense.

Total Manufacturing Cost = $18 + $5 + $30 = $53 per unit

6 0
3 years ago
If you are holding a premium bond, you must expect a _______ each year until maturity. If you are holding a discount bond, you m
prisoha [69]

Answer:

i dont know lol hahhahahhah

Explanation:

5 0
2 years ago
Consumers often seek bargains by purchasing goods in large quantities; for example, buying in bulk at Costco or buying larger bo
Nimfa-mama [501]

Answer:

The correct answer is the option B: second-degree price discrimination.

Explanation:

To begin with, the term of price discrimination, in marketing and economics, refers to the action of charge different prices to different consumers for the same product that do not vary in quality. This concept states fourth differents degrees in order to use the most beneficial strategy to one's company.

To continue,<em> the second-degree price discrimination</em> establishes that companies price products differently based on the preferences of various groups of consumers and furthermore it is very common to <u>apply this type of discrimination through quantity discounts</u> and to add an example, is very common to use this strategy in <u>warehouse retailers such as Costco.</u>

6 0
3 years ago
Want is a trial balance​
Scrat [10]

Answer: A trial balance is a bookkeeping worksheet in which the stability of all ledgers are compiled into debit and savings account column totals that are equal. The typical purpose of producing a trial stability is to ensure the entries in a company's bookkeeping device are mathematically correct.

Explanation:

4 0
3 years ago
Read 2 more answers
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