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Allushta [10]
3 years ago
8

The chapter argues that investment depends negatively on the interest rate because an increase in the cost of borrowing discoura

ges investment. However, firms often finance their investment projects using their own funds.
If a firm is considering its own funds (rather than borrowing) to finance investment projects, will high interest rates discourage the firm from undertaking these projects? Explain.
Business
1 answer:
WARRIOR [948]3 years ago
8 0

Answer: Yes they will.

Explanation:

With high interest rates, the company will be able to make better returns if they invested the money and took advantage of those interest rates instead of spending the money on their project.

Assets like bonds will be better to go into because they will offer a return based on the higher interest rates which will bring in good returns.

The company is free to use those funds to invest in projects if these projects will lead to a better return than could be gotten from holding bonds but if that is not the case, they should simply buy bonds and hold them for superior returns.

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You are a member of a team of eight individuals from the same department who meet for a few hours each week to discuss ways of i
Mumz [18]

Answer:

True

Explanation:

A team of eight individuals from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment are most likely a self-managed work team.

A self-managed work team is a self-organized, semi-autonomous <u>small group of employees whose members determine, plan, and manage their day-to-day activities and duties under reduced or no supervision.</u>

A self-managed work team can also be referred to as a self directed team or self-managed natural work team.

5 0
3 years ago
Read 2 more answers
During the initiation phase, what does project selection help to do
Strike441 [17]

Answer:

During the initiation phase, what does project selection help to do?

The initiation phase entails the starting point of the project, project selection comes in after the scope, objectives and how it would be delivered has been defined thoroughly. Project selection helps to make decision to know when the project would be ready for delivery, also the format of execution would be known, furthermore, any deviation from the initiation would be detected early and corrected if there is any

Explanation:

5 0
3 years ago
If bids on keywords in a bid strategy are manually overwritten, how long will it take for the bid strategy to resume bidding on
muminat

Answer: 24 hours

Explanation:

When the max CPC is manually overriden, the new max CPC will remain for 24hours, this would make the search Ads 360 optimization system not to update the max CPC during this time. After 24hours margin, the search Ads 360 will resume optimizing your bids inorder to meet the goals of bid strategy in turn starts the max CPC manually.

5 0
2 years ago
A preferred share of Coquihalla Corporation will pay a dividend of $8 in the upcoming year and every year thereafter; that is, d
ki77a [65]

Answer:

Intrinsic value is $114.30

Explanation:

Given:

Dividend paid = $8

Required rate of return = 7% or 0.07

There is no growth in dividends.

Calculate price of preferred share using DDM as shown below:

Price of preferred share = Dividend paid ÷ Required rate of return

                                          = 8 ÷ 0.07

                                          = $114.28 or $114.3

Therefore, price of preferred share is $114.30

6 0
3 years ago
A regional trucking company landed a contract to supply products for a major retailer. To do this, it needs to hire an IT profes
Zigmanuir [339]

Answer: • set up the computer hardware for the database.

• Set up the computer software for the database.

• train designated employees to use the database

• protect the confidentiality of the database

Explanation:

The options include:

a. Set up the computer hardware for the database

b. Set up the computer software for the database

c. train designated employees to use the database

d. Design a help page to show people how to use the database

e. protect the confidentiality of the database

Since the new hire is an IT professional who is employed to create a shipment database, the individual should be able to:

• set up the computer hardware for the database.

• Set up the computer software for the database.

• train designated employees to use the database

• protect the confidentiality of the database

7 0
3 years ago
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