Answer:
The full options for this answer are:
A. varies inversely to changes in market interest rates.
B. will generally exceed the cost of equity if the relevant tax rate is zero.
C. will generally equal the cost of preferred if the tax rate is zero.
D. is unaffected by changes in the market rate of interest.
E. has a greater effect on a firm's cost of capital when the debt-equity ratio increases.
The correct answer is E. has a greater effect on a firm's cost of capital when the debt-equity ratio increases.
Explanation:
The cost of debt refers to the effective rate that a company pays for its current debt. In most cases, this phrase refers to the after-tax cost of debt, but it also refers to the cost of a company's debt before taxes are taken into account. The difference in the cost of debt before and after taxes lies in the fact that interest expenses are deductible.
The cost of debt is a part of a company's capital structure, which also includes the cost of capital. A company can use various bonds, loans and other forms of debt, so this measure is useful to give an idea of the overall rate the company pays for its debt. The measure can also give investors an idea of the company's risk compared to others, because riskier companies generally have a higher cost of debt.
Answer: If i am the general manager of the organization i will try to make a survey about customer relation in other competitive organization before i can conclude whether it is wise to cut down cost through removing giving out free gifts to customers like the free pop corn, coffee etc. Customers will choose other organizations where they can get the same quality service and other benefits especially in a perfectly competitive market. Rather i will suggest more profit can be made by slightly increasing the cost of services rendered to customers from which the cost of the freebies can be regained.
Explanation:Customer's satisfaction and profit maximization are the two main objectives of a firm. It is only when an organization is able to maintain good customer relationship with their customers that profit can be maximized regardless of how efficient their other services are.
Answer:
A fruitworm infestation ruins a large number of apple orchards in Washington state.
Explanation:
The fruitworm infestation would reduce supply. The supply curve would shift to the left as a result.
I hope my answer helps you
Answer
D. A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.
Explanation:
As per the data given in the question,
Option (D) is correct among the given statements. A sunk cost is that cost which was occurred and expended in the past and if firm decides to do not go ahead, it can not be recovered.
For illustration - Think about the cost incurred to find out the feasibility of the project. Though in past firm was agree with the project but now even if the firm decides not to the project, this cost can not be recovered.
<span>When the developing country alpha breaks the rule of factories not being owned by the companies of developed country beta would imply that alpha is in a vulnerable position in its trade. So this means this would be an example of decline in trade and investment barriers.</span>
