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pav-90 [236]
2 years ago
8

Why does the cost of capital constitute a direct link between return on capital expenditure and the returns required by capital

investors
Business
1 answer:
Vinil7 [7]2 years ago
3 0

Answer:

The overview of the statement is summarized below.

Explanation:

  • The capital structure seems to be the ratio of net required by investors toward about there capital expenditure. Investment return capital spending seems to be the return rate required for expenditure.
  • Returns required by financial institutions are much worse than the amount of capital, even before investors necessitate a reasonable level of profitability.
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Choose the answer that best defines the marginal propensity to save (MPS). The share of all income earned that is devoted to sav
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Answer:

The share of each additional dollar of income earned that is devoted to saving rather than consumption.

Explanation:

The marginal propensity to save is defined as the fraction of increased income that is reserved for saving and not consumption, and it is the slope of the graph of income against savings.

For example if an individual earns an extra dollar and he has propensity to save of 0.5 that means out of the one dollar he will save 50 cents and spend the remaining 50 cents.

4 0
3 years ago
How would the Security Market Line be affected, other things held constant, if the expected inflation rate decreases and investo
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Answer: a. The y-axis intercept would decline, and the slope would increase.

Explanation:

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When the expected inflation rate decreases and the investors also become more risk averse, the Security Market Line would be affected, as the y-axis intercept would decline, and the slope would increase.

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2 years ago
Franktown meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the divid
Monica [59]

I guess the correct answer is $15.77

Franktown Meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2% annually thereafter. One share of this stock be worth six years from now is $15.77 if the required rate of return is 14.5%

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2 years ago
What are three skills you are likely to need as an entrepreneur?
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Networking skills,organization skills, listening skills, and speaking skills hope that helps
5 0
2 years ago
Read 2 more answers
What are the three riches nations in the world​
Rus_ich [418]

Answer:

1. Qatar

2. Macao SAR

3. Luxembourg

Explanation:

The 3 wealthiest countries in the world according to GDP (PPP) is Qatar - $134,623, Macao SAR - $122,201 and  Luxembourg - $108,813

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