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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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Lucretia finds herself caught between loyalty to her employer on the one hand and loyalty to a friend who works in her office on
antiseptic1488 [7]

Answer:

conflict of loyalty  

Explanation:

In simple words, conflict of loyalty refers to a specific type of situation  in which an individual faces a conflict of interest due to having loyalty towards two different parties which have different goals and objectives.

This scenario usually happens when someone in authority has to make a decision that can affect party he or she have personal relation or with the other party with with which that individual have a professional relation.

As per the modern theories, under such scenarios, individual in authority should favor professional relations over personal relations.

8 0
3 years ago
Amazon Corporation has preferred stock outstanding that pays a $12.80 annual dividend. It price is $158. What is the required ra
nordsb [41]

Answer:

8.10%

Explanation:

The required rate of return (yield) on the preferred stock = Dividend / Price

= $12.80 / $158  = 0.0810126582278481 = 8.10%

5 0
2 years ago
A bank run involves:
Aleonysh [2.5K]

Answer:

The correct answer is letter "B": large numbers of depositors withdrawing their deposits within a short period of time.

Explanation:

A bank run is a situation in which account holders massively withdraw their funds under the fear the financial institution will lose its liquidity. The situation gets to a point in which the bank is at risk of sensing all its reserves and fail to provide all its clients the money they deposited.

In the U.S. financial institutions with deposits between $16 and $122.3 million must have a minimum reserve of 3%. When the deposits exceed $122.3 million the minimum reserve increases to 10%. The rest of the money is reinvested by banks.

5 0
3 years ago
A new opportunity arises for Quixote Metal Supply just before the holidays. A Request for Proposals (RFP) is distributed by the
kvasek [131]

Answer:

The correct answer is The minority decision  theory.

Explanation:

In this case, a meeting should be held in order to consider the opinions of the people potentially involved in the new project, since they know aspects of the work and can give better feedback to the management of the company. Considering that only half of the workforce is working, the decision they make will be a minority one, since it only includes a part of the employees who must decide for everyone in general.

7 0
3 years ago
How does the relationship between risk and expected return serve to allocate capital in a market?
Arte-miy333 [17]

The relationship between risk and expected return serves to allocate capital in a market. Investors want to maximize return for a given level of risk, so capital flows to its most efficient use.

There is a positive correlation between the level of risk taken and the level of return expected. The greater the risk, the greater the expected return and the greater the likelihood of suffering a large loss.

The relationship between risk and expected return is called the risk-return relationship. This is a positive relationship because the more risk you take, the higher the required return that most people demand. Risk aversion describes a positive risk-reward ratio.

Learn more about risk and expected return at

brainly.com/question/25821437

#SPJ4

7 0
1 year ago
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