Using the scenarios in case exhibit 9, Leverage will always lead to an increase in the total rate of return in the equity because leverage will be increasing the interest tax Shield due to which it can be seen that the total market value of the company has increased with a higher amount of debt capital.
The cost of capital is generally decreasing with a higher amount of leverage as there will be benefits associated with interest tax shield.
It can be noticed that when a high amount of leverage is used by the company, it is eventually leading to a higher amount of market value for the company as well so higher leverage is leading to a higher amount of market value for the company so leverage is directly related to increases in the market value as high amount of leverage will be increasing the total market value.
Leverage is an investment strategy that uses borrowed money (specifically, the use of various financial instruments or borrowed capital) to increase the potential return on investment. Leverage can also refer to the amount of debt a company uses to fund its assets.
Leverage is the amount of debt a company has in its debt-equity combination (capital structure). A company with more debt than the industry average is considered highly leveraged. The definition of leverage is the act of leverage or force to influence a person, event, or thing. An example of a lever is the action of a seesaw. An example of leverage is being the only person running for class president. noun.
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Answer:
D
Explanation:
Well, this marketing cluster is made up of 7 components, if you need further support, be sure to contact me.
Answer:
60%
Explanation:
The computation of the utilization rate for the plant is shown below:
As we know that
Utilization rate = Actual output ÷ Design capacity
where
Actual output is 6,000 hammers per day
And, the design capacity is 10,000 hammers per day
So by considering the above information, the utilization rate is
= 6,000 hammers per day ÷ 10,000 hammers per day
= 60%
It is always expressed in a percentage form
Answer:
Here the correct option is (d) identified a problem or frustration; identified an opportunity or need.
Explanation:
Identified a problem or frustration; identified an opportunity or need. Airbnb began when Gebbia and Chesky identified a drag or frustration; the corporate grew because it identified a chance or need. that they had a drag of not having enough money to pay the rent, and that they identified a chance or need in letting strangers live there which they will afford, unlike an upscale bedroom.
