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shepuryov [24]
2 years ago
10

Review each of the following statements to determine which is correct regarding the importance of assessing a company's risk of

paying debt.
a) A company that finances their assets by borrowing will need to make enough money to pay off the debt.
b) Assessing a company's risk of paying off debt is not required when the company is highly leveraged.
c) If a company has a lot of debt, they may not be able to afford to take on new debt.
d) A company's required debt payments may be greater than its ability to generate money to make those payments.
Business
1 answer:
Pavlova-9 [17]2 years ago
7 0

The correct statement regarding the importance of assessing a company's risk of paying debt is when a company finances their assets through borrowing and will need to make enough money to pay off the debt.

Financial Risk is defined as the possibility of making a loss or a gain on a particular investment.

As a result of this, it is important that a company makes a good risk assessment to find out if there is a good chance of paying off a debt.

The importance of this is to make sure that there is enough money to settle the debts through income.

Therefore, the correct answer is option A

Read more here:

brainly.com/question/14769544

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From the 1970s through the 1990s, the relative price of a college education has increased greatly. During the same time period,
Gala2k [10]

Answer:

C) the demand curve for a college education has shifted rightward

Explanation:

If college enrollment has also increased, it means the demand for college education has increased. The demand curve for a college education has shifted rightward.

I hope my answer helps you

3 0
3 years ago
How is the market supply curve derived from the supply curves of individual producers?.
NNADVOKAT [17]

The way that the market supply curve is derived from the supply curves of individual producers is by horizontally adding the individual supply curves.

<h3>How is the market supply curve estimated?</h3>

The market supply curve is estimated by adding up all the individual supply curves in the market. This therefore shows the total amount os supply for a good or service in the market.

The way that this addition is done is by horizontally adding the supply curves. What this means is that the quantities that are being offered by each individual suppliers at the various prices in the market, are added up to come up with the market supply curve.

Options for this question are:

  • a. finding the average price at which sellers are willing and able to sell a particular quantity of the good.
  • b. vertically summing individual supply curves.
  • c. finding the average quantity supplied by sellers at each possible price.
  • d. horizontally summing individual supply curves.

Find out more on the market supply curve at brainly.com/question/26430220

#SPJ1

8 0
1 year ago
If you take out a loan, which two things do your loan payments go toward?
Alborosie
Shelter and food? unless you have that loan for something else
5 0
3 years ago
Read 2 more answers
What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 6%
Varvara68 [4.7K]

Answer:

21%

Explanation:

We can calculate the expected return of a firm by add dividend yield and growth rate but in this question, the growth rate is not given therefore we will find growth rate first with the available data

DATA

Payout ratio = 0.4

Return on equity = 25%

Dividend yield = 6%

Solution

Growth rate = Return on equity x retention ratio

Growth rate = Return on equity x (1 - payout ratio)

Growth rate = 25% x (1-0.4)

Growth rate = 25% x 0.6

Growth rate = 15%

Expected return = Dividend yield + growth rate

Expected return = 6% + 15%

Expected return = 21%

6 0
3 years ago
Brenda has been trying to lose weight and control her seemingly insatiable sweet tooth. to meet her goal, she has removed all co
mamaluj [8]

Brenda is practicing stimulus control

Hope this helps, Happy Valentines day (:

6 0
3 years ago
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