Answer:
A) Company A is the one that is financially leveraged.
Where there is the presence of debt in the capital structure of a firm, that firm is said to be Financially leveraged.
B) A is true.
A company's return on equity or expected returns increases because the use of leverage increases stock volatility. Volatility increases its level of risk which in turn increases returns. This happens only if the company is operating an ideal level of financial leverage.
On the other hand, however, but excessive debt can increase the risk of default and can lead to low returns or even bankruptcy.
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Answer:
$555,000
Explanation:
Calculation for the amount that will be reported for consolidated cash after the acquisition is completed
Cash at Kirkwood Inc $475,000
(900-400-15-10)
Add Cash at Soufflot Company $80,000
Consolidated cash after acquisition is completed $555,000
Therefore the amount that will be reported for consolidated cash after the acquisition is completed will be $555,000
Explanation:
It is given that in the market there are four equal-sized firms that produce similar products. The market is saturated such that 10% industry-wide price rise would lead to 18% decline in units sold by all firms in the industry. Going further, there is a proposed legislation that imposes a tariff on a key input used by the industry, which on realization would result in the increase in marginal cost by $2.
This means that the market elasticity of demand is:
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In 2003 the presidents of the African countries of Mali and Burkina Faso <span>requested that rich countries apply free trade rules to those products where poor countries have a proven competitive advantage.</span><span>
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