The rites and rituals are considered to be ceremonies and
activities in which should be placed on the space provided because they are use
for occasions in a way of celebrating a specific group or organization that has
set an example above.
You have a question, but you’re afraid to ask it,You don’t want to look foolish, stupid, or inattentive in front of your peers. You say nothing, and having not asked, you never learn what you need to know.
Answer:
The insufficient expected low cash flows from investment caused by low demand for goods and services by the household.
Explanation:
A recession refers to contraction of the business cycle when economic activity fall generally.
In order to get out of recession, governments usually employ macroeconomic policies like increasing government expenditure, reducing taxation, and increasing money supply. When the money supply is increased, it leads to fall in the interest rate.
Interest rate is a cost of investment; and it is expected that investment will rise when the interest rate falls. However, this was not so during the US credit crisis despite that U.S. interest rates were extremely low majorly due to low demand.
During the credit crisis, there was a general low demand for goods and services by the household. This made businesses to be discouraged from investing in new projects, because it was expected that low demand will lead low cash flows from the investment.
The insufficient expected low cash flows was therefore the major factor that discouraged businesses to borrow cheap funds that were allowed by the extremely low interest rate.
I wish you the best.
Answer:
b. Maximize owner's wealth.
Explanation:
The owners wealth is usually measured by the financial behaviour of shares. In that sense we can find two reasons why is so important for the firm's management.
1. The managers recieve a greater compensation when the performance of the share increases their value. The managers have an incentive in order to keep the price of shares high.
2. Is a market oriented reason. For shareholders, consumers, banks and stakeholders, a good performance of the share is a positive signal for future investments, quality of the services and products and stability in the long run.
Answer: 9.81%
Explanation:
Cost of capital = (cost of debt * weight of debt) + ( cost of equity * weight of equity)
Cost of Equity = Risk free rate + beta * Market risk premium
= 8% + 0.59 * 6%
= 11.54%
Cost of capital = (8% * 49%) + (11.54% * 51%)
= 9.81%
