Answer:
$278,000
Explanation:
Data provided:
Total invested capital or assets = $695,000
Total debt to total capital ratio = 40%
now,
= 
or
Total debt = 0.4 × Total capital
or
Total debt = 0.4 × $695,000
or
Total debt = $278,000
Hence,
The firm must borrow $278,000 to achieve the desired ratio
The annual premium that would result in Stephanie's annual out-of-pocket expense that is about the same as her current plan is <em>b. $0. 28 per $100 of value.</em>
Data and Calculations:
Home value = $355,000
Annual premium rate = $0.42 per $100
Deductible $500
Total annual out-of-pocket expense = $1,991 ($355,000 x 0.0042 + $500)
New deductible = $1,000
New annual premium rate = $0.28
Total annual out-pocket expense based on the new premium rate = $1,994 ($355,000 x 0.0028 + $1,000)
Thus, the annual premium that would result in Stephanie's annual out-of-pocket expense that is about the same as her current plan is <em>Option b.</em>
Learn more: brainly.com/question/18618915
A financial statements are helpful to the business owner, employees, and investors because:
- It helps to financial plan
- It helps to make decisions
- It helps to adhere to regulations etc
<h3>What are financial statements?</h3>
This refers to those written records that convey the business activities and the financial performance of a company.
Some examples of financial statements in every standard companies includes Income statement, Cash flow statement, Balance sheet, Note to Financial Statements, Statement of change in equity etc.
In conclusion, majority of firm's financial statement are audited by government agencies, accountants, firms to ensure accuracy, tax purpose, financing, investing purposes etc.
Read more about financial statements
<em>brainly.com/question/24498019</em>
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Answer:
production cost; opportunity cost
Explanation:
Answer:
False
Explanation:
Agency cost is a term used in Administration to describe a special type of expense that arises from conflicts of interest existing in an organization.Within the context of financial management, the main agency conflicts are:
-Between shareholders and managers :Theory of the principal — agent or the problem of the principal — agent is a theoretical model of economics designed to understand management situations between unequal actors having different degrees of awareness (asymmetric information): the person giving the order (principal) is usually located in the highest hierarchical position and awaits the solution of the task in his interests; on the other hand, the person executing the order (agent: manager or economic agent) is in the lower hierarchical position, but has more information than the principal and can use this information either in the interests of the principal or in his own interests. To solve this problem, various strategies are proposed, such as trusting relationships, general information systems, or focused incentives.
In general, to alleviate agency conflicts, shareholders bear the agency cost, which includes all the relative costs to make the interests of the managers aim to meet their own interests, which is to maximize the share price from the company. However sometimes the shareholders may want management to run the company in a fashion which increases shareholder value.
- Among shareholders and creditors.
