The chances of a risk event occurring as a project proceeds through its life cycle tend to Slowly drop.
what is a risk event?A risk event is something that is uncertain and matters. Matters in the sense that it prevents objectives from being met. Similarly, an opportunity event is something uncertain and important — important in the sense that it contributes to the achievement of goals.
Any unforeseen or unexpected occurrence that can result in losses for investors or other stakeholders in a company or investment is referred to as event risk.Credit default swaps and other credit derivatives can be used to hedge against credit events such as default or bankruptcy.Natural disasters and theft, for example, can be mitigated by insurance policies that cover such risks.To learn more about risk events from the given link
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One valid criticism of the four ps concept of the marketing mix is that services are not considered an actual ""product.""
a. True
b. False
One valid criticism of the four ps concept of the marketing mix is that services are not considered an actual ""product"
This statement is true.
The four Ps are the key considerations which must be considered thoughtfully and wisely implemented in order to market a product successfully or service successfully. They are product, price, place, and promotion.
The four Ps are often known to as the marketing mix. They include a range of factors that are considered while marketing a product.
It includes what consumers want, how the product or service meets the wants of customers or fails to meet the wants.
It also includes how the product or service will be perceived in the world, how it stands out from the competition, and how the company which is producing it interacts with its customers.
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Your textbook notes a new form of policy experiment that would provide everyone with a guaranteed income called.
Your textbook notes a new form of policy experiment that would provide everyone with a guaranteed income called Universal Basic Income
What Is Universal Basic Income (UBI)?
Universal basic income (UBI) is a government program in which every adult citizen receives a set amount of money regularly. The goals of a basic income system are to alleviate poverty and replace other need-based social programs that potentially require greater bureaucratic involvement. The idea of universal basic income has gained momentum in the U.S. as automation increasingly replaces workers in manufacturing and other sectors of the economy .
Momentum for UBI
Universal basic income received considerable attention during the first stage of the 2020 presidential campaign after entrepreneur and former Democratic candidate Andrew Yang made the idea a cornerstone of his campaign. Yang’s “Freedom Dividend,” as he called it, would give every American over the age of 18 a $1,000 check every month. Those enrolled in federal assistance programs could continue to receive those payments or opt for the Freedom Dividend instead.
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Paul's investment strategy is to look for a rundown property, bring it up to snuff, and sell it for a quick profit. Paul is a?
Paul's investment strategy is to look for a rundown property, bring it up to snuff, and sell it for a quick profit. Paul is a Real estate investor.
What is an investment strategy?An investment strategy refers to planning and synchronizing data to gain the financial or economic goal of an individual. This strategy helps to focus on where to invest which generates maximum profit in return.
A real estate investor invests in properties and then resells them again and again within a short span of time to gain profit over this. Their works is to selling and buy properties from different areas and earn a profit when their prices are high.
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Why is it important that ""links live forever"" when designing an internet-based electronic commerce system?
"Links live forever" is very important when designing commercial internet based electronic sites. Link live forever has the following 4 important reasons:
Customer bookmarks Links from other sites Search engine referrals Old content adds valueWhen designing an electronic internet-based site, it is important that all the links live forever. The reasons are:
Customer bookmarks: When the website is live, customers who are interested in your specific product may bookmark that page for later use. For example, customers bookmark a link that navigates them later to that page. If the link is live, then customers visit that link/page again without any hassles. Links for other sites: Sometimes other sites link your link (website/page/product page) to some pages where they want to navigate the customer/visitor to their site. If the link is live, then customers/visitors easily visit your website/page/product page.Search Engine Referrals: Search engines rank the site on the content you are providing on the given link. When a search engine refers the visitor to your website, if it is life then the visitor will be served otherwise a dead link will disappoint both visitor and search engine. Old content adds value: Keeping the link of old content live adds value to your website and adds value for your user. Keeping links of old content live serves the visitors best because their interest may be renewed, searching about historical events, and searching for older information.So, it is very important to keep the links live forever of the commercial internet-based websites.
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An activity that fulfills a human want or need and returns money to those who provide it is known as:__________.
An activity that fulfills a human want or need and returns money to those who provide it is known as Services.
An "(intangible) act or usage for which a consumer, business, or government is ready to pay" is referred to as a service. Barbers, doctors, lawyers, mechanics, banks, insurance businesses, and other professionals are a few examples.
Public services are those that are funded by the entire society (a nation-state, fiscal union, or region). Service providers profit from resources, expertise, innovation, and experience to the benefit of service consumers.
The nature of service is intangible. Services are acts or performances that the service provider performs in order to benefit the client.
A customer's assistance and support are measured for their appropriateness and are referred to as service in a more restricted meaning. The retail industry commonly uses this specific phrase.
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During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory: Cases Cost
Estimated finished goods inventory, August 1 300 $12,000 Desired finished goods inventory, August 31 175 7,000 Materials Inventory: Cream Base (ozs.) Oils (ozs.) Bottles (bottles) Estimated materials inventory, August 1 250 290 600 Desired materials inventory, August 31 1,000 360 240
There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January.
Required:
1. Prepare the August production budget.
2. Prepare the August direct materials purchases budget.
3. Prepare the August direct labor budget. Round the hours required for production to the nearest hour.
4. Prepare the August factory overhead budget. If an amount box does not require an entry, leave it blank. (Entries of zero (0) will be cleared automatically by CNOW.)
5. Prepare the August budgeted income statement, including selling expenses. NOTE: Because you are not required to prepare a cost of goods sold budget, the cost of goods sold calculations will be part of the budgeted income statement.
Based on the August Production Budget, from the information provided, the total units to be produced are:
1, 375 cases. See the attached image for the production budget.
The production budget computes and estimates the number of units of a good that must be produced, and is calculated by summing up:
the sales forecast and the planned amount of finished goods inventory to have on hand.What is Direct Materials Purchases Budget?The amount of material that must be purchased to meet the production budget is determined by a direct materials purchasing budget. This is computed for every manufacturing period, which is often monthly or quarterly.
See the attached image for the direct materials purchasing budget.
What is the Direct Labor budget?To determine how many work hours will be required to create the items listed in the production budget, the direct labor budget is utilized. A more intricate direct labor budget will compute both the overall number of hours required and the breakdown of those hours by labor type.
See the attached image for the direct labor budget.
What is factory overhead budget?With the exception of direct expenditures, which are already covered by the direct material budget and the direct labor budget, the factory overhead budget lists all projected manufacturing expenses required to generate the budgeted output level for a period.
See the attached image for the actual budget.
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Monopolistically competitive firms are unlikely to _______
a. produce where price equals average total cost.
b. produce a smaller quantity than firms in perfect comp
Monopolistically competitive firms are unlikely to:
A. produce where price equals average total cost.
B. charge a higher price than firms in perfect competition.
C. produce a smaller quantity than firms in perfect competition.
D. operate where price equals marginal cost.
E. exit the industry when demand falls below long-run average costs.
The Correct answer is OPTION D.
When several firms provide similar but not identical replacement goods or services, we have monopolistic competition.
An industry with low barriers to entry and little impact from any one company's actions is said to be monopolistically competitive. Companies separate themselves from one another in the market by using price and advertising strategies.
It is called monopolistic competition when multiple businesses sell nearly identical goods. In monopolistic competition, businesses use price and marketing tactics to set themselves apart from rivals. In monopolistic competition, there are few barriers to entry in the form of high start-up costs or other difficulties to new entrants.
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When a firm is producing the quantity where the price is equal to the marginal cost of producing additional goods, the firm can be described as________.
When a firm is producing the quantity where the price is equal to the marginal cost of producing additional goods, it is known as allocative efficiency.
How do you explain marginal cost?
The additional cost to create each additional unit is referred to as marginal cost. For instance, ten cups of coffee might cost $10 to produce. Another would cost $0.80 to produce. As a result, that is the marginal cost, or the extra expense incurred to generate one additional unit of output.
What does the marginal cost formula?
Total Cost of Production minus Total Cost of Production of a Standard Unit equals Change in Total Cost. Change in Quantity is calculated as Total Quantity Product minus Total Quantity Product of Additional Unit.
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Marketers can control the external environment in which their organizations operate. What causes water heaters to build pressure?.
It is False that Marketers can control the external environment in which their organizations operate. They actually cannot control the external environment in which their organizations operate.
Why Marketers can control the external environment in which their organizations operate?Marketers may be able to affect the external environment and control the marketing mix, but they have little control over the overall environment in which their firms operate.
What causes water heaters to build pressure?The valve opens and releases the water that is generating the increase in pressure when the temperature or pressure of the water heater becomes too high.
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Phil greb has a thriving practice in which he assists attorneys in preparing litigation dealing with accounting and auditing matters. he is ""practicing public accounting"" if he:____.
Phil greb has a thriving practice in which he assists attorneys in preparing litigation dealing with accounting and auditing matters. he is ""practicing public accounting"" if he uses his CPA designation on his letterhead and business card.
Accounting, also called bookkeeping, is the measurement, processing, and transmission of financial and non-financial information about economic entities such as businesses and enterprises.
1: A system for recording and summarizing business and financial transactions and analyzing, verifying and reporting the results: The principles and procedures of this system I learned accounting as a freshman.
2a: accounting or accountant work.
Definition of Accounting is the process of systematically recording and maintaining financial accounts. Creating an income statement is an example of accounting. noun.
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In the typical agency relationship between sellers and brokers, brokers are the ________ of sellers, and must protect their clients’ best interest at all times.
In the typical agency relationship between sellers and brokers, brokers are the Fiduciary of sellers, and must protect their client's best interest at all times.
An agent is one who represents the principal, or client, in a transaction, has a fiduciary responsibility to the principal, and acts on behalf of the principal.
The fiduciary duty of the agent to the client is to represent the client to the greatest extent possible within the confines of the law. A customer is the other party to the transaction who is not represented by the agent. Although the agent owes no fiduciary duty to a customer, the seller's agent must, nonetheless, disclose important information about the property and be honest to the customer.
A customer can, and often will, have their own agent. For instance, in a real estate transaction where both the buyer and the seller are represented by agents, the buyer is a customer of the seller and the seller is a customer of the buyer. The seller's agent owes no fiduciary duty to the buyer and the buyer's agent owes no fiduciary duty to the seller.
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Do you think outsourcing would promote or hinder a healthy american economy? Explain with details from the lesson?
Although Americans are frequently blamed for the negative effects of outsourcing... The final line is that outsourcing lowers business expenses, boosts stockholder profits, and drives down consumer prices, raising living standards and creating more jobs overall.
What barriers to trade would prevent an American company outsourcing to one of those countries?
Tariffs are one type of trade restriction that might stop American businesses from offshoring. They have existed ever since the founding of our country. When foreign goods compete with American products for a lower price, tariffs are used.
What are some of the effects of outsourcing on the United States?
Outsourcing primarily has a negative impact on employment in the US. The primary negative impact of outsourcing, according to outsourcing insight, is that it raises US unemployment. Nearly two times as many jobs as there are unemployed Americans—7.5 million—are among the fourteen million that have been outsourced.
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Which organization would most likely mount a vigorous campaign to oppose a reduction in the staffing levels of the texas rehabilitation commission?
Texas Public Employees Association would most likely mount a vigorous campaign to oppose a reduction in the staffing levels of the texas rehabilitation commission.
An employee is someone who is employed by an enterprise and is paid for the work they do. Employees are categorized as individuals who are mentored by other professionals within the company. Employers have some control over their actions, finances, and performance.
They are the people who contribute effectively to the well-functioning of the organization. They do their best and work hard to achieve their assigned goals within the set time frame. Employees play a key role in determining workplace culture.
The fact that someone is being paid to work for a company or organization: Employment levels are unlikely to increase significantly by the end of next year.
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When the exchange rate for the british pound changes from $1.80 per pound to $1.60 per pound, then, holding everything else constant, the pound has __
When the exchange rate for the British pound changes from $1.80 per pound to $1.60 per pound, then, holding everything else constant, the pound has depreciated American wheat sold in Britain becomes more expensive.
How Does an Exchange Rate Work?An exchange rate determines the price at which one currency will be exchanged for another and has an impact on international trade and money transfers. Both the value of the home currency and the value of the foreign currency have an impact on exchange rates. The U.S. dollar to the euro exchange rate in July 2022 was 1.02, meaning it costs $1.02 to buy one euro.
What Impact Do Exchange Rates Have on Supply and Demand for Goods?
Changes in exchange rates have an impact on businesses by altering the cost of commodities imported from other nations and the demand for their goods from international clients.
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When banks borrow through the term auction facility, the price of borrowing is determined by:_________
When banks borrow through the Term Auction Facility, the price of borrowing is determined by : a Competitive Bidding Process.
What Is the Term Auction Facility?
The Term Auction Facility (TAF) was a monetary policy used by the Federal Reserve to increase liquidity in the U.S. credit markets. The TAF began following the financial crisis of 2007.
It allowed the Federal Reserve to auction set amounts of collateral-backed short-term loans to depository institutions (savings banks, commercial banks, savings and loan associations, credit unions) that were judged to be in sound financial condition by their local reserve banks. The Facility relieved the pressure on lending institutions during a period of financial distress.
The TAF was implemented with the express purpose of addressing "elevated pressures in short-term funding markets," according to a press release from the Federal Reserve System Board of Governors in 2007.
Participants bid for TAF funds through the reserve banks with a minimum bid set at an overnight indexed swap rate related to the maturity of the loans. These auctions allowed financial institutions to borrow funds at a rate that was below the discount rate.
Therefore, we can conclude that the correct option is B.
Your question is incomplete, but most probably your full question was:
When banks borrow through the Term Auction Facility, the price of borrowing is determined by:
A) the Federal Reserve.
B) a competitive bidding process.
C) the difference between the discount rate and the interest rate on three-month Treasury securities.
D) open-market operations.
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If the exchange rate rises, then the quantity of dollars demanded ________ because with the higher u. S. Exchange rate, u. S. Exports ________.
If the exchange rate rises, the quantity of dollars required decreases along the demand curve for dollars.
Demand curve for dollarsThe demand curve for dollars illustrates the relationship between the amount of dollars and the exchange rate between pesos and dollars. It descends downward because Mexicans demand more dollars as the price descents. A fall in price signifies that the dollar is devaluating in value relative to the peso.
The demand curve for the foreign exchange is shown in where the pace of foreign exchange and the quantity of foreign exchange required have been shown on the Y axis and X axis respectively.
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Cory is responding to the writing prompt below. examine a department of education advertising campaign that promotes literacy. analyze the campaign to discover the target audience and the advertising techniques used. then evaluate the effectiveness of these advertising techniques. write a formal essay in which you explain how the advertising campaign effectively promotes literacy to a range of audiences. which is the best main topic for his response essay? a summary of the goals of the department of education a description of the advertising campaign’s target audience an analysis of the impact of the advertising campaign an argument for why literacy is important
Which is the best main topic for his response essay?
An analysis of the impact of the advertising campaign an argument
What is an analysis?
An analysis is a detailed explanation of the elements of something. It is a process of breaking ideas into smaller parts for the purpose of understanding it better.
With the question, and information gathered, one can conclude that the objective of the essay the student is asked to do is to:
Analyze the literacy campaign of the Department of Education through an analysis of the advertising technique of the target audience for the campaign which promotes literacy.
Advertising campaign :
An advertising campaign is a specifically designed strategy that is carried out across different mediums in order to achieve desired results such as increased brand awareness, increased sales, and improved communication within a specific market. All of this is accomplished through advertising.
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Answer:
c
Explanation:
Negotiating strategies, mentoring, and coaching are all part of the ________ that one adds to the company.
Negotiating strategies, mentoring, and coaching is all part of the human capital that one adds to the company.
Human capital includes the information, talents, and health that people invest in and accumulate for the duration of their lives, permitting them to understand their capacity as efficient members of society.
Human capital is an asset that includes the knowledge and abilities held by way of someone that may be used by a corporation to advance its desires. Human capital is important due to the fact some degree of human understanding and competencies is vital in order for a corporation to accomplish something.
Coaching is a form of improvement in which an experienced man or woman, known as a coach, supports a learner or consumer in reaching a specific personal or expert intention through providing schooling and steering. The learner is once in a while known as a coachee.
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One of the major reasons for the decrease in the need for agricultural workers was?
One of the major reasons for the decrease in the need for agricultural workers was due to insufficient public investment for agrarian development.
There were many other reasons for the decrease in the need for agricultural workers which are landlessness, population pressure, environmental constraints, and technological changes in agriculture.
It is seen that worldwide, the percentage of people who work in agriculture has dropped as many people don't want to work on farms anymore. With heavy debts to pay and agricultural land being lost for other purposes, it became difficult for the agricultural workers.
Hence, these were the reasons for the decrease in the need for agricultural workers.
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When a business is managed and owned by a group of individuals sharing in making the decisions and taking the risks, the business entity is considered to be:__.
When a business is managed and owned by a group of individuals sharing in making the decisions and taking the risks, the business entity is considered to be a Partnership.
What is Partnership?A partnership is an agreement in which two or more people, known as business partners, agree to work together to further their shared interests. Individuals, businesses, interest-based organisations, schools, governments, or combinations can form partnerships.
A partnership is a single business owned by two or more people. Each partner contributes to every facet of the firm, whether it's money, property, work, or expertise. In exchange, each partner shares in the company's gains and losses.
The goal of a partnership agreement (or partnership contract) is to create a legally enforceable contract between two or more individuals or other legal entities in order to establish a business entity. This partnership agreement specifies each partner's or entity's rights and duties.
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When making good decisions, you must _____ before you select the best alternative.
When making good decisions, you must define the problem and explore alternatives before you select the best alternative.
Things to remember while making good decisions:They must make a decision between these two contestants. The act or process of determining; determination, as of an issue or doubt, by making a judgment: the act or need of making a decision.Things to remember while making good decisions:
Define the problem and explore alternatives.Don't let stress get the best of you.Allow yourself some time (if possible).Consider the advantages and disadvantages.Consider your objectives and values.Consider all of your options.Discuss it.Keep a journal.Plan how you will inform others.Reconsider your options.Therefore, when making good decisions, you must define the problem and explore alternatives before you select the best alternative.
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Debt management ratios show the extent to which a firm's managers are attempting to magnify returns on owners' capital through the use of financial leverage.
a. true
b. false
Debt control ratios show the volume to which a firm's managers try to exaggerate returns on owners' capital via using monetary leverage. A) True
The debt control ratio measures how tons of a organization's operations comes from debt rather than other sorts of financing, along with inventory or private savings. The debt management ratio is one degree amongst lots of a agency's risk and likelihood of default.
Underneath are five of the maximum typically used leverage ratios:
Debt-to-property Ratio = total Debt / overall assets.Debt-to-fairness Ratio = total Debt / overall equity.Debt-to-Capital Ratio = these days Debt / (general Debt + total equity)Debt-to-EBITDA Ratio = overall Debt / income before interest Taxes Depreciation & Amortization (EBITDA)A organization's debt ratio may be calculated with the aid of dividing total debt by using overall property. A debt ratio of extra than 1.0 or a hundred% approach a organization has more debt than belongings whilst a debt ratio of much less than a hundred% shows that a agency has extra property than debt.
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When applying the rules of the equity method, the equity investments account is credited for the receipt of a cash dividend because?
When applying the rules of the equity method, the equity investments account is credited for the receipt of a cash dividend because the dividend decreases the Investor’s Investment Conclusion.
A business uses the equity method as an accounting approach to record the earnings made by its investment in another business. The investor firm declares the revenue generated by the other company on its income statement using the equity method of accounting, in a proportional amount to the equity stake it has in the other company.
The equity technique recognizes the significant economic connection between the two businesses. On the income statement, the investor denotes their portion of the investee's profits as revenue from investments.
Using the equity method, a company that owns 25% of a company with a $1 million net income would report profits from its $250,000 investment.
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The short-run aggregate supply curve is more useful than the curves for other time horizons because real-world economies ______.
The short-run aggregate supply curve is more useful than the curves for other time horizons because real-world economies must change price levels before they change output levels.
Option D. must change price levels before they change output levels.
This is because capital, including assets such as buildings and machinery, takes time to turn over. Wages are assumed to be constant in the short run, so an increase in labor leads only to an increase in quantity, not an increase in price. Therefore, the SRAS curve is almost horizontal at this stage.
The short-run aggregate supply curve (SRAS) gives us an idea of how all firms in the economy react to price stability. When prices stagnate, the SRAS curve slopes. The SRAS curve shows that the higher the price level, the higher the output.
The short-run aggregate supply curve is more useful than the curves for other time horizons because real-world economies ______.
Multiple choice question.
typically change price levels and output levels simultaneously
seldom change output levels or price levels
must change output levels before they change price levels
must change price levels before they change output levels
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Which cost flow method is used most frequently?
a. specific identification
b. fifo
c. lifo
d. weighted average
The FIFO cost flow method is used most frequently. In its most basic form, FIFO (first-in, first-out) costing allows you to track the cost of an item/SKU based on its cost at the purchase order receipt and apply this cost to each shipment of the item until the receipt quantity is depleted.
According to FIFO, manufacturing expenses are based on the assumption that now the oldest products in such an organization's inventory have just been sold first. The LIFO technique substitutes such expenses with the premise that the most recent products in an organization's inventory had also been sold first.
Therefore, the correct answer will be option (b)
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Cindy's car wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). the firm's total cost is:_______
a. $300.
b. $500.
c. $100.
d. $200
The correct option is b. the firm's total cost $500.
Total cost:
Total fixed costs are the total of all recurring, fixed costs that a business incurs.
The variable and fixed expenses of providing commodities are combined to create a total using the total cost formula. The equation is:
Total cost = (Average fixed cost x average variable cost) × Number of units produced.
Cindy's Car Wash has average variable costs of $[tex]2[/tex] and average fixed costs of [tex]$3[/tex] when it produces [tex]100[/tex] units of output (car washes).
The firm's total cost is
AFC = $[tex]3[/tex], AVC = $[tex]2[/tex]
Average total cost = AFC + AVC = $[tex]5[/tex]
It produces [tex]100[/tex] units
$[tex]5[/tex] × [tex]100[/tex]= $[tex]500[/tex]
Therefore, option b is the answer $[tex]500[/tex].
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An hr manager can demonstrate competency in communication by excelling at which behavior?
An HR manager can demonstrate competency in communication by excelling at listening effectively.
A crucial link between management and the workforce of employees is the human resources manager.
A competent HR professional is able to handle challenging circumstances and advise managers on issues involving staff members.
The Bureau of Labor Statistics, oversees the recruitment, interviewing, selection, and hiring procedures within a business (BLS).
Some executives who work in human resources manage all of the department's operations, establishing salary and benefits programs as well as driving training and development.
People that flourish in human resources positions also have top-notch soft skills, such as the capacity to listen and show empathy to employees who may be challenging to manage, in addition to excellent analytical abilities, management ability, and coordination of programs.
Hence, listening effectively is the correct option.
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The fastest and easiest way for a firm to diversity its portfolio of businesses is through acquisition because:____.
The fastest and easiest way for a firm to diversify its portfolio of businesses is through acquisition because of option A. Unrelated acquisitions are usually uncomplicated because the acquired firm is allowed to continue to function independently as it did before the diversification acquisition.
Diversify acquisition is a corporate movement wherein a company takes a controlling interest in some other organization to expand its product and service offerings. One manner to determine if a takeover comes under diversification acquisition is to have a look at the two organizations' fashionable industrial classification (SIC) codes.
You can diversify into related fields with the aid of buying up competitors or suppliers, increasing company synergy and your typical market proportion. As a substitute, you may flow into unrelated industries, which cushions you in case your present-day center market all of sudden weakens.
Your question is incomplete. Please read below for the missing content.
The fastest and easiest way for a firm to diversify its portfolio of businesses is through acquisition because:
A) unrelated acquisitions are usually uncomplicated because the acquired firm is allowed to continue to function independently as it did before the acquisition.
B) of barriers to entry in many industries.
C) innovation in both the acquired and the acquiring firm is enhanced by the exchange of competencies resulting from the acquisition.
D) it is difficult and time intensive for companies to develop products that differ from their current product line.
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A manager's operation had sales this period of $89,775. last period sales were $85,500. what was the manager's percentage sales increase for this period when compared to last period?
A manager's operation had sales this period of $89,775. last period sales were $85,500. So the manager's percentage sales increase for this period when compared to last period was 5% .
The percentage increase is the measure of the percentage change. The percentage increase is defined as the ratio of increased value to the original value and then multiplied by 100. Here the increased value can be calculated by taking the difference between the final value and the initial value. The formula to calculate increase is given by -
Percentage Increase = [(Final value – Original value) × 100] / Original value %
In this case, original value is $85500 and the final value is $89775, then the percentage increase is:
Percentage Increase = [(89775-85500) ×100]/85500
= 427500/85500
= 5%
So, the percentage increase will be 5% .
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Investors react positively to an increase in a firm's level of debt because they expect the?
Investors react positively to an increase in a firm's level of debt because they expect the "Value of the firm to increase firm to generate tax savings."
This is because Debt is often cheaper than equity, and interest payments are tax-deductible. So, as the level of debt increases, returns to equity owners also increase — enhancing the company's value. If risk weren't a factor, then the more debt a business has, the greater its value would be
How does increase in debt affect share price?Risk increases, in part, because the debt could make it harder for the company to pay its obligation to bondholders. Therefore, under a typical scenario, stock prices will be less affected than bonds when a company borrows money.To learn more about increase in debt, click the links
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