Assume that the risk-free interest rate in the United States is the same as that in Country M. Assume that the government of Country M is more likely to rescue local firms that experience financial problems. Other things being equal, Country M's firms are likely to use a ____ degree of financial leverage than U.S. firms. If a firm based in Country M has the same degree of financial leverage and the same operating characteristics as a U.S. firm, its cost of capital will likely be ____ than that of the U.S. firm.

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Answer 1

Country M's firms are likely to use a higher degree of financial leverage than U.S. firms. The cost of capital will likely be lower than that of the U.S. firm.

What is financial leverage?

Financial leverage is known to be the use of borrowed money  that is a debt to handle or finance the buying of assets with the view that the income or capital gain or profit from the new asset will be more than the cost of borrowing.

Note that  Country M's firms are likely to use a higher degree of financial leverage than U.S. firms. The cost of capital will likely be lower than that of the U.S. firm.

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Related Questions

Your company is launching several new video game modules, with a separate display ad for each console. Management wants to make sure the ad leading to the most purchases shows more often than the ads not performing as well. To achieve this goal, which type of display creative optimization would you use

Answers

Optimize for conversions is a type of display creative optimization.

What is video in-game advertisement?

Whether it's on social media or in video games, video is a crucial format for digital advertising. What users want to experience now is excellent for a dynamic, captivating video.

An object called an ad creative is made up of all the information needed to graphically generate the actual ad. The goal of conversion optimization is to increase the proportion of visitors who take the desired action on a website.

Hence, the significance of the video game is aforementioned.

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When you market medicare advantage and part d plans, what may you offer as a gift to induce enrollment in a plan?.

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When the insurance agents sold the Medicare plans under part D  then in order to induce the enrollees they can provide them with gifts worth not more than $15 in value.

What is a Medicare plan?

A Medicare plan is an insurance plan provided to US citizens in the healthcare sector by private insurance firms.

Under part D of the Medicare plan, the insurance agents cannot be allowed to provide prizes or gifts having a value of greater than $15, are not permitted to pay for any kind of meals, and also not allowed to give any gift card or any kind of money to the enrollees.

Therefore, the insurance agents can induce the persons to get enrolled in the Medicare plan by giving them gifts of not higher than $15.

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according to the menu cost theory, firms will be slow in changing their prices because:

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According to the menu cost the firms would be slow to changing prices because .the cost of changing the price might exceed the additional profit the price change would generate.

What is the menu cost theory?

This is the theory in the field of economics that helps to ensure the reflection of the effect of the change in price to an establishment.

According to this theory, the the cost of changing the price might exceed the additional profit the price change would generate.

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explain how automation impacts network management

Answers

The automation can impact network management by:

By establishing  perfect network view.Easy access to network data

How can automation can impact network management?

By using automation programs, it make network management to be easy and direct because it improve the control that one has on the network.

With automation, it will be easier to  access network data as well the  performance reports.

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Many employers give employees a process and procedure through which to communicate unfair treatment. This process and procedure is known as a(n) ________ procedure.

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When any employers give employees a process and procedure through which to communicate unfair treatment. This process and procedure is known as "grievance review" procedure.

What is grievance review?

Employees may address issues relating to their employment through the Grievance Procedure, a four-step management review process, in accordance with the steps outlined in this Standard Practice Guide.

Step 1: To discuss the matter amiably with the employer.Step 2: Complain about the situation in writing.Step 3: This involves a grievance investigation.Step 4: To analyse the facts and make a conclusion, a grievance hearing might be necessary.

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Two common measures of the overall level of prices are.

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Two further indicators of the general level of prices are the GDP deflator and the consumer price index.

What do you mean by price level?

The price level is determined by averaging the current prices for all the goods and services produced in an economy. Price level refers to the cost or price of a good, service, or security in the market.

Price level indicators track changes over time and indicate the overall level of pricing for goods and services in an economy.

The Consumer Price Index (CPI), The GDP deflator, and Producer Price Index

is the three main price level indicators that economists and policymakers frequently cite (PPI).

Therefore, the aforementioned are some of the usual indicators of price level changes.

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Ace Company sells merchandise to a customer in the amount of $200 on credit, terms n/30. The entry to record this sale would include a debit to the ____________ account:

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The journal entry to record the given sale of $200 on credit would include a debit to the bill receivables account.

What is a journal entry?

A systematic and chronological record of financial transactions that take place in a business organization during a given period is known as a journal entry.

Hence, the significance of journal entry is given.

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A financial statement that has a date line similar to "For the month ended June 30, 20XX," is a(n):

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A financial statement that has a date line similar to "For the month ended June 30, 20XX," is an income statement.

What is income statement?

An income statement is what measures the profits and losses over a specific period for a company. It is used for reporting the financial performance over an accounting period.  

Hence, a financial statement that has a date line similar to "For the month ended June 30, 20XX," is an income statement.

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answer it please ^_^​

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Answer:

after independence the government device specific rules to public and private sectors basic the strategic industries where the government and their public sector and the consumer goods industries were left to be diplomate and the private sector there were member of change in industry policy from the time to time

Explanation:

Evolution of business activities

As the new technology invented it has also an application in business . before there was no thing as e bussiness or e commerce. but not almost every person heard it somewhere. business owners tried to move their business to online to get benefits from it and it helps them to grow their business to a very extent as it provides them with lots of costumer.

so marketing is now done by customer itself.

If electro corporation sells a $20 million stock issue to an investment banking firm such as merrill lynch, this transaction takes place in:

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The transaction of Electro Corp. selling their stock to an investment banking firm means that this happened in the Primary market.

What happens in the primary market?

This is the market where a company issues its stock to the market. They can issue it directly, but they usually go through an investment banking firm.

This investment banking firm would buy the stock at a lower price and then sell it to the market at a higher price.

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the table below reports quarterly gdp and real gdp data for the united states during the great recession, which lasted from the end of 2007 to mid-2009.

Answers

The above exercise has to do with GDP Analysis. It contains a comparison between Real GDP and nominal GDP.

What is real GDP?

Real GDP refers to a version of GDP (Gross Domestic Product) that has been adjusted for the effects of price inflation.

Thus:

From 2007 Q4 through 209 Q2, the real GDP grew by - 3.98%. This was a negative growth.

This was computed by the following formula:
% Increase = (Amount representing increase/ Original Figure) x 100

That is :   ((15,134.10 -15762.00)/15,762.00)*100

= -3.98363151884

≈-3.98

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Economists convert costs and benefits into money equivalents by evaluating an individual's willingness to pay. opportunity costs. marginal benefits. sunk costs.

Answers

The correct option is (a) willingness to pay.

Comparing the anticipated or predicted costs and benefits (or opportunities) connected with a project choice in order to assess whether it makes sense from a business standpoint is known as a cost-benefit analysis.The maximum sum of money a consumer will spend on an additional commodity or service is known as the marginal benefit. As spending rises, customer contentment tends to decline. The difference in price caused by producing an extra unit of a good or service is known as the marginal cost.

What is economic benefit?

Economic benefits are defined as concrete advantages that can be quantified in terms of money saved or income earned as a result of the application of policies.

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In response to the need to reinforce the brand promise, ________ is about mixing and matching marketing activities to maximize their individual and collective effects.

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In response to the need to reinforce the brand promise, "integrated marketing" is about mixing and matching marketing activities to maximise their individual and collective effects.

What is integrated marketing?

By using integrated marketing communications, a business may make sure that all of the advertising tactics it uses are transparent, consistent, and directed at the same objectives.

The elements of integrated marketing is strategy. An integrated strategy is the foundation for everything, including

marketing, websites, creative, social media, public relations, SEO, paid social media, paid media.

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Identify a type of market failure. Provide an example of that type of market failure and briefly explain one way that the government could help to reduce the negative effect of that market failure.​

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Monopoly power, inefficiency, absent markets, and other factors can all result in market failure. Government is help to reduce the negative effect of that market failure such as implemented taxes and laws. An example of a market failure is music application.

What is market failure?

When we talk about "market failure," we're talking about an economy where there is an inefficient flow of commodities and services on the open market.

Inefficiency, absent markets, insufficient markets, and negative externalities are the main forms of monopoly power. audio player: All listeners hear the song, yet it cannot affect them directly. It is unable to determine whether or not a user has paid.

The government must address market failure issues brought on by additional regulations, taxes, tariffs, subsidies, and trade restrictions.

As a result, monopoly power, inefficiency and missing markets types of market failure. Government implemented taxes and laws. Ex of music app.

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what is the cap rate if a building sells for $2,000,000 with an noi of $150,000?

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The cap rate if a building sells for $2,000,000 with an noi of $150,000 is 7.5%

What is cap rate?

This is the ratio of the net operating income (NOI) of a business to its current market value. Mathematically;

cap rate = NOI/market rate

Given the following

NOI = $150,000

Market value = $2,000,000

Substitute

cap rate = 150,000/2,000,000
cap rate = 0.075 = 7.5%

Hence the cap rate if a building sells for $2,000,000 with an noi of $150,000 is 7.5%

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The neighbors in South Mountain Village got tired of all the drug dealing and criminal activity surrounding a shop, the Mystery Market. The community boycotted the store, which eventually closed, and with the help of local financial institutions, a social services center was added to the area. What act is this an example of

Answers

The action that the community embarked on in closing the store is called the Community Reinvestment Act.

What is a Community Reinvestment Act?

This refers to a situation where the community at large comes together to rid their society of social ills and try to make it more productive.

The people of South Mountain Village succeeded in closing the Mystery Market and then added a social services center to make the community better off.

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In order to gather additional in-depth information needed for business decisions, marketers must do their own research by gathering:

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In order to gather additional in-depth information needed for business decisions, marketers must do their own research by gathering: primary data.

What is primary data?

This is the data that researchers have to gather by themselves by going into the field.

Primary data is the type of data that can be gotten from direct surveys, questionnaires and other forms of data collection.

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The scenarios each illustrate a principle of economics. classify each scenario according to the principle that best fits it. you are currently in a labeling module. turn off browse mode or quick nav, tab to items, space or enter to pick up, tab to move, space or enter to drop. on black friday, there are huge sales for electronics at many retail stores. david must decide between buying a camera at one store or a flat screen tv at another store, and buying one means losing out on the ability to purchase the other. an educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. the company compares how much adding another worker will improve the product to the additional cost. ava finds that there is not enough time after work to have dinner, exercise, and watch tv, and she must make choices about how to use her limited time.

Answers

David's decision on the electronics to purchase represents opportunity cost.

The decision to hire another economist is marginal analysis.

Ana's decision on how to use her time involves opportunity cost.

What is opportunity cost?

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives. When an economic agent chooses one option, he would not be able to choose another option.

What is marginal analysis?

Marginal analysis involves comparing the marginal cost or / and the marginal benefit of a decision.

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The car-related website and media company, Edmunds, provides reviews and ratings of vehicles and is well respected by individuals in the car industry as a neutral source. Consumers appreciate its advice and information and know they can trust Edmunds for non-biased information. In addition to its own website and magazine, Edmunds is using the ________ Pinterest to post photos and links to recent articles as well as answer questions posed by members of Pinterest.

Answers

In addition to its own website and magazine, Edmunds used the "​bulletin-board site" Pinterest to post photos and links to recent articles as well as answer questions posed by members of Pinterest.

What is bulletin-board site?

Such a website provides a forum for some users to discuss particular subjects. Some talks are only open to a certain group of people, while others are open to everyone.

Some features of bulletin-board site are

A bulletin board, also known as a pinboard, noticeboard, or notice board in British English. It is a surface designed for the posting of public messages, such as those announcing events, offering information, or announcing objects that are sought or for sale.

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A man purchased a new power boat with an inboard engine from a boating supply store. The boating supply store properly inspected the boat before delivery, but did not detect a virtually invisible manufacturing defect in the boat's steering mechanism. Later that summer, the man was entertaining some friends on his boat on a lake near a dam. There were some warning pylons near the dam, warning boaters to stay clear. The man decided to show off for his friends by weaving his boat in and out of the warning pylons. As he rounded the last of them, the steering mechanism of his boat jammed, and the boat crashed into the dam. The man was severely injured. The man brings an action for damages against the boating supply store on a theory of strict liability in tort in a jurisdiction that does not apply its comparative fault rules to strict liability actions. Who will prevail

Answers

In this scenario with the boat the person that would prevail is the man that bought the boat.

The reason why the man would prevail

This is due to the fact that the people that sold him the boat should have made sure that they were not selling a defective item.

The accident was not the fault of the man. The defect should have been well detected and dealt with before the sale of the boat.

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A form of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar product or service is a: Group of answer choices licensor. joint venture. foreign subsidiary. host company.

Answers

A form of foreign direct investment, where a domestic company purchases a company in a foreign country is a foreign subsidiary.

What is Foreign subsidiary?

This is a business enterprise which involves a company owning to some degree another in another country.

This type of subsidiary involves the both of them producing the same type of goods and service.

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Financially successful people focus on
the short-term.

True or false?

Answers

false !
they focus on long term

A decrease in the quantity supplied of iPads is caused by a(n) increase in TV advertising for iPads. increase in the number of iPad consumers. technological advancement in iPad production. drop in the price of iPads.

Answers

The correct option is D). drop in the price of iPads.

What happens to supply when prices drop?

An increase in price leads to an increase in the quantity supplied of that good or service, while a decrease in price will decrease the quantity supplied.

The supply curve will move from left to the right, as the price of the commodity increases and the quantity supplied also increases.

Therefore, a decrease in the quantity supplied of iPads is caused by drop in the price of iPads.

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Judy's Boutique just paid an annual dividend of $2.35 on its common stock. The firm increases its dividend by 3.15 percent annually. What is the company's cost of equity if the current stock price is $38.44 per share

Answers

The company's cost of equity is 9.45%

Given that

Annual dividend paid, D0 = $2.35

Dividend growth rate, g = 3.15% = 0.0315

Current stock price per share = $38.44

Now,

Current price of share = D1 ÷ (r - g) -(1)

Here,

r is the required rate of return

D1 = dividend at year 1 =  D0 × (1 + g)

= $2.35 × (1 + 0.0315)

= $2.424045

Therefore, from (1) we get

$38.44 = $2.424045 ÷ (r - 0.022)

(r - 0.0315) = 0.063060

r = 0.063060 + 0.0315

r = 0.09456

r = 0.0945 × 100% = 9.45%

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What does copyright law protect?

Answers

Answer:

Copyright, a form of intellectual property law, protects original works of authorship including literary, dramatic, musical, and artistic works, such as poetry, novels, movies, songs, computer software, and architecture.

24. Megan plans the facility layout of her new shop that would sell a variety of healthcare industry machines. She arranges the machines in a way that the machines are grouped according to their functions. Which of the following types of facility layouts has Megan used in her shop? a. A process layout b. A product layout c. A cellular layout d. A fixed-position layout ANSWER: a

Answers

Based on the fact that Megan arranged the machines according to their functions, this is A. Process layout.

What is a process layout?

This is a way of arranging a shop or factory where machines and equipment are arranged according to their function.

Megan arranged her machines according to how they function so that she can be able to move from one station to another. This is therefore a process layout.

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Mr. Kitten purchased an annuity contract for $50,000 from the XYZ Company on March 31, 2022. He is to receive $1,000 per month starting April 1, 2022, and continuing for life. He has a life expectancy of 10 years as of March 31, 2022. Mr. Kitten's reportable annuity income for 2022 is:

Answers

Mr. Kitten's reportable annuity income for 2022 is:$5,250.

Annuity income

First step

Expected return= 120 months × $1,000

Expected return=$120,000

Second step

Exclusion ratio=($50,000/$120,000)

Exclusion ratio=41.67%


Third step

(April 1-December 31= 9 months)

Annuity income=(9 months×$1,000) -[(9 months×$1,000)×41.67% ]

Annuity income=$9,000-($9,000×41.67%)

Annuity income=$9,000$3,750

Annuity income=$5,250

Therefore Mr. Kitten's reportable annuity income for 2022 is:$5,250.

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which of the following items are initially recorded as an expense on the income statement?

Answers

The items that are initially recorded as an expense on the income statement are:

a. Research and development costsb. Advertising costs

What is an Income Statement?

This refers to financial information that stores all the inflows and income that occurred over a period of time.

Hence, we can see that from the complete text, there are lists of items and the Research and development costs and Advertising costs are initially included as expenses in the income statement.

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With no trade, the equilibrium price of grapes is $2 per pound in Macroland and $4 per pound in Econoland. Government leaders in Macroland are negotiating a free trade agreement with Econoland to increase trade between the two countries. Who among consumers and producers is likely to support and who is likely to oppose the free trade agreement

Answers

Those in Macroland and Econoland who would support or oppose the free trade agreement are:

Consumers in Econoland -  Support. Producers in Econoland - Oppose. Consumers in Macroland - Oppose. Producers in Macroland - Support.

Who would support the free tade agreement?

Consumers in Econoland would support the agreement because they would get cheaper grapes. Producers in the nation would lose market share as a result so they would oppose it.

Producers in Macroland would love to sell more grapes to another market so they would support. Consumers in the nation would oppose because grape prices might go up.

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When a profit-maximizing firm in a competitive market has zero economic profit, accounting profit Group of answer choices is negative. is at least zero. is also zero. could be positive, negative or zero

Answers

Selling the same good to various consumers at different prices is the only option when a profit-maximizing corporation in a competitive market has zero economic profit or accounting profit.

What is a profit-maximizing firm?

Operating where marginal revenue and marginal expense are equal maximizes profit for a business. According to neoclassical theory, which assumes that the price must match the marginal cost condition, a firm must maximize profit in order to decide on an output and input level.

Profits and losses are ultimately eliminated because an endless number of businesses produce uniform, infinitely divisible items.

The appropriate response is thus that there are no choices because everything is produced and sold at the same price.

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