Answer:
b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.
Explanation:
A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.
In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).
Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.
Agricultural marketing covers the activity of getting the an agricultural product from the fom to consumers
Answer:
security policy is the correct answer.
Explanation:
Answer:
65% of the portfolio is invested in stock.
Explanation:
The weight of stock is assumed to be x.
Then, the Weight of Risk-Free Stock will be 1 - x.
Beta of Portfolio =
0.76 = 1.17 x
x = 0.76 / 1.17
x =0.64957
x = 64.957%
So, 65% of the portfolio is invested in stock.
Answer:
year 2016 $ 68,400
year 2017 $ 99,488
year 2018 $ 97,076
year 2019 $ 109,704
year 2020 $ 95,602
Explanation:
2016: year-base the nominal is the same as the ending
2017:
122,744 x 100/134 = 91,600
second layer:
91,600 - 68,400 = 23,200
ending inventory
base layer 68,400
23,200 x 134/100 = 31,088
total 99,488
2018:
132,904 /1.48 = 89,800
89,800 - 68,400 = 21.400
21,400 x 1.34 = 28,676
68,400 + 28,676 = 97,076
2019:
150,920 / 1.54 = 98,000
98,000 - 68,400 = 29,600
29,600 - 21,400 = 8,200
<u>Layers</u>
68,400 x 100/100 = 68,400
21,400 x 134/100 = 28,676
8,200 x 154/100 =<u> 12,628</u>
Ending Inv 109,704
2020:
141,920 / 1.60 = 88,700
88,700 - 68,400 = 20,300
<u>Layers:</u>
68,400 x 100/100 = 68,400
20,300 x 134/100 = <u> 27,202 </u>
Ending Inventory 95,602