the increase in risk to shareholders when financial leverage is added is best evidenced by: a) higher eps as ebit increases. b) a higher variability of eps with partial debt financing than with all-equity financing. c) increased use of homemade leverage. d) the increase in taxes. e) decreasing earnings as ebit increases.

Answers

Answer 1

The increase in risk to shareholders when financial leverage is added is best evidenced by a higher variability of eps with partial debt financing than with all-equity financing.

Why does financial hedging put stockholders at more risk?Financial over-leveraging is the practice of taking on excessive debt by taking out loans at cheap interest rates and investing the extra money in high-risk stockholders . The value of a company's equity may decline if the investment's risk exceeds its projected return because investors may perceive it to be overly risky.Financial risk increases when financial leverage increases since there is a large disparity between the coefficient of variation of EPS and EBIT. In order to offset the higher risk brought on by the financial decisions, businesses need often generate more EBIT.

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Related Questions

Describe an example of an equity investment that can also produce income. (1-3 sentences)

Answers

The most prevalent sort of equity income investing is stocks. Companies typically pay dividends to reward shareholders, attract investor money, and boost share prices when they have limited investment alternatives and extra cash.

HURRY I NEED HELP!!!
Does globalization (or global trade) provide an opportunity to the world (positive), or does it take advantage of local individuals and cultures (negative)? Explain in a CREW format.
Interviewer: I am here on a very crowded Wall Street with protesters chanting all around me…
Group of Protesters: People before profits! People before profits! People before profits!
Interviewer: Many of these folks are against the growth of global free trade. They believe free trade is to blame for increases in poverty, income inequality (lots of rich and lots of poor), and environmental damage in recent decades. They claim that the elimination of tariffs and other barriers to trade have simply allowed large, multinational corporations to move into and exploit (take advantage of) developing nations, while hurting many U.S. workers and families, too.
Protester 1 (wearing a “No More Sweatshops” T-shirt): The extreme expansion of capitalism and free trade has allowed large, multinational companies to exploit developing countries, and especially their poorest citizens who are often forced to work for less than $1.00 day. Many of the factories set up by these big companies are sweatshops– dirty, dangerous, and the pay is awful. We are here protesting for a ‘living wage’ for all foreign employees of U.S. corporations.
Union representative: I’m tired of these large, unfeeling corporations sending our good paying manufacturing jobs overseas to some factory where workers make $1.50 an hour, instead of letting Americans have those jobs…That’s what’s happening in the textile industry, the steel industry, and the auto industry, too. These are industries that built America and now our jobs are going to China or Mexico...
Interviewer: The other side of this global debate–you might call them free-trade advocates– argues that opening up markets and international borders to free trade has had all kinds of benefits for developing nations, as well as the United States and other industrialized nations. They cite data showing increased life expectancy, increased literacy (ability to read and write), more political freedom, and a reduction in the proportion of people living on less than $1.00 per day in the developing nations.
Manager: Evidence shows that the number of people living on $1.00 per day or less has decreased by 50% in the last 20 years, which was a period of rapid world economic growth, largely because of international trade. And the percentage of people who are malnourished (Starving) has dropped from 56% in the 1960s to only 10% today. Again, during a period of global economic growth, fueled by trade. Look, our corporation has a factory in Vietnam. Last year our factory there paid 2 times the local wage. That was a big step up for those workers, and it made sense for us, too, because it meant we could get the most productive local workers.
Shopper: Let’s also look at all of the different product choices we have. I can go into the grocery store and find different types of food from all over the world. We are limited in what we can produce and grow here in America, so having global trade gives us so many more options.
C- Claim (Globalization provides an opportunity to people throughout the world [or] Globalization takes advantage of local individuals and cultures around the world.)
R- Reason (It provides the opportunity because… [Or] It takes advantage of others because…)
E- Evidence (insert a quote from the reading to prove your positive or negative side)
W- Warrant (This quote shows how globalization is positive/negative because… We should/shouldn’t continue to trade with other countries of the world because...)

Answers

Answer:

In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers. Globalization is not new.

The growth rate in real GDP per capita was 9.9% between Year 1 and Year 2. Use the chart below to calculate the missing value for Nominal GDP in Year 2. Nominal GDP Population CPI Year 1 12,699,583 520 220.2 Year 2

Answers

It can be deduced that a nominal GDP simply means the gross domestic product that has not been adjusted for inflation.

What is a nominal GDP?

Your information is incomplete. Therefore, an overview will be provided. Nominal GDP is the calculation of GDP that includes current prices.

Nominal GDP is the gross domestic product that has not been adjusted for inflation. It is calculated as:

= (Deflator × Real GDP) / 100

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on what grounds is the Trump administration investigating imposing tariffs on imported automobiles?

Answers

Answer:

The clock has run out on President Donald Trump's "Section 232" tariffs on imports of foreign-made cars and auto parts, after he failed to announce a decision by a self-imposed deadline, trade law experts say.

The U.S. administration may have to find other means if Trump wants to tax European or Japanese car imports, a key part of the U.S. president's pledge to make America's trade relationships more fair, the experts say.

vegetables wilt of soften and their color intensifies as they

Answers

Answer: boil

Explanation:

Answer:

Saute

Explanation:

Vegetables wilt and soften when sauteing for example spinach, bokchoy and kale to name a few.

According to the speaker, what are the three traditional Gs of growth?

Answers

Answer:

Consistent, Competitive & Profitable.

Explanation:

correct on edge

The three traditional Gs of growth are Growth, Gratitude, and Giving

What is tradition?

The standard of a piece of information being discussed is indicated by tradition. For instance, "Homer is said to have been born on the island of Chios, although many other places have historically claimed him as their own." It may never be possible to confirm or deny this custom.

Growth: In other words, if you develop your workforce, your business will do the same. Don't you make an effort to hire employees that are smarter than you Give them an opportunity to succeed while guiding them while they do so.tradition

Gratitude can take many different forms. Your customers conducting business with you, internal promotions, and improving someone. Investing in a better world and receiving assistance in whatever form are both aspects of gratitude.

Giving: is a straightforward conclusion; you give it your all without holding back. Giving is recognizing the need and taking action to provide assistance in any form that is practical. Giving ultimately causes the business world to whirl. If you do it, other people will too. That's how easy it is.

Therefore,  Traditional Gs of growth are Growth, Gratitude, and Giving

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3. What could be done for the ratio(s) that were not favorable to the nursery that you chose? (5 pts)

Answers

The science and practice of nursery management can be improved by choosing the right use of soil, fertilizers, nutrients and supply of clean water.

What is nutrient management?

Nutrient management is the process of matching a particular crop management conditions, field soil, and climate condition to the 4R nutrients.

The 4R nutrients are

RatePlaceSourceTiming

How to improve the unfavourable ratio?

To answer this question, we make use of soil and nutrients management as a ratio to improve the nursery.

It follows that using the right soil in planting a particular type of crops helps to reduce some negative result or unfavourable condition which stands to impede economic growth.

The correct use and adequate supply of fertilizers can help to provide a favourable condition in the nursery.

In nursery production, employing clean water can go a very way to help improve the quality of these nursery lives and management as contaminated water reduces the productivity of the nursery.

In conclusion, we can now confirm that when we introduce the right measures in the nursery practice such as soil and nutrients management, it can help improve the ratios of the nursery.

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Complete question:

What could be done to improve the practice of nursery management that you chose

Which industry is Amazon involved in ?​

Answers

Answer:

Cloud computing e-commerce artificial intelligence consumer electronics digital distribution self-driving cars

Explanation:

Answer:

Cloud computing e-commerce

Explanation:

it is used for artificial intelligence or the use of robots

What are 4 reasons why you should print, save, or make a copy of your job application???

Answers

Answer:

Be Prepared. Make sure you know the correct names, dates, places and other information you will need

A $59,000 loan is taken out on a boat with the terms 12% APR for 36 months. How much are the monthly payments on this loan? A. $2,547.54 B. $2,155.61 C. $2,351.57 D. $1,959.64

Answers

To calculate the monthly payments on the $59,000 loan with 12% APR for 36 months, we can use the formula for calculating the monthly payment on a fixed-rate loan.

First, we need to convert the APR to a monthly interest rate. We divide the APR by 12 to get the monthly interest rate. In this case, the monthly interest rate is 12% divided by 12, which is 1%.

Evaluating the expression, the monthly payment comes out to be approximately $1,959.64. Therefore, the correct answer is D. $1,959.64.

In summary, the monthly payments on this loan are approximately $1,959.64.
(Note: The other options provided in the question are not the correct monthly payments for this loan.)

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The monthly payments on a $59,000 loan with a 12% Annual Percentage Rate (APR) for 36 months can be calculated using the formula for loan payments. The formula is:

Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Months))

To calculate the monthly interest rate, divide the APR by 12 (since there are 12 months in a year) and convert it to a decimal:

Monthly Interest Rate = 12% / 12 = 0.01

Plug in the values into the formula:

Monthly Payment = (59,000 * 0.01) / (1 - (1 + 0.01)^(-36))

Simplify the equation:

Monthly Payment = (590) / (1 - (1.01)^(-36))

Evaluate (1.01)^(-36) = 0.7738404

Plug in the value:

Monthly Payment = (590) / (1 - 0.7738404)

Subtract the value inside the parentheses:

Monthly Payment = (590) / (0.2261596)

Divide:

Monthly Payment = 2,608.82

Therefore, the monthly payments on this loan would be $2,608.82. None of the options provided (A, B, C, or D) match the correct answer. It is possible that there may be a typo or mistake in the given options.

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as output of a firm increases, the difference between the firm’s average total cost and its average variable cost gets smaller because the firm’s

Answers

The economies of scale is often known as a scenario where long run average cost decreases as the firm's output increases. As output of a firm increases, the difference between the firm's average total cost and its average variable cost gets smaller because the firm's

average fixed cost is decreasing.

When there is an increase in output, the average total cost and average variable cost does fall and may not be equal for any level of output.

Therefore, as production reaches the highest level, ATC and AVC will have to be more closer.

Conclusively, In the average cost calculation, the rise in the numerator of total costs is small when related to the rise in the denominator of quantity produced and as output increases, the average cost begins to rise.

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how long does it take to be an immigration lawyer and what’s the average salary?

Answers

A mid-career Immigration Attorney / Lawyer with 5-9 years of experience earns an average total compensation of $81,780 based on 105 salaries. An experienced Immigration Attorney / Lawyer with 10-19 years of experience earns an average total compensation of $93,229 based on 78 salaries.
salary: 50k-150k (depends where)
time: and 10-15 years (also depends where)

Why is it called Chick-Fil-A when a Fil-A (filet) is normally cooked with beef???

Answers

Because most of their food consists of chicken? They barely have any beef on their menu
It is a cleaver marketing strategy. One of Chick-Fil-A’s missions is to encourage people to eat chicken instead of meat, so a funny twist they thought they should include is a name spin. Like you have stated, a Filet is normally a steak, but Chick-Fil-A spiced it up a little bit and changed the context behind it to fit their brand of boneless chicken :)

Which of the following is an advantage of renting over
advantage of renting over buying a home?

Which of the following is an advantage of renting overadvantage of renting over buying a home?

Answers

Answer:

having to make a down payment..

An advantage of renting over buying a home and having to make a down payment. The correct option is D. Financial risks are lower when renting. You are aware of the precise monthly rent payment you will be making.

What is the most significant advantage of renting?

The three biggest advantages of staying a renter, in Ramsey's opinion, are having more flexibility if you decide to move, not having to pay for home maintenance, and not having to spend as much money initially. Additionally, your landlord will handle all necessary repairs, upkeep, and other costs. There is no additional cost.

Renting offers convenience, consistent monthly costs, and maintenance assistance. Along with the concrete advantages of tax deductions and equity, home ownership also offers intangible advantages like a feeling of security and pride in one's possession.

Thus, the ideal selection is option D.

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The institution that manages Inventory for publishers and allows them to access multiple ad exchanges per auction is called o Ad network o Data management platform (DMP) o Demand side platform (DSP) o Supply side platform (SSP)

Answers

The institution that manages inventory for publishers and allows them to access multiple ad exchanges per auction is called a supply side platform (SSP). An SSP is a technology platform that connects publishers with multiple demand sources. Correct answer is supply side platform


An SSP automates the process of selling ad inventory by providing publishers with the tools to manage their inventory, set pricing rules, and access multiple demand sources through a single platform. The SSP also provides real-time reporting and analytics to help publishers understand their performance and optimize their inventory to maximize revenue.


Through an SSP, publishers can reach a larger pool of buyers and increase their revenue by participating in RTB auctions. The SSP acts as a mediator between publishers and demand sources, ensuring that ad inventory is sold at the highest possible price.



Overall, an SSP is an essential tool for publishers looking to monetize their digital content efficiently. By enabling publishers to access multiple demand sources and manage their inventory, an SSP allows them to maximize their revenue while providing advertisers with access to high-quality ad inventory through real-time bidding. Thus Correct answer is supply side platform

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List 20 items in your home that are made of fabrics and fibers plzzzzzzzzzz i need help

Answers

clothing, furniture, blankets, bags, pillow cases, mattresses, sewing fabric, bed skirts, comforters, curtains, drapes, mattress cover, oven mitts, pencil pouches, towels, sheets, pencil pouch, lunch box, hair bands

china has been accused of prohibiting u.s. companies that offer cloud computing from offering their services in china. which argument best explains this? multiple choice china would like to develop a superior technology to cloud computing. chinese firms in the cloud computing industry are more competitive than u.s. companies. china wants to protect its firms from their more competitive u.s. rivals. china is hoping to limit the use of cloud computing in china. chinese firms in cloud computing offer more services than american firms.

Answers

The answer is China wants to protect its firms from U.S. rivals, This argument  best explains of Why China has been accused of prohibiting U.S. companies that offer cloud computing from offering their services in China.

What is a succinct definition of a company?

A company is a type of business organization that exists independently of its owners in law. It is a sophisticated organizational structure with higher setup and administrative costs because to increased reporting requirements.

What separates a firm from a business?

A "company" is another term for a firm. It is a blanket phrase that covers all different types of commercial enterprises. Having said that, enterprises comprise essential elements that, in contrast to firms, aren't thought of as separate legal entities. For instance, a sole proprietorship is not a separate legal entity.

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The answer is China wants to protect its firms from U.S. rivals, This argument  best explains of Why China has been accused of prohibiting U.S. companies that offer cloud computing from offering their services in China.

What is a succinct definition of a company?

A company is a type of business organization that exists independently of its owners in law. It is a sophisticated organizational structure with higher setup and administrative costs because to increased reporting requirements.

What separates a firm from a business?

A "company" is another term for a firm. It is a blanket phrase that covers all different types of commercial enterprises. Having said that, enterprises comprise essential elements that, in contrast to firms, aren't thought of as separate legal entities. For instance, a sole proprietorship is not a separate legal entity.

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Is a business plan a one time fee?

Answers

Answer:

i think so :)

Explanation:

haley is helping to choose members for a customer satisfaction team which of the following employees demonstrate skill in focusing on the team's purpose?

Answers

Answer: Jesse constantly looks for better ways to solve problems for customers

Explanation:

Customer satisfaction refers to the measurement which deals with the happiness and satisfaction of customers with the product and service of a company.

Since Haley is helping to choose members for a customer satisfaction team, then the employee who can help the team focus on the its purpose is Jesse who constantly looks for better ways to solve problems for customers.

jacob does not want to control his workers. he wants them to manage themselves. what kind of leader he is?

Answers

Jacob does not want to control his workers. He wants them to manage themselves. Jacob is showing laissez-faire leadership

Laissez-faire leadership takes a hands-on approach to leadership and gives others the freedom to make decisions. Leaders continue to provide teams with the resources and tools they need to succeed, but they are largely uninvolved in day-to-day operations.

Is laissez-faire leadership good?

Like any leadership style, laissez-faire has its benefits. It promotes personal growth. Employees are given the opportunity to take action because leaders are very hands-on in their approach. This leadership style creates an environment that fosters growth and development.

What are the characteristics of a laissez-faire leader?

Laissez-faire leaders have an attitude of trust and trust toward their employees. Don't micromanage or interfere, give too much direction or guidance. Instead, laissez-faire leaders enable employees to leverage their creativity, resources, and experience to achieve their goals.

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Joni, a college student, has $400 worth of expenses monthly. How much should she save be financially secure?​

Answers

Answer:

200 i think sorry if im wrong

Explanation:

You are borrowing $17,800 to buy a car. The terms of the loan call for monthly payments for 5 years at 8. 6 percent interest. What is the amount of each payment?.

Answers

The amount of each payment of car borrowing = $366.05 monthly payment .

What's a monthly loan payment?

Your monthly payment is what you pay to the lender each month to refund your loan. The quantum you compensate every month depends on the terms of your mortgage loan. This includes the star, which is the factual balance on the loan, and the interest on the loan.

Given :

Purchase value of car = $17,800

Loan Period = 5 years

Annual Interest rate = 8.6%

Calculating Monthly Payment of the Loan:

(Using Formula);

                          PV = C × {1-[1/(1+r)t]}/r

$17,800 = Monthly Payment × {1-[1 ÷(1+0.086/12)⁵ˣ¹²]} ÷ 0.086

$17,800 = Monthly Payment × {1-[1÷ (1.00716667)⁶⁰]}  ÷ 0.00716667

$17,800 = Monthly Payment × {1-0.651507293} ÷ 0.00716667

$17,800 = Monthly Payment × [0.348492707 ÷ 0.00716667]

$17,800 = Monthly Payment × 48.6268667

Monthly Payment × $48.6268667 = $17,800

Monthly Payment = [$17,800 / $48.6268667]

Monthly Payment = $366.05

Interest payment :

Interest is payment from a borrower or deposit- taking fiscal institution to a lender or depositor of an quantum above prepayment of the top sum, at a particular rate. It's distinct from a figure which the borrower may pay the lender or some third party. Interest is defined as the quantum of plutocrat paid for the use of someone differently plutocrat. An illustration of interest is the$ 20 that was earned this time on your savings regard. An illustration of interest is the$ 2000 you paid in interest this time on your home loan.

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Which is not a benefit of a checking account?

Answers

Answer:

no interest

Explanation:

A checking account is a type of account that enables comfortable deposits and withdrawal of money for regular trades.

It can include deposit and withdrawal of cash as well as cheque.

Getting no interest in a checking account is not a beneficial factor.

The benefits of the checking accounts are convenience, easy budgeting and safety.

As compared to the saving account having a proof of payment is the beneficial point of having checking account.

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A household consists of a married couple, their two-year-old daughter. the couple's daughter has no income and lived with her parents all of last year. How many exemptions can the couple claim on last year's tax return if they file with the married filling jointly status

A household consists of a married couple, their two-year-old daughter. the couple's daughter has no income

Answers

The total number of exemptions the couple can claim on their last year's tax return if they file with the married filing jointly status would be three. Option D

How many exemptions can the  can the couple claim on last year's tax return

For tax purposes, an exemption is a deduction from an individual's taxable income for themselves and their dependents. In the given scenario, the household consists of a married couple and their two-year-old daughter. The couple can claim one exemption for themselves and one exemption for their daughter, as she is their dependent and has no income.

Therefore, the total number of exemptions the couple can claim on their last year's tax return if they file with the married filing jointly status would be three (one for each spouse and one for their dependent daughter).

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You need a new computer, and you will need a loan in order to buy one. Which lender is most likely to charge you the highest interest rate on your loan?


A. finance company

B. savings and loan association

C. credit union

D. savings bank

Answers

i would say B or D
hope this helps!! <3

Savings and loan association is the lender is most likely to charge you the highest interest rate on your loan. Hence, option B is correct.

What is the main purpose of a savings and loan association?

Building Societies or Savings and Loan Associations perform the same fundamental duties by gathering funds from the general public and using those savings to fund mortgage loans for residential real estate.

The S&L crisis may have caused the banking sector to collapse with the greatest degree since the Great Depression. By 1989, more than 1,000 S&Ls had failed nationwide, thus destroying one of the most reliable sources of house mortgages.

In that they provide many of the same services, including banking and mortgage financing, savings and loan associations function similarly to banks and credit unions. Savings and loan organizations, however, prioritize savings and mortgages more.

Thus, option B is correct.

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What does the term 'user
experience' refer to regarding a
website?
A. the overall ease of navigation and ability to
purchase on a company's website
B. the general experience a customer has when
using a product of a business
C. the customer experience when dealing with
customer service representatives

Answers

Answer:b

Explanation:

1 point
Danny receives a salary of $660 a month and a 7.5% commission on all
sales above his monthly quota of $15,000. His sales for the month totaled
$32,000. What was his gross income for the month? *
$3,060
$1,275
$2,400
$1,935

Answers

Answer:

1935

Explanation:

32,000-15,000 = 17,000

17,000 x 0.075 = $1275 (this is his commission)

1275 + 660 = $1935

$1935 is his gross income for the month

Your survey indicates the following beverage choices: 20 milk, 13 water, 22 soda, 32 coffee. What percentage of customers can you satisfied if you just serve milk or water?

Answers

If the survey indicates the favorite beverage choices as 20 milk, 13 water, 22 soda, 32 coffee. 38 percentage of customers can be satisfied if you just serve milk or water

A survey is a technique for acquiring data from a sample of people by asking pertinent questions with the goal of comprehending population as a whole. Everyone associated with the economy, from corporations to the media to the government and academia, relies on surveys as a vital source of information and insights. Surveys are research techniques used to gather data from a designated group of respondents in order to learn more and acquire insights into a range of interesting topics. Depending on the technique chosen and the objective of the study, they can be conducted in a variety of methods and serve a variety of objectives.

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the fixed marketing expense totaled $13,000, and the fixed administrative expense totaled $35,000. the price per calendar is $10. how many calendars must paney sell next year to earn an operating income of $24,600?

Answers

$13,000 in fixed marketing costs and $35,000 in fixed administrative costs were incurred. Each calendar costs ten dollars. The unit contribution margin is $6.00.

Marketing is the process of identifying, developing, and delivering value to satisfy a target market's needs for products and services. It may also involve choosing a target audience, choosing specific qualities or themes to emphasize in advertising, running advertising campaigns, participating in trade shows and public events, designing products and packaging that appeal to consumers, and defining the terms of the sale, such as the purchase price, discounts, warranties, and return policies.

The seller, who is usually a manufacturer or merchant, is responsible for marketing. Work is occasionally contracted out.

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enter mia profit/loss for the 2 month

Answers

She profits more each month
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