One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that:A. the firm will select only all-equity financed projects. B. stockholders expropriate value from bondholders by selecting high-risk projects. C. the firm will always select the lowest-risk project available. D. bondholders expropriate value from stockholders by selecting high-risk projects. E. the firm will rank all projects and select the project which results in the highest expected firm value.
Answers: 2
Business, 22.06.2019 08:30
Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturerâs national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturerâs bank will be able to extend as the result of truckâs deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fedâs action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.
Answers: 1
Business, 22.06.2019 17:00
Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of âeaster eggsâ: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?
Answers: 2
Business, 22.06.2019 17:00
Afinancing project has an initial cash inflow of $42,000 and cash flows of â$15,600, â$22,200, and â$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?
Answers: 1
Business, 22.06.2019 19:40
Which term describes an alternative to car buying where monthly payments are paid for a specific period of time, after which the vehicle is returned to the dealership or bought? a. car financing b. car maintenance c. car leasing d. car ownership
Answers: 3
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's...
History, 13.10.2021 02:50
Physics, 13.10.2021 02:50
Mathematics, 13.10.2021 02:50
English, 13.10.2021 02:50
Mathematics, 13.10.2021 02:50
English, 13.10.2021 02:50
Biology, 13.10.2021 02:50
Mathematics, 13.10.2021 02:50