Answer:
A. $162,500
B. $17,500
Explanation:
Data
EBIT = $25,000
Tax rate = T = 35%
Discount Rate = r = 10%
Requirement A: Market Value
The Market value of the firm can be calculated by using the following formula
Market Value = 
Market Value = 
Market Value = $162,500
Requirement B: Total value of firm If issues $50,000 of debt paying 6% interest
The market value of the firm increases by the present value of the Interest tax shield
The present value of tax shield = Amount of debt x Tax Rate
The present value of tax shield = $50,000 x 35%
The present value of tax shield = $17,500
The market value of the firm will be increased by $17,500
Answer:
The emphasis that Americans place on economic self-reliance and free markets
Explanation:
The United States was founded under the principles of liberalism, whether legal, political, or economic.
In America, most people believe that free markets are the best way to organize the economy of a country, and that individual self-reliance can result in personal economic success.
Answer:
A. Money left over after taxes are paid - Disposable income
B. Quantity theory of money helps explain the shape of this - Real
C. Part of GDP s definition that captures the quality of goods and services - Market Value
D. Caused by a fall in the money supply - Final
E. Part of GDP s definition that means you exclude used goods and services - Real
F. Sticky prices/wages justifies its shape - Final
G. Part of GDP s definition that means you exclude intermediary goods and services - Market Value
H. Used to make loans - Excess reserves
I. Used to cover withdraws - Disposable income
J. Interest rates are at their lower bound - Real
K. Represents the economy s fundamentals, such as population, capital, and technology - LRAS
L. Adjusted for inflation Final
M. Caused by a collapse of the stock market - Market Value
Explanation:
Long run aggregate supply is adjusted based on the products produced in the country. The supply rate is also adjusted based on demand factor. GDP is the monetary value of all goods and services produced in the country during a certain period.
Answer:
D. social risk
Explanation:
Social risk -
It refers to a specific action , which might affect the well established reputation in the society , is referred to as the social risk .
The action could be the launch of new product , issue in the product , violating any norms of business , corruption etc.
The act can capability hamper the consumers and hence have the risk of losing the consumer , which can have the negative affect on the business .
Hence , from the given scenario of the question ,
The correct answer is social risk .
