Answer:
D. especially large and sustained government borrowing
Explanation:
When a government spends more than it collects in taxes, it runs a budget deficit. When the government starts borrowing large sums too much, it can substantially facilitate the reduction in the financial capital available to private sector firms, as well as lead to trade uncertainties and even financial crises.
Answer:
The correct answer is letter "A": path dependence.
Explanation:
Path dependency refers to the stage in which a company does not engage new ventures because it is too familiar with its current processes. Besides, the entity has the belief that continuing with the historical product is has been offering is more cost-effective than engaging in the production of a new good.
<em>The competitive advantage of the institution remains the same during the whole time which is a weakness because the market of the firm could change but the firm does not implement any measure to keep the pace of the market fluctuations.</em>
Answer:
The correct option will be a. Late Payment Fee
Explanation:
A late payment fee also know as late charge is a charged to a borrower who misses paying at the stipulated payment date based on the agreement. For you to avoid paying that fees, ensure that you pay at least the minimum amount by the due date. So among all fees stated, all are charges made by the bank, but the late charge fee is not included until u failed to make payment on time, while others are fixed charges put in place by the banks.
Answer:
The answer is "8.37%".
Explanation:
Equity charges
By DDM.
Debt expenses
Bond1
![Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}](https://tex.z-dn.net/?f=Bond%20%5C%20Price%20%3D%20%5Csum%20%20%5B%20%5Cfrac%7B%5Ctext%7B%28Semi%20Annual%20Coupon%29%7D%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B2%7D%29%5Ek%7D%5D%20%20%20%20%20%2B%20%20%20%5Cfrac%7BPar%5C%20%20value%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B2%7D%29%5E%7BN%20%5Ctimes%202%7D%7D)
![k=1\\\\K =20 \times 2\\\\980 = \sum [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] + \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\](https://tex.z-dn.net/?f=k%3D1%5C%5C%5C%5CK%20%3D20%20%5Ctimes%202%5C%5C%5C%5C980%20%3D%20%5Csum%20%20%5B%20%5Cfrac%20%7B%285.1%20%5Ctimes%20%5Cfrac%7B1000%7D%7B200%7D%29%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B200%7D%29%5Ek%7D%5D%20%2B%20%20%20%5Cfrac%7B1000%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B200%7D%29%7D%5E%7B20%20%5Ctimes%202%7D%5C%5C%5C%5Ck%3D1%5C%5C%5C%5C%5C%20YTM1%20%3D%205.2628923903%5C%5C%5C%5CBond2%5C%5C)
![1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\](https://tex.z-dn.net/?f=1080%20%3D%5Csum%20%5B%5Cfrac%7B%285.6%20%5Ctimes%20%5Cfrac%7B1000%7D%7B200%7D%29%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B200%7D%29%5Ek%7D%5D%20%2B%5Cfrac%7B1000%7D%7B%281%20%2B%5Cfrac%7BYTM%7D%7B200%7D%29%5E%7B12%20%5Ctimes%202%7D%7D%20%5C%5C%5C%5Ck%3D1%5C%5C%5C%5CYTM2%20%3D%204.72%5C%5C%5C%5C)
The cost of the debt for the company:
Business debt cost=
after taxation cost of debt:
<span>keep it small, especially in the beginning
Small businesses die when you expand too quickly in the beginning</span>
