Explain what will happen to the firm's optimal capital structure as a result of the following changes;
a) An increase in the firm's marginal tax rate
b) an increase in the firm's investment opportunities
c) The founding owner retires from day-to-day management of the firm and hires a professional manager as his replacement
d) a decline in business risk as the industry matures
e) an increase in R&D intensity and marketing expenditures
In: Accounting
Suppose that the USDA expects that 53.3 billion bushels of soybeans will be produced this year at a price of $8.50/bushel. Assume that the elasticity of supply is 0.3 and that the elasticity of demand is -0.2 (both very inelastic).
2. What quota is required to increase the soybean price to $9.25/bushel? And what is the economic cost of this solution (i.e., what is the change in producer surplus and change in consumer surplus, and what is the sum of these changes)?
In: Economics
Since the global financial crisis, regulatory authorities, financial institutions and financial markets globally have increasingly focused on risk and resilience in the banking sector. One of the main changes in the international framework was to increase the amount and quality of capital.
a. What are the rationales behind these stricter capital requirements? (3.5 marks)
b. Discuss the implications of the capital requirements on financial institutions taking into account the current coronavirus pandemic.
In: Finance
Regarding to the relationship between bond maturity and bond value, what’s of the following statements is not correct.
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At maturity, the value of any bond must equal its par value |
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The value of a premium bond would decrease to its par value. |
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The value of a discount bond would increase to its par value. |
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A par-value bond stays at $1,000 even if the market interest rate changes. |
In: Finance
One the main differences between innate and adaptive defenses is that__________.
A) innate defense does not produce memory cells and adaptive defense produces memory cells
B) innate defense is triggered by antigens and adaptive defense responds to changes in the environment
C) innate defense is capable of generating memory cells and adaptive is not
D) innate defense produces antibodies and adaptive defense produces cytokines
In: Biology
Bellevue Company is currently debt-free and expects perpetual annual EBIT of 6,000. Its cost of equity is 16 percent. The firm can borrow at 10 percent. The corporate tax rate is 35 percent. a. What is the current value of the firm? b. What will the value be if Bellevue establishes 50 percent debt ratio? C. What will the value be if Bellevue changes the debt ratio to 100%?
In: Finance
1.Cholesterol is:
essential for good health, but cannont be made by the body in sufficient amounts
found in foods of plant origin
precursor of vitamin C
found only in foods of animal origin
2.Hydrogenation is a process that increases the shelf life of foods by:
changing a solid to a liquid form
adding preservatives to the food
changes an unsaturated fat into a saturated one to stabilize the fat
increasing the amount of fat in the product
In: Biology
In: Finance
“the phase contrast technique employs an optical mechanism to translate minute variations in phase into corresponding changes in amplitude, which can be visualized as differences in image contrast.” Explain this statement in terms of HOW phase contrast works with its 2 optic rings?
In phase contrast microscopy, why do you have to change the Phase Contrast condenser annulus to MATCH the objective you are using?
In: Biology
Use the bond term's below to answer the question
Maturity 6 years
Coupon Rate 3%
Face value $1,000
Annual Coupons
When you buy the bond the interest rate is 4%
Right after you buy the bond, the interest rate changes from 4.00%
to 2.75% and remains there.
What is the price effect in year 5 ?
$9.93
$13.22
$10.93
$12.57
$12.02
In: Finance