subject
Business, 21.05.2020 04:09 flex23

Your text argues that investment and the interest rate are negatively correlated, because higher interest rates make borrowing money for investment by a firm from a bank a less attractive option. Firms, in fact, only finance about 20-25% of their new capital by borrowing and the remainder is financed by equity ownership (including reinvesting retained earnings). Prof. Holmes criticized the textbook explanation as illogical and incoherent. What was his criticism (Hint, it involved 4 interest rates or rates of return)

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 22:30
Before contacting the news or print media about your business, what must you come up with first ? a. a media expertb. a big budgetc. a track recordd. a story angle
Answers: 1
question
Business, 22.06.2019 01:50
Atlas manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. currently atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. what is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? a. total manufacturing costs will increase and unit manufacturing costs will also increase. b. total manufacturing costs will stay the same and unit manufacturing costs will stay the same. c. total manufacturing costs will increase and unit manufacturing costs will decrease. d. total manufacturing costs will increase and unit manufacturing costs will stay the same.
Answers: 1
question
Business, 22.06.2019 10:00
Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?
Answers: 1
question
Business, 22.06.2019 11:00
Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units.required: prepare a production budget by month and in total, for the second quarter.
Answers: 3
You know the right answer?
Your text argues that investment and the interest rate are negatively correlated, because higher int...
Questions
question
Biology, 17.07.2019 15:30
Questions on the website: 13722360