Introduction of the term Risk Principle
Give a brief introduction of the term Risk Principle?
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Risk Principle : this principle deals with the capital structure that must not admit high risk. If company issue big amount of preference shares out of the earnings of the company then fewer amounts will be left for equity shareholders as dividend is paid subsequent to the preference shares.
9. The following table shows annual sales data for Stuff Happens, Inc., over the ten-year 1998-2008 period: Year Sales ($ Millions) 1998 $2.0 1999 2.2 2000 2.4 2001 2.6 2002 2.8 2003 3.0 2004 3.2 2005 3.5 2006 3.8 2007 4.1 2008 4.3 A. Calculate the 1998-2008 growth rate in sales using
Give a brief introduction of the term Financial Leverage?
Contrast a vertically integrated firm, a horizontally integrated firm, and a conglomerate?
The initial systematic and popular description of capitalism was explained in: (1) Sir Thomas Mun’s England’s Treasure by Foreign Trade. (2) Joseph A. Schumpeter’s Capitalism, Socialism, and Democracy. (3) John Maynard Keynes’
Explain: “Affluence tomorrow requires sacrifice today.”
Briefly state the pros and cons of Proprietorship?
Question: What can we learn from the Japanese experience? Is the US headed for a 'lost decade? Answer: There was
Q X= 600- 6PX + 20I +0.4PY c. Suppose PX increases by 10%, by what percentage would sales decrease? Explain how this price increase affect total revenues from good X.
Elucidate how to maintain competition?
Explain: “Exchange is the necessary consequence of specialization.”
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