The overhead applied to a job completed during the year that used 200 direct labor hours was $4,000.
The first step is to calculate The predetermined overhead rate
Predetermined overhead rate = $100,000/5,000 direct labor-hours
Predetermined overhead rate = 20 per direct labor-hour
Now let's calculate The overhead applied to the job
Overhead applied to the job = $20 per direct labor-hours *200 direct labor-hours
Overhead applied to the job= $4,000
Therefore, The overhead applied to a job completed during 2021 that used 200 direct labor hours was $4,000.
To learn more about labor, visit the link below:
brainly.com/question/21122849
#SPJ4
Morgan owned a large condominium on the ocean. She died and no legal heirs were found. Who will receive title to the property
According to question, if Morgan died with no legal heirs then ,the state or county receive title to the property .
According to succession law, the spouse (or registered partner) and children are first in line to receive (equal portions of) the estate. Next come brothers, sisters, and parents, then grandparents, and finally great-grandparents.
A person who decided to take legal possession of a deceased ancestor's estate after they went away without leaving a will or designating a legal heir. Therefore, a legal heir is a person who legally or by way of a will inherits an ancestor's property.
To know more about legal heirs visit :
https://brainly.com/question/30204709
#SPJ4
What is a risk factor ?
Risk factors are those elements that are understood to carry a high risk of both illnesses and infections.
Risk factor is an element that raises a person's likelihood of contracting a disease. For instance, both obesity and cigarette smoking are risk factors for heart disease and lung cancer, respectively.
Any quality, trait, or circumstance about a person raises their risk of contracting an illness or suffering a harm. Underweight, unsafe sex, high blood pressure, cigarette and alcohol use, unclean water, sanitation, and hygiene are a few examples of the more significant risk factors.
Age, a family history of specific malignancies, cigarette use, radiation exposure, chemical exposure, infection with specific viruses or bacteria, and genetic alterations are a few examples of risk factors for cancer.
For such more question on Risk factor.
https://brainly.com/question/906698
#SPJ4
Priya only has $500 a month to spend on her campaign, but she needs to drive as many potential customers as possible to her website. Which type of automated bidding strategy would be best for Priya's campaign
The optimal bidding approach for Priya's campaign would be to maximize clicks.
ECPC is what kind of automated bidding?ECPC is a type of Smart Bidding that utilizes a variety of auction-time signals and is an extra accessory with Manual CPC bidding. The optimal bidding approach for Priya's campaign would be to maximize clicks.
What are the two categories of bids?In the procurement process, there really are two types of bids: open or competitive bids and closed "locked" or noncompetitive bids. Typically, competitive bidding occurs using the RFx procedure, which is described below. Some businesses, however, will also use unviable bidding. Selecting a vendor for a project's subcontracting or for acquiring the goods and services needed for the project involves using the bidding process.
about bidding visit:
https://brainly.com/question/28436717
#SPJ4
What are the three main types of organizational buyers?
(1) industrial firms, which in some way reprocess a product or service they buy before selling again to the next buyer; (2) resellers, which are wholesalers and retailers that buy physical products and resell them again without any reprocessing; and (3) government units, which are the federal, state, and local agencies that buy products and services for the constituents they serve
The three main types of organizational buyers are :(1) industrial firms, which in some way reprocess a product or service they buy before selling again to the next buyer;
(2) resellers, which are wholesalers and retailers that buy physical products and resell them again without any reprocessing; and
(3) government units, which are the federal, state, and local agencies that buy products and services for the constituents they serve.
What kinds of organizational buyers exist?Producers, resellers, institutions, and the government might be the primary organizational buyers. Where the company that acquires goods for subsequent production or reproduction is referred to as a producer. Wholesalers, retailers, and agents are examples of organizations that acquire products for the purpose of reselling them.
What exactly are corporate buyers?Individuals who represent a business are known as organizational buyers. These buyers typically take into account both their own preferences and the potential preferences of the customers to whom the organizational buyer's business will market itself when making purchases.
The decision-making process by which an organization identifies, evaluates, and selects among alternative brands and suppliers after determining the need for those products or services is referred to as organizational buying behavior.
Learn more about organisational buyers:
brainly.com/question/14913734
#SPJ4
Entries for Materials GenX Furnishings manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric Polyester filling Lumber Glue The materials purchased during June are summarized from the receiving reports as follows Fabric Polyester filling Lumber Glue Materials were requisitioned to individual jobs as follows $40,500 28,600 62,400 6,550 $440,000 180,000 360,000 40,000 Polyester Filling Fabric $205,000 110,000 130,000 Lumber Glue Total Job 601 Job 602 Job 603 Factory overhead-indirect materials Total $400,000 234,000 310,000 $34,800 34,800 $166,000 $333,000 $34,800 $978,800 $75,000 $120,000 88,000 55,000 125,000 36,000 $445,000
Journal entries for materials are used to record the purchase. Therefore, $1,020,000 is debited to Materials and credited to Accounts Payable.
What does journal entry mean?A journal entry is a record of business transactions in your books of accounts. Double-entry bookkeeping creates at least two journal entries for each transaction. A single transaction can cause many changes in a company, so accountants track them all in journal entries.
Journal entries fall into six main types: opening journals, transfer journals, closing journals, adjusting journals, compound journals, and reversing journals. Each of these entries has a specific function in accounting.
What are Tally's journal entries?Tally ERP 9 uses Journal Vouchers to record cash and non-bank financial transactions. Journal entries record transactions related to depreciation, accruals, credit fixed asset sales, depreciation balances, and adjustment transactions.
To learn more about journal entry visit:
https://brainly.com/question/20421012
#SPJ4
Which of the following steps is necessary to ensure that a master schedule is valid?
A. worker scheduling
B. order promising
C. inventory counting
D. order booking
E. rough-cut capacity planning
Rough-cut capacity planning steps is necessary to ensure that a master schedule is valid.
What is Rough cut capacity?
Rough cut capacity planning is a method of determining the total available capacity of a manufacturing facility. This type of capacity planning is typically used in the early stages of production planning, when a company is trying to determine how much output it can handle and the resources it will need to meet that output. It is an estimate of capacity that does not take into account any adjustments for efficiency or other factors.
What is a Master schedule?
A master schedule is a detailed timetable of the activities and resources required to complete a project. It is used to coordinate the efforts of the project team and ensure that tasks are completed on time and within budget. The master schedule outlines the timeline, tasks, resources, and milestones of the project.
Therefore the correct option is E. rough-cut capacity planning.
To know more about Rough cut Capcity,
https://brainly.com/question/24281112
#SPJ4
. If a 30 percent change in price causes a 15 percent change in quantity supplied, then the price elasticity of supply is about
Microeconomics Principles (ACTS Equivalency: ECON 2203). Price elasticity is roughly 0.5, and demand is inelastic if a 30% change in price results in a 15% change in the amount delivered.
The breadth and organization of the majority of introductory economics courses are covered in Principles of Economics 2e. Many recent instances are used throughout the course, and they are all treated fairly from a political standpoint.
When price changes result in a disproportionately modest change in the quantity required, there is inelastic demand. For instance, a good with quantity demanded may have a price increase of 30% while only experiencing a 10% decline in demand as a result.
The relationship between the percentage change in a product's quantity demanded and the percentage fixed price is known as price elasticity of demand. It helps economists comprehend how demand and supply shift in response to changes in a product's price.
Learn more about Price elasticity here:
https://brainly.com/question/13565779
#SPJ4
Sharing information, collaborating, and coordinating resources to jointly manage a process is referred to as _______.
Sharing information, collaborating, and coordinating resources to jointly manage a process is referred to as process integration. Hence, the correct answer is process integration.
What does process integration mean?Process integration encompasses not only the design of new facilities but also retrofit design and the operation of existing systems. According to Nick Hallandale, process integration allows enterprises to make more money from their raw materials and capital assets while also being cleaner and more sustainable.
The major benefit of process integration is that it allows you to look at a system as a whole in order to enhance its design and/or operation. An analytical approach, on the other hand, would aim to enhance or optimize process units independently, without necessarily taking advantage of potential interactions between them.
To learn more about capital assets, click
https://brainly.com/question/22094873
#SPJ4
Toy businesses take advantage of procrastinating consumers by racking up the price of their products right before the year-end holidays when most children get presents. Wise consumers have noted this strategy and have adjusted to it accordingly. Which one of the graphs below depict their economic behavior during the beginning of November just prior to the holiday buying season?
Graph A depict their economic behavior during the beginning of November just prior to the holiday buying season.
What is holiday?
Holiday is a period of time away from work or school, usually spent in relaxation or recreation. It is an opportunity to take a break from the usual routine, to rest and recuperate, and to spend time with family and friends. Holidays can be used for spiritual retreats, sightseeing, or simply to enjoy a change of pace. Holidays can be taken for religious or cultural purposes, or simply for fun and adventure. They can involve travelling to new and exciting places, or simply staying at home and taking the time to appreciate the little things. Holidays can be taken alone or with friends and family, and can be as short or as long as desired.
To learn more about holiday
https://brainly.com/question/15989389
#SPJ4
A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation. What is the annual tax liability
$2,385. A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation By definition, a tax liability is simply the amount of money.
owing by a business or person to a taxing entity, such as the Internal Revenue Service (IRS). Set it up like this to find the answer to this;mIf $1000 has a taxable value of 4.5 mills, how much would 530,000 pay If $1000 = 4.5 so $530,000's tax obligation would be equal to (530,000 * 4.5) / 1,000. = 2,385,000/ 1000 = $2,385 The amount that a person, company, or other organization owes to a federal, state, or local tax body is known as their tax liability. In general, you owe taxes when you earn money or make gains off of the sale of an investment or other item.
learn more about tax here:
https://brainly.com/question/16423331
#SPJ4
How do I open a bank account Short answer?
Selecting a bank and giving it the required documentation, such as identification and proof of address, is required in order to create an account.
How To Open a Bank Account ?Selecting a bank and giving it the required documentation, such as identification and proof of address, is required in order to create an account. For most banks, eligibility standards call for a minimum age of 18. The account may also require funding or a minimum balance to avoid costs.A government-issued ID, your ID number, and your physical and mailing addresses are required to open an account.Read the disclosures before choosing an account to find out about any account fees or minimum balance requirements.Depending on the characteristics you need—high interest rates, minimal balance requirements, no ATM fees, etc.—you can choose the bank or account you desire.To Learn more About Selecting a bank Refer To:
https://brainly.com/question/13834098
#SPJ4
Because of the slope of the aggregate demand curve we can say that a decrease in the price level:
A. leads to a decrease in aggregate demand
B. leads to an increase in aggregate demand
C. leads to a higher level of real GDP demanded.
D. leads to a lower level of real GDP demanded
We can infer from the slope of the aggregate demand curve that a fall in price level C. leads to a rise in the level of real GDP demanded.
How Does the Level of Prices Relate to Aggregate Demand?The economy's supply and demand are mostly determined by the prices of commodities and services. However, the opposite is also true: variations in supply and demand have an effect on the cost of goods and services. The relationship between total demand and average price levels is not always obvious or direct. However, in the broadest sense (and under ceteris paribus circumstances), a rise in aggregate demand is accompanied by a rise in the level of prices.
When its constituent parts, such as government expenditure, investment spending, and consumption spending, aggregate demand rises.
To know more about Economy Supply visit: https://brainly.com/question/13774718
#SPJ4
Most tenants sign a lease. Which of the following is part of a lease agreement? a. The name and address of the buyer. b. The amount of the down payment c. The interest rate for a lease loan d. The sale date e. The conditions under which the landlord may enter the apartment.
Most renters a sign a lease. A leasing agreement must include the following: (e). the conditions of the landlord's access to the apartment.
Describe a lease agreement?A lease is a legal agreement that requires the user to pay the owner for the use of a property.
Common assets that are leased include real estate, buildings, and automobiles. Leasing is also done for commercial or industrial equipment. In its simplest form, a lease agreement is a contract between the lessor and the lessee. The asset is legally owned by the lessor, who also receives the right to use it in exchange for recurring rent payments from the lessee. In addition, the lessee undertakes to follow certain rules when using the property or equipment.
To know more about Lease visit: https://brainly.com/question/23450043
#SPJ4
What are the 5 most common budgeting methods?
Companies typically utilize one of the following five types of budgets: incremental, activity-based, value proposition, rolling, and zero-based. Each of these four budgeting techniques has benefits and drawbacks.
You may wish to determine where your money is going before choosing a new or alternative budgeting strategy so that you are aware of the areas that require your attention.
According to Megan Luke, chief operating officer at PNC Bank, "a simple approach to get things going is to gather all of your receipts for a month or two for every $1 you spend." Sort the receipts for food, petrol, entertainment, and other expenses into piles at the end of the month. This will offer you a clear view of your current expenditure and present possibilities to find ways to modify and possibly save.
know more about budget here
https://brainly.com/question/15683430#
#SPJ4
A town has a total assessed valuation of $32,000,000 and exemptions of $7,000,000. What is the tax base
Taxes are essentially forced contributions from the populace to the government; in this case, the tax base is $25,000,000.
A tax base example is what?The whole dollar amount of taxable income, in the case of the personal income tax, or the total dollar value of real estate, in the case of the real property tax, are two examples of tax bases that are often measured as a dollar amount to which a tax rate is applied.
To expand the tax base, what does that mean?When a tax base grows, more people and companies are contributing to the expenses of maintaining the community. The proportion of taxes that fall on an individual decreases as the tax base expands as a result of higher sales.
To know more about tax base visit :-
https://brainly.com/question/20127586
#SPJ4
based on the information you used to create your schedule and curve, which product would you recommend the shoe hut focus on
Based on the data you used to develop your schedule and curve, Shoe Cut should concentrate on the running shoe category of products, in your opinion.
When the company's resources are on the PPF, they may be fully exploited ( Production Possibility Curve). Without sacrificing another good, it is impossible to produce more goods. For the purposes of the study, we can assume that combination B produces 12 units of running shoes and 2 units of hiking boots.
If the hiking boots are skipped, an additional 3 pairs of running shoes can be made. Running shoes can hold up to 15, while hiking boots can only hold up to 10. Therefore, Shoe Hut should concentrate on creating running shoe inserts.
To know more about Shoe Hut click here: brainly.com/question/14874888
#SPJ4
Correct Question:
Based on the information you used to create your schedule and curve, which product would you recommend that Shoe Hut focus on, and why? Provide details that support your answer.
The discovery of a large amount of previously-undiscovered oil in the U.S. would shift
a) the long-run aggregate-supply curve to the right.
b) the long-run aggregate-supply curve to the left.
c) the aggregate-demand curve to the left.
d) None of the above is correct.
The long-run aggregate-supply curve would be moved to the right in the event that a significant amount of previously undiscovered oil was found in the United States. the lengthy term (b)
What is aggregate supply formula
The short-run aggregate supply is calculated using the equation Y=Y+(PPe). In the equation, Y stands for the economy's output, Y* for its natural level, coefficient is always positive, P stands for the current price level, and Pe stands for the predicted price level. To determine the state of the economy, economists use a variety of macroeconomic and microeconomic criteria. The general demand for the goods and services produced is one of the most significant criteria they take into account. Aggregate demand is the term used to describe this.
Know more about the United States visit:
https://brainly.com/question/25148357
#SPJ4
________ are professional accountants who serve the general public, not one particular company.
A. certified public accountants
B. certified management accountants
C. cost accountants
D. controllers
certified public accountants are professional accountants who serve the general public, not one particular company. so option A is correct.
What is a Certified Public Accountant referred to as?Chartered Professional Accountant (CPA) Professionals in accounting who are licensed and devoted to defending the public interest are identified by the CPA designation. To help investors better understand the financial health of firms, these experts provide attestation services such as financial statement audits. Within one to two years, CPA-certified accountants rise to jobs with greater responsibility, and within a few years after that, they frequently receive promotions to senior level positions. The time and effort spent studying for and passing your CPA examination will be more than worthwhile after you have done so.
To know more about Certified Public Accountant visit:
https://brainly.com/question/13459412
#SPJ4
Which of the following is NOT a characteristic of a successful incentive pay plan?
a. complex and comprehensive rules
b. simplicity
c. consistency with the organization's existing goals
d. clear and realistic goals
e. regular communication with employees about the incentive plan
Option (a), A good incentive pay plan DOES NOT include complicated and extensive restrictions.
What qualities make an incentive program effective?For an incentive program to be effective, it must be both compelling and realistically attainable to keep participants motivated. According to general best practices, the aim should be set at the average success level, with 20% over that serving as a stretch goal having potential for earnings growth.
Systems of incentive payments may include what?Employees' pay is not always limited to their set salary. The corporation reserves the right to offer various individuals or groups bonuses to improve it. Examples are the seniority bonus, activity bonus, Macron bonus, and bonus for attendance.
Learn more about incentive pay plan: https://brainly.com/question/29219916
#SPJ4
Which of the following would be considered an Other Comprehensive Income item? Gainon disposal of discontinued operations Net income Unrealized loss on available for a securities Other revenues and gains
Gain on disposal of discontinued operations would be considered an Other Comprehensive Income item.
Other Comprehensive Income (OCI) is a separate component of a company's equity that includes certain non-recurring items and changes in the value of certain assets and liabilities that are not included in net income. Examples of items that are commonly included in OCI are:Gains and losses on investments in securities that are classified as available-for-sale. Foreign currency translation adjustments. Unrealized gains and losses on certain derivative instruments.Gains or losses from the remeasurement of certain defined benefit pension plans and other post-employment benefit plans.Reclassification adjustments for certain items that were previously included in OCI but are now reclassified to net income.Gains or losses on the disposal of discontinued operations.Net income, unrealized loss on available for sale securities and Other revenues and gains would be considered as part of the income statement which is different from OCI.
To learn more Other Comprehensive Income here:
https://brainly.com/question/14814430
#SPJ4
Which of the following assertions is not correct about themultilateral approach to free trade?
a. The multilateral approach has the potential to result infreer trade than does the unilateral approach.
b The multilateral approach may have a politicaladvantage over the unilateral approach.
c.the multilateral approacvh is simpler than unilateralapproach.
d.NAFTA and GATT are both multilateral approaches to freetrade
The multilateral approach to free trade - c. the multilateral approach is simpler than the unilateral approach is incorrect statement.
a. The multilateral approach has the potential to result in freer trade than does the unilateral approach.This statement is correct, in a multilateral approach, many countries negotiate and agree on trade agreements together thus it has the potential to result in freer trade among all participating countries than would be possible through a series of bilateral agreements.b. The multilateral approach may have a political advantage over the unilateral approach.This statement is correct, as the multilateral approach can provide a global framework for trade and can be seen as more fair and equitable than a series of bilateral agreements that might be perceived as favoring certain countries.d. NAFTA and GATT are both multilateral approaches to free trade.This statement is not correct, NAFTA is a regional trade agreement between Canada, Mexico and the United States, while GATT (General Agreement on Tariffs and Trade) was a multilateral agreement to reduce tariffs and other trade barriers among many countries.
To learn more about multilateral here:
https://brainly.com/question/29770288
#SPJ4
Alex, a physician, renders aid to Burt, who is injuredand unconscious. Alex can recover the cost of the aid from Burt a. only if Burt was aware of the aid. b. only if Burt was not aware of the aid. c. even if Burt was not aware of the aid. d. none of the above.
The answer to this question is c, even though Burt didn't know about the help. In most cases, a doctor providing aid to an injured person is considered an act of charity or goodwill.
It is unlikely that a doctor would be able to recover the cost of a device from an unconscious patient, and regardless of whether the patient knew about the device or not. This means that if a doctor provides assistance to an unconscious patient and the patient was aware of the assistance before falling unconscious, the doctor could recover the costs of the assistance from the patient.
To know more about goodwill click here
https://brainly.com/question/22428604
#SPJ4
Financial Accounting by Thomas and Tietz, 13th edition, 2022 (published by Pearson) with MyLab access.
"Financial Accounting" by Thomas and Tietz, 13th edition, 2022 (published by Pearson) with MyLab access is a textbook that provides students with an introduction to financial accounting concepts and principles.
This edition of the textbook is the most recent one, published in 2022 by Pearson, one of the leading publishers of educational materials. It is written by Thomas and Tietz, who are experienced authors in the field of financial accounting.
The textbook is designed to help students understand the financial statements and their uses, as well as how to analyze, record, and report financial information. The 13th edition of the textbook is expected to have updated content, new examples and case studies, and new ways of presenting the material to make it more accessible to students. Additionally, the textbook comes with MyLab access, which is an online learning platform that provides students with interactive and personalized learning experiences, such as quizzes, simulations, and tutorials. MyLab's access will help students practice and reinforce the concepts learned in the textbook and improve their understanding of the material.
Learn more about financial statement here: brainly.com/question/26240841
#SPJ4
Refer to Figure 15-8. What is the socially efficient price and quantity? a. price= A; quantity = X
b. price = B; quantity = Y
c. price = B; quantity = X d. price = C; quantity = X
The right response is b. The socially optimal price and quantity are: price = B; and Y.
Definition of Equilibrium Monopoly.When a monopoly unjustly restricts supply to drive up prices, it still maintains its equilibrium of marginal cost equal to marginal income. The same intercept and twice as steep a slope for the marginal revenue are present on a linear demand curve.
Prices and quantities that would be offered in a fully competitive market are those that are socially efficient. This happens when demand and marginal cost are equal at price B and quantity Y. This suggests that any deal that might have benefited both parties may have taken place. Monopolies would strive to operate at quantity X and price A.
Learn more about Monopoly: https://brainly.com/question/17205622
#SPJ4
The complete question is:
Refer to the figure below. What is the socially efficient price and quantity?
a. price = A; quantity = X
b. price = B; quantity = Y
c. price = B; quantity = X
d. price = C; quantity = X
Which of the following would be a consideration for "sell as is or process further" decisions?
A) Revenue generated if sold "as is"
B) Revenue generated if "further processed"
C) Costs involved in further processing
D) All of the above
A 3. 75 percent coupon bond is currently quoted at 88. 3 and has a face value of $1,000. What is the amount of each semi-annual coupon payment if you own four of these bonds
Each semiannual coupon payment on a 3.75 percent coupon bond with a face value of $1,000 is $37.50. If you own four bonds, then the total semiannual coupon payments would be $150.
This means that you would receive a total of $150 every six months that coupon payments are due. Coupon payments are based on a face value of $1,000; so even though the bonds are trading at a discount (88.3 in this case) you still receive a coupon payment of $37.50 per bond semi-annually. Coupon payments are fixed and are not affected by the market price of the bonds.
To know more about coupon bond click here
https://brainly.com/question/18803974
#SPJ4
What are capital resources in the economy?
Capital resources include money to start a new business as well as everything else that individuals develop to make goods and provide services.
In order to produce goods and services, a corporation need capital resources, which are man-made resources. Businesses can continue to be productive and provide services to their clients with the help of capital goods. Infrastructure, machinery, and other capital resources are examples. Clean energy projects are paid for with the help of money sources, which are managed by capital providers. For instance, a bank may use the deposits made by its clients as a source of capital; however, in this case, the bank manages the money's investment. All assets created by humans and employed in the production of goods are referred to as capital resources. These resources include things like machinery, buildings, and other things. Any equipment or resource used by a company in the creation of goods or services is referred to as a capital resource.
Learn more about Capital resources here
https://brainly.com/question/30124404
#SPJ4
What are the elements of business environment?
1. Economic environment: This includes factors such as inflation rate, interest rate, economic growth rate, disposable income and the purchasing power of consumer.
2. Social environment: This includes factors such as population, values and culture, education level and demographics.
3. Political environment: This includes factors such as government policies, regulations and tax laws.
4. Technological environment: This includes factors such as availability of the technology, innovation and research and development.
5. Legal Environment: This includes factors such as laws, regulations and court decisions that affects the businesses.
6. Natural environment: This includes factors such as climate, natural resources and pollution.
To know more about business environment click here
https://brainly.com/question/28962722
#SPJ4
_____ is behavior that conforms to generally accepted social norms. a. Ethical behavior b. Maladaptive behavior c. Passive behavior d. Deficit behavior.
Option A is correct. Ethical behavior is behavior that conforms to generally accepted social norms
Ethical behavior is behavior that conforms to generally accepted social norms and values. It is behavior that is considered to be morally right and responsible, and is in line with societal expectations and standards. Ethical behavior is often associated with integrity, fairness, and responsibility. While maladaptive behavior is a pattern of behavior that is not appropriate or effective in dealing with life's demands, passive behavior is a tendency to avoid or withdraw from social interactions, and deficit behavior is a pattern of behavior that is significantly below the standards expected for the individual's age, cultural background, and stage of development.
Know more about Ethical behavior - https://brainly.com/question/29751317
#SPJ4
An investor who buys the common stock of a levered firm is subject to more risk due to the addition of
Legal and administrative costs increase the risk that an investor takes on when purchasing a company's common stock shares.
Why does leverage raise the risk to shareholders?According to the study, investors request bigger returns when leverage rises in order to make up for the increased financial risk. As a result of shareholders expecting larger returns to make up for the increased financial risk, the outcomes make economic sense.
What connection exists between the return and leverage risk?With leverage, the assets' risk (and thus return) is reduced. This suggests that when leverage increases, the debt to equity ratio raises the return on equity while the return on assets decreases it.
To know more about common stock shares visit :-
https://brainly.com/question/13762106
#SPJ4