Given the following information, answer the following questions. Two firms with the same operating leverage, business risk, and EBIT ($4,000). They only differ with respect to their use of debt (capital structure). Firm A Firm B No debt $10,000 of 12% debt $20,000 in assets $20,000 in assets 40% tax rate 40% tax rate A given change in EBIT will result in a larger change in ROE for Firm ___. A. A B. B C. More information is needed to answer this question

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.