A company’s gearing is
a) the ratio of debt to overall assets
b) the ratio of stock market valuation to book value
c) the share price divided by corporate earnings
d) its stockholder’s equity
e) the ratio of taxes paid to the overall wage bill
a) the ratio of debt to overall assets
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How is positive economics different from normative economics?
In finance, the leverage ratio refers to:
A. how a firm decides to borrow funds that it doesn’t have. B. using borrowed money to pay for investments. C. ratio of assets it has relative to its equity. D. ratio of assets it has relative to debt.
What is asymmetric information? Describe with examples
The French highly value domestic production of traditional French cheese made by high-cost, traditional production methods. According to the specificity rule, the most efficient policy tool to protect this traditional industry would be
A. to impose an import tariff on cheeses produced in other countries. B. to tax French exports of non-traditional cheeses. C. to impose an import ban on cheeses produced in other countries. D. to provide a production subsidy to the domestic firms.