a firm finances its activities with both debt (that costs 8%) and equity (that costs 14%). the firm can borrow additional funds at 8% if it so desires. a financial analyst at this firm argues that the firm should undertake any investment that earns a return of at least 8% because such investments will enable the firm to pay debtholders what they require, and any earnings above 8% will go to stockholders. if a firm decides to make investments based on this logic it will .

Respuesta :

Undertake investments that it should decline.

funding is the dedication of cash to the purchase of an asset to obtain an boom in fee over a time period. investment requires a sacrifice of a few gift asset, together with time, money, or attempt. In finance, the cause of making an investment is to generate a go back from the invested asset. The return may additionally consist of a benefit (income) or a loss realized from the sale of a belongings or an investment, unrealized capital appreciation (or depreciation), or investment earnings including dividends, interest, or rental profits, or a combination of capital advantage and earnings. The go back can also consist of currency gains or losses because of modifications in the foreign currency exchange fees.

Learn more about investments here

https://brainly.com/question/25300925

#SPJ4

Otras preguntas