mm's proposition ii states that the required return on equity increases as the firm's debt-equity ratio increases.

Answers

Answer 1

The firm's optimal capital structure is determined by finding the level of debt that is sufficient to minimize the cost of capital while keeping the financial risk in check.

MM’s Proposition II states that the required return on equity increases as the firm's debt-equity ratio increases. This proposition explains that the value of a firm is not impacted by the financing structure. According to MM, the cost of equity rises due to the increase in the financial risk when the firm increases its debt and thus, its financial leverage.

The formula to calculate the required rate of return is:

Required rate of return on Equity = Risk-free rate of return + Beta × Market risk premium

Here, beta refers to the risk factor of the stock under consideration. According to MM’s Proposition II, the required return on equity is represented by the formula as follows:

Re = Ro + (Ro - Rd) × (D/E)

Where,

Re = Required return on equity,

Ro = Return on assets (ROA),

Rd = Cost of debt, and

D/E = Debt-to-equity ratio.

However, in the real world, taxes and bankruptcy costs affect the value of a firm. Therefore, the MM’s proposition does not work in the practical world as these propositions were designed with a set of unrealistic assumptions.

In conclusion, MM’s Proposition II explains that as the debt-equity ratio increases, the required return on equity also increases, leading to an increased cost of equity. Therefore, the firm's optimal capital structure is determined by finding the level of debt that is sufficient to minimize the cost of capital while keeping the financial risk in check.

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Related Questions

when should you use the "Reply All" function when replying to an email?

Answers

Answer:

"when should you use the 'Reply All' function when replying to an email?"

Explanation:

In group chats and zoom invites, any invites really.

Answer:

Whenever all the recipients of a message need to read your response.

a ___________ is usually over $300, but can vary depending on the person.

Answers

A substantial investment is usually over $300 but can vary depending on the person.

A substantial investment refers to a significant amount of money allocated towards a particular endeavour, typically exceeding $300. However, the exact threshold of what constitutes a substantial investment may vary based on individual circumstances and financial capabilities. The term "substantial" implies a considerable or significant amount of money, indicating that the investment carries a weighty financial commitment. While $300 can be considered substantial for some individuals, it may be a relatively modest sum for others, depending on their income, wealth, and personal financial goals.

Factors such as personal financial circumstances, investment objectives, and risk tolerance play a crucial role in determining what is considered substantial for an individual. For someone with limited financial resources, a $300 investment may represent a significant portion of their available funds and may require careful consideration. On the other hand, individuals with higher incomes or greater financial stability may consider a substantial investment to be significantly larger, involving thousands or even millions of dollars. It is important to note that the term "substantial investment" is subjective and relative, varying from person to person based on their financial situation and individual perspective.

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What does it mean to reconcile a checking account?

Answers

Reconciling your account basically means comparing two sets of records (yours and the bank's)
To reconcile a bank statement, the account balance as reported by the bank is compared to the general ledger of a business. ... Similarly, the bank too keeps an account for every customer. In the bank books, the deposits are recorded on the credit side while the withdrawals are recorded on the debit side.

What is the product 0.3 × 8.7? please help me

Answers

Answer:

2.61

Explanation:

the answer is 2.61 because if you multiply it will be 2.61

One of the most important things an international business person can do to avoid cultural misunderstandings is to
a. ensure that contracts are tightly worded
b. choose a common language like English
c. adopt a laissez faire attitude
d. listen to your client or customer
e. hire and interpreter

Answers

Listening to your customers or clients is one of the most crucial things an internationally entrepreneur can do to prevent cultural misconceptions.

What does the term customer mean?

A shopper is a person or business that purchases goods or services from the other business. Customers are crucial since they generate revenue. A person or group is regarded as a customer if they have used the company's products or services.

Which types of customers are there?

The one's who occasionally shop yet primarily rely the sales to complete purchases are known as discount shoppers. customers who are driven to buy a specific product out of necessity. Wandering purchasers are customers who are undecided of what they want to purchase.

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A and B formed a partnership, each contributing non-cash assets into the partnership. Partner A contributed inventory with a current market value in excess of its carrying amount. Partner B contributed fixed asset with a carrying amount in excess of its current market value. At what amount should the partnership record each of the assets contributed?

Answers

Answer:

A and B both are responsible for this result

Each partner has a separate withdrawal account as well as a separate capital account for investments and their respective shares of net income or loss. Hence option A and B is correct .

What are the partnership Account ?

To keep track of the money taken out of the company for personal purposes, a withdrawal account is employed. During the closing procedure, the net gain or loss is added to the capital accounts. During the closing process, the withdrawal account is likewise closed to the capital account.

The partnership determines the net realisable or fair market value of the assets when a partnership is created or a partner is added and contributes assets other than cash.

For instance, the partnership assesses the collectability of the accounts receivable if the Walking Partners company adds a partner who provides equipment and accounts receivable from an already existing business.at their net realisable worth, and records them.

Since the partnership would create its own reserve account, an existing valuation reserve account (often known as an allowance for questionable accounts) would not be transferred to the partnership.

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#1 You are driving down the highway when one of your tires suddenly blows out. You should

Pump your brakes rapidly, and steer your vehicle to control any skids.

Avoid using your brakes. Slow down gradually and concentrate on steering.

Press hard on your brake pedal and stop as quickly as you can.

Answers

Avoid using your brakes. Slow down gradually and concentrate on steering

Market research is used to gather information needed to make a business

Market research is used to gather information needed to make a business

Answers

Answer:

Yvonne observe ochre oxen

An employer can refuse to hire you if you refuse a drug screening test or background check.

Answers

Answer:yes

Explanation:

Answer:

true

Explanation:

Help pleazzz

Question 1
Choose the best definition of synthesizing information.


A. You must use the most important information from several sources to create something new.


B. You must find information from many sources and cite each source separately.


C. You must copy the most important quote from a source to restate relevant facts.



Question 2
The purpose of synthesizing information is to:


A. state one fact from one source to focus on one detail to support a claim, main idea, or thesis.


B. think critically about information from many sources and use that evidence to support a claim, thesis or larger idea that may not be stated directly (but you can show us through evidence how you came to your big, new idea).


C. prove that your facts are the most relevant facts to support your thesis or claim.



Question 3
In-text citations appear at the end of the paper.


True

False



Question 4
The purpose of a citation is the following:


A. to share the source of text evidence and where it is found so that people can see the source of your information and read more about a topic if they would like to.


B. to share text evidence / information to support a thesis


C. to share text evidence / information that is synthesized



Question 5
A works cited page at the end of a paper should contain the following formatting:


A. be formatted in alphabetical order, be double-spaced, and use hanging indents if there is more than one line.


B. include a photograph of the author, magazine, or book


C. be formatted from the newest source to the oldest source.

Answers

Question 1: The best definition of synthesizing information is A. You must use the most important information from several sources to create something new. This involves combining information to form a new understanding or perspective.

Question 2: The purpose of synthesizing information is B. think critically about information from many sources and use that evidence to support a claim, thesis, or larger idea that may not be stated directly (but you can show us through evidence how you came to your big, new idea).
Question 3: False. In-text citations appear within the body of the paper, not at the end.
Question 4: The purpose of a citation is A. to share the source of text evidence and where it is found so that people can see the source of your information and read more about a topic if they would like to.
Question 5: A works cited page at the end of a paper should be formatted with the following: A. be formatted in alphabetical order, be double-spaced, and use hanging indents if there is more than one line. This ensures proper organization and easy access to sources for readers.

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Germany did not allow Walmart to sell some items below cost, an example of how a foreign government can constrain _________, which here made it impossible for Walmart to compete with local discount stores.

Answers

Answer: pricing strategy

Explanation:

Pricing strategy refers to method that companies or organizations use in order for them to price their products.

Germany not allowing Walmart to sell some items below cost simply shows an example of how a foreign government can constrain pricing strategy. The reasoning behind this by Germany is to help it's local industries and help prevent it from foreign competition which may end up limiting their growth.

(T/F) When demand and supply are not equal in a transportation problem then the problem cannot be solved.

Answers

The given statement "When demand and supply are not equal in a transportation problem then the problem cannot be solved" is false because in this case, the problem can still be solved by either adjusting the supply or the demand, or by introducing additional sources or destinations to balance the supply and demand.

A transportation problem is a type of linear programming problem that deals with the distribution of goods from several sources to several destinations in the most efficient manner possible.

Several methods can be used to solve transportation problems, including the Northwest Corner Method, the Least Cost Method, and the Vogel's Approximation Method. These methods can be used to find the optimal solution that minimizes the total transportation cost while satisfying the demand and supply constraints.

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If you have an orientation where you are completing training exercises on a computer, it is probably a ____.
A new hire orientation
B interactive orientation
C reorientation
D mentorship

Answers

Answer: new hire orientation

Explanation:

New employee orientation is used in order to welcome newly employed workers to the organization and this is done in order to integrate the new workers into the system, train them, and make them feel welcomed and part of the organization. .

This helps to boost the confidence of the employees, leads to increase in the retention of employees and also boost employees morale.

Interaction orientation simply means the interaction that takes place between companies and their customers and this is done in order to improve the relationship with customers and achieve organizational goals.

Mentorship simply means having a mentor to guide an individual. Reorientation simply means to change a particular focus or mindset of certain people.

Based on the explanation, the answer is new hire orientation.

Answer:

A

Explanation:

Bought goods
for
cash $100
to double
entry system.

Answers

Purchases account is going to increase on the credit side and the cash account is going to decrease ( to be written on the credit side).

Answer:Purchase account Dr.$100

              cash account Cr.$100

Explanation:

According to the box "Outline of a Comprehensive Business Plan," it is reasonable to assume that a quality business plan will take

Multiple Choice

O

O

O

at least six months

over a year

around one or two weeks

about two months

to generate. T

Answers

As stated in the box "Outline of a Comprehensive Business Plan," a quality business plan should take around two months to generate. Thus, Option D is correct.

A quality business plan typically takes about two months to generate, as it requires careful research, analysis, and planning of various aspects of the business, including its market, competition, financial projections, and management structure. However, the time required to develop a business plan can vary depending on the complexity of the business, the availability of information, and the resources available to the entrepreneur or team developing the plan.

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1. Which is the common factor of 24 and 32?
D. 32
D. 28
D. 19
A 8
B. 16
C. 24
2. What is the greatest common factor of 14 and 567
A7
B. 14
C. 21
3. What is the greatest common factor (GCF) of 16 and 24?
A. 6
B.8
C. 12
4. Which of the following is the greatest common factor of 28 and 367
A. 4
B.7
C. 8
5. The following numbers are common factors of 28 and 56 except?
A. 7
B. 14
C. 8
6. What is the Least Common Multiple (LCM) of 7 and 87
D.9
D. 28
A. 56
B. 68
C. 84
D. 146
7. What is the least common multiple of 6 and 147
A. 42
B.54
C.76
D.84
8. What is the least number of carpenters that an engineer must hire If he wants to
arrange them in groups of 4, 5, 6 with no left over?
A. 120
B.150
C.60
D.240
9. During a car race, two competitors will stop to fill up the fuel tank. One does it
every 4 laps, and the other every 5 laps. If they travel at the same speed, how
many laps will they meet again at the fuel station?
A. 16
B. 20
C.25
D. 30
10. What is the least common multiple (LCM) of 12 and 14?
A. 54
B. 68
C. 84
D. 146
please answer me please ​

Answers

Answer:65

Explanation:

Answer:

8

Explanation:

If interest rates are expected to decrease, the yield on new short-term securities may be expected to ________, and the yield curve should be ________ sloping.


a. Increase; downward.


b. Increase; upward.


c. Decrease; downward.


d. Decrease; upward

Answers

If interest rates are expected to decrease, the yield on new short-term securities may be expected to **decrease**, and the yield curve should be **upward** sloping.

When interest rates are anticipated to decrease, the yield on newly issued short-term securities typically follows this trend. As interest rates go down, the yield on new securities decreases to align with the prevailing lower rates.

An upward sloping yield curve is characteristic of a situation where longer-term securities have higher yields compared to shorter-term securities. This is often observed in times when interest rates are expected to decline, as investors may seek longer-term securities to lock in higher yields before rates decrease further.

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nancy was both nervous and excited about her phone call with a client. her enthusiasm was manifested in the phone call by fast and seemingly rushed talking. which of the following is the most likely reaction from the client? a - the client believed Nancy was late for an appointment
b - the client believed Nancy was distracted
c - the client thought Nancy was overly prepared
d - the client felt Nancy was enthusiastic about the phone call

Answers

The most likely reaction from the client when Nancy was both nervous and excited about her phone call with a client is that the client felt Nancy was enthusiastic about the phone call. Therefore, option D is correct.

What is Enthusiasm?

Enthusiasm is an intense emotion characterized by a powerful inclination or desire to engage in something. It may be sparked by someone, something, or an idea. Enthusiasm is frequently regarded as having a favorable attitude towards a person, subject, or task, and it is a crucial factor in personal and professional achievement. It is an essential aspect of motivation and is commonly associated with goal accomplishment.

In the question at hand, Nancy was both nervous and excited about her phone call with a client. Her enthusiasm was manifested in the phone call by fast and seemingly rushed talking. Therefore, it is most likely that the client felt Nancy was enthusiastic about the phone call.

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i need help answering theses

i need help answering theses

Answers

Answer:

I don't know what to be my adopted father and son are you kidding me I don't know what to say to be my adopted father and son are you kidding me

What do think about women getting less salary than men?

Answers

Answer:

You know in my opinion if this world was really considered fair than humans beings wouldn't be paid different just because of their gender, i'd say girls can pretty much do anything guys can do hands down. But in reality girls just never get their shot to prove instead we get paid less, treated differently, and judged.

What does it mean that service products are intangible to customers?
a. The service itself cannot simply be perceived by touch
b. All other answers are correct
c. Customers may find it hard to express their needs
d. As the service is intangible, the servicescape also influences customer perceptions

Answers

Customers commonly utilise inseparability as a key metric of service excellence because services are intangible and there may be few other indicators to assess them. The correct answer is a. The service itself cannot simply be perceived by touch.

Services are the ethereal, non-physical parts of our economy, as opposed to tangible things, which we can touch or handle. The vast majority of developed nations' economy are centred on services like banking, education, healthcare, etc. Additionally, they dominate the economies of emerging countries.

Customer service is the assistance provided to customers to make their interactions with you simple and enjoyable, both before and after they utilise your products or services. The Servicescape model was developed by Booms and Bitner to emphasise the importance of the physical environment in which an operational plan is carried out. In order to create environments that do not support organisational aims in terms of inciting desired behavioural reactions, the servicescapes model sets out to precisely define how people behave in service settings.

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The more employees can do, the less they have to be managed by supervisors.
True or false?

Answers

Answer:

true

Explanation:

The sentence - "The more employees can do, the less they have to be managed by supervisors" is true.

What is supervisors?

A supervisor, often known as a leader, is a lower-level management role with control over employees or a workplace. A supervisor can also be one of the most senior members of the organization's employees, such as a professor who monitors a PhD dissertation.

Customers are subjected to lengthy waits, while staff are left feeling disempowered if managers had lot to do than employees.  A second possible reason is an excessive number of supervisory levels. Unnecessary supervisors generate work while reducing efficiency and productivity. Companies frequently underestimate the true cost of all those supervisors.

Therefore, it can be concluded that above sentence is true.

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the question is in the picture, please help!!

the question is in the picture, please help!!

Answers

Justice of the peace court

Answer: At a trial in a U.S. District Court, witnesses give testimony and a judge or jury decides who is guilty or not guilty — or who is liable or not liable. The appellate courts do not retry cases or hear new evidence. They do not hear witnesses testify.

Explanation:

(b Who is likely to pay lower taxes for the same level of income : A homeowner who pays $ 1,000 per month on a mortgage loan or a renter who pays $ 1,000 a month in rent ?

Answers

Answer:

The renter

Explanation:

The renter will not be taxed as the property in which he or she is staying is not his or her ownership. The government of most of the nations see the renter as a marginalized individual in relation to a home owner. The homeowner have to pay the taxes on the propriety, however, there will be deduction on such payments. Hence the renter will pay a lower tax.

3 Points

Annabel and Presley have both invested money in savings accounts with

APYs of 2.4%. If Annabel's account has a balance of $15,000 and Presley's

account has a balance of $18,000, how much more interest does Presley earn

than Annabel?

O

A. $360

B. $792

C. $432

D. $72

SUBM

Answers

Answer:

D

Explanation:

Annual percentage yield is a form of interest that a savings account earns on a deposit in a year ,expressed as a rate of the deposit.

To calculate the difference in the interest earned as per the question , the interest yield by the two accounts are calculated and the differences also worked out.

Annual percentage yield = 2.4 %

Annabel's account balance = 15,000

Annual yield = 2.4% * 15,000 = 360

Presley's account balance = 18,000

Annual yield = 2.4% * 18000 = 432.

Difference = 432 -360 = 70

A healthcare organization with 2 hospitals, 20 clinics, and 3 urgent care centers belongs to an ACO program. They have been in the shared savings program for two years and are now eligible to move large payments to a population-based model as they have been successful in keeping costs down and have met all the CMS benchmarks set for them. What type of ACO is this

Answers

Answer:

Pioneer ACO Model

Explanation:

The Pioneer ACO Model refer to the cms innovation center where it designed to support the organization with experience or the similar arrangement that could provide more coordinated care at the lower cost Since in the given situation they are eligible and shift to the large kind of payment so that the cost can be come down also it mets the benchmarks of the CMS so here the pioneer ACO model could be considered

a broker developed a website to advertise the broker's office with the brokerage's name, location, and phone number. what additional information does the broker need to include?

Answers

Since the broker already add the brokerage's name, location, and phone number on the website to advertise the broker's office; then no need for any additional disclosures. The correct answer is option D.

What is a broker?

A broker is an individual or firm that acts as an intermediary between a buyer and a seller; or between an investor and a securities exchange, who buys and sells goods or assets for others. A broker can also refer to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.

There are 3 types of brokers, those are: Online brokers, a new form of digital investment which interacts with the customer on the internet; Discount brokers, a stockbroker who performs buy and sell orders at a reduced commission rate; and Full-service brokers.

Although part of your question is missing, you might be referring to this full question: A broker developed a website to advertise the broker's office with the brokerage's name, location, and phone number. What additional information does the broker need to include?

A. Name and address of the home office and the states in which the brokerage holds licenses

B. License number of the brokerage and list of current active licensees

C. Names of active licensees, addresses, and phone numbers

D. No need for any additional disclosures

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As with all managerial work, arts and
communication managerial work requires
which of the following?
A. previous experience
B. knowing someone in the industry
C. passion for the industry

Answers

C. Especially art is what they look for

Answer: it’s A previous experience

Below you will find the closing stock prices for eBay over a three-week period. Calculate the simple three-day and five-day moving averages for the stock. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)Date Close4/23/2012 $ 37.834/24/2012 37.654/25/2012 37.254/26/2012 37.514/27/2012 36.774/30/2012 36.945/1/2012 37.015/2/2012 37.055/3/2012 37.745/4/2012 37.845/7/2012 37.775/8/2012 37.935/9/2012 38.265/10/2012 38.415/11/2012 38.243-day 5-day4/23/2012 4/24/2012 4/25/2012 $ 4/26/2012 4/27/2012 $4/30/2012 5/1/2012 5/2/2012 5/3/2012 5/4/2012 5/7/2012 5/8/2012 5/9/2012 5/10/2012 5/11/2012

Answers

To calculate the simple three-day and five-day moving averages for eBay's stock prices, we add up the closing prices for the number of days in the moving average and divide by the number of days.

The simple three-day moving averages are:

April 25th: ($37.83 + $37.65 + $37.25) / 3 = $37.58

April 26th: ($37.65 + $37.25 + $37.51) / 3 = $37.47

April 27th: ($37.25 + $37.51 + $36.77) / 3 = $37.18

April 30th: ($37.51 + $36.77 + $36.94) / 3 = $37.07

May 1st: ($36.77 + $36.94 + $37.01) / 3 = $36.91

May 2nd: ($36.94 + $37.01 + $37.05) / 3 = $37.00

May 3rd: ($37.01 + $37.05 + $37.74) / 3 = $37.27

May 4th: ($37.05 + $37.74 + $37.84) / 3 = $37.54

May 7th: ($37.74 + $37.84 + $37.77) / 3 = $37.78

May 8th: ($37.84 + $37.77 + $37.93) / 3 = $37.85

May 9th: ($37.77 + $37.93 + $38.26) / 3 = $37.98

May 10th: ($37.93 + $38.26 + $38.41) / 3 = $38.20

May 11th: ($38.26 + $38.41 + $38.24) / 3 = $38.30

The simple five-day moving averages are:

April 27th: ($37.83 + $37.65 + $37.25 + $37.51 + $36.77) / 5 = $37.20

April 30th: ($37.65 + $37.25 + $37.51 + $36.77 + $36.94) / 5 = $37.14

May 1st: ($37.25 + $37.51 + $36.77 + $36.94 + $37.01) / 5 = $37.10

May 2nd: ($37.51 + $36.77 + $36.94 + $37.01 + $37.05) / 5 = $37.06

May 3rd: ($36.77 + $36.94 + $37.01 + $37.05 + $37.74) / 5 = $37.10

May 4th: ($36.94 + $37.01 + $37.05 + $37.74 + $37.84) / 5 = $37.32

May 7th: ($37.01 + $37.05 + $37.74 + $37.84 + $37.77) / 5 = $37.48

May 8th: ($37.05 + $37.74 + $37.84 + $37.77 + $37.93) / 5 = $37.87

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In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is?

Answers

In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is equal to the price. The additional money made from selling one more unit of output is known as marginal revenue. The formula is the total income change divided by the output or quantity change.

The price times the quantity determines total revenue, and since the price is fixed for each thing sold, the marginal revenue in a market with just competitive products is only the product's price. As a result, in a market where there is pure competition, demand equals both marginal and average revenues.

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Which of the following objects has the slowest moving molecules? F. fresh snowG. warm breadH. a melted ice cubeI. a hot cup of coffee bagaimana kedudukan bangsa di dalam organisasi nadhatul ulama? Unlike with domestic marketing, one of the key challenges of marketing globally is making sure that the marketing efforts meet the needs of the specific global marketwhat is also known as. Which is an example of an animal responding to an external stimulus?A. A dog growing a winter coat B. A cat drinking milk C. A mouse eating foodD. A person sleeping One way to decrease prejudice is to: force people to work together toward a common goal. make people experience stereotype threat. encourage people to rely on the just-world hypothesis. O give people individually challenging tasks. If the amount of air in a spherical balloon is 288 cu. in.,what is the radius of the balloon? fibrocartilage of a ______ resists compression and acts as a shock absorber. A vegetable patch has peppers and aubergines planted in it. The ratio of peppers to aubergines is 5:3. There are 480 vegetables in total. More peppers are planted so that the total number of peppers increases by 10 percent. What is the new ratio of peppers to aubergines in the vegetable patch? Give your answer in its simplest form Svetlana asks Dr. Miller for information related to Alzheimers disease. Dr. Miller decides to send Mary Ellen, an RMA, into the room to review a patient education brochure that discusses the progression of the disease. What information should this brochure include? Which of the following statements about modular design is accurate? Inventories of completed products will usually increase when modular design is implemented When something goes wrong with the excessive modular is usually the cause A single module includes all product functionality Modules may be combined in a number of ways to make a variety of end product configurations A long straight current wire is aligned at direction perpendicular to the page. It produces a magnetic field with its directions clockwise around the wire. The direction of the current should point to the right the left downward into the page out of the page upward simplify the like terms-2x\:+\:3y\:-\:3xy\:+2yz\:-\:3x^2y\:+5x\:-\:4y+3xy Drag each tile to the correct box.Determine the best type of savings fund or each situation.401(k)rainy-day fundsinking fundemergency fundmoney needed to start a businesspaying utility bills while unemployedunexpected plumbing expensesretirementResetNext 8.23x 37611419In0.51 When was the moon formed? What is the slope of a line that is perpendicular to the line y=2x+3? A total of $13,000 is invested in two accounts. One pays 7.5% simple interest and the other pays 8.5% simple interest. If the total interest earned from both accounts total $1,035 for one year. How much was invested in the account having 8.5% simple interest? Mr. Ophaug earns $100 every 2 hours for tutoring kids in math after school. He is willing to tutor up to 6 hours each week. Create a table of values for this scenario and find the rate of change. question 14: please help asap !!!! lex corporation is an expanding telecommunications company. however, they are in need of more computers for their new employees. which factor of production do the computers represent?