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2 years ago

Match the factors to the target capital structure preferred.

Business

1 answer:

Paraphin [41]2 years ago

7 0

Answer:

See below ~

Explanation:

Equity Capital Structure

Equity capital refers to the money owed by the owners or shareholders of the company.

Fast growing companies like software
Businesses in the growth stage
Companies with high growth rate or credibility
Companies not in a position to provide collateral

Debt Capital Structure

Debt capital in the capital structure of the company refers to the borrowed money at work.

Managers with conservative management style
Companies want to show high credit rating

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Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of

vlabodo [156]

Answer:

$10,620

Explanation:

Depreciation for Year 1 = 0.202 × $50,000

= $10,100

Depreciation for Year 2 = 0.323 × $50,000

= $16,150

Depreciation for Year 3 = 0.194 × $50,000

= $9,700

Depreciation for Year 4 = 0.125 × $50,000

= $6,250

Accumulated depreciation = $10,100 + $16,150 + $9,700 + $6,250

= $42,200

Book value of machine as on date of sale:

= Purchase price - Accumulated depreciation

= $50,000 - $42,200

= $7,800

Selling price = $12,500

Gain on sale of machine = $12,500 - $7,800

= $4,700

Tax rate = 40%

Tax on capital gain = $4,700 × 0.40

= $1,880

Net proceeds on sale of machine:

= Selling price – Tax paid on capital gain

= $12,500 - $1,880

= $10,620

8 0

3 years ago

Paradise Travels is an all-equity firm that has 6,000 shares of stock outstanding at a market price of $34 a share. The firm's m

xenn [34]

Answer:

$2.38

Explanation:

Number of shares purchased

= $40,000 / $34

= $1,176

EBIT / 6,000 = [EBIT - ($40,000 * 0.07)] / (6,000 - 1176)

EBIT / 6,000 = (EBIT - $2,800) / 4,824

4,824 EBIT = 6000 EBIT - $16,800,000

1,176 EBIT = $16,800,000

EBIT = $14,285.71

Earning per Shares at Break-even level of earning

= [EBIT - ($40,000 * 0.07)] / (6,000 - 1,176)

= ($14,285.71 - $2,800) / 4,824

= $11,485.71 / 4,824

= $2.38

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2 years ago

Fast Fine Foods markets some of its products to consumers looking for simple, quick meals. Fast Fine Foods also offers another l

wlad13 [49]

Answer:

Market segmentation.

Explanation:

Market segmentation is a process used by an organization that divides its potential customer according to tastes, needs and characteristics and similarities between customer groups, with the aim of directing the marketing strategy and product line to each customer group. identify their particularities to meet their own needs more effectively.

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3 years ago

Read 2 more answers

Nita is a devoted Coca-Cola consumer, whereas Becky can drink either Coca-Cola or Pepsi products. Nita’s demand for Coca-Cola wi

mafiozo [28]

Answer:

The answer is:

Inelastic

Elastic

Explanation:

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Any increase in price of Coca-cola will make Becky to shift to Pepsi.

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2 years ago

The constitutional authority of congress to forbid discrimination in employment is based in the

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The constitutional authority of congress to forbid discrimination in employment is based on the power of Congress to regulate interstate commerce. 
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3 years ago