1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gre4nikov [31]
2 years ago
8

Match the factors to the target capital structure preferred.

Business
1 answer:
Paraphin [41]2 years ago
7 0

Answer:

See below ~

Explanation:

<u>Equity Capital Structure</u>

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

<u>Debt Capital Structure</u>

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
You might be interested in
Marshall-Miller &amp; 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

3 0
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:

<u>Market segmentation.</u>

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.

4 0
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:

Nita’s demand for Coca-Cola will be relatively more inelastic i.e his demand will not be sensitive to price. Increasing the price of Coca-cola will not make Nita to change its taste because he is a devoted Coca-Cola consumer.

Becky’s demand will be relatively more elastic because he has an option to choose between Pepsi and Coca-cola.

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

5 0
2 years ago
The constitutional authority of congress to forbid discrimination in employment is based in the
yan [13]
The constitutional authority of congress to forbid discrimination in employment is based on the <u>power of Congress to regulate interstate commerce. </u>
When it came to interstate commerce, there was no employment discrimination there - both men and women could work, regardless of the race and skin color. This was the basis on which the Congress managed to ban discrimination in employment elsewhere.

5 0
3 years ago
Other questions:
  • Why are both non excludability and non rivalry important elements of public goods?
    13·1 answer
  • How successful were the redeemers at using the "race card" to promote their agendas?
    6·1 answer
  • A health inspector wants to check compliance with a new city ordinance on meat storage. since he can only inspect 10 of the 33 s
    8·1 answer
  • Companies put promotion candidates through gatekeeper tests because _______.
    5·2 answers
  • the costs of running a business are called ___________. a. startup costs b. cash flow c. operating expenses d. fixed costs
    5·2 answers
  • According to the PCAOB, an accounting firm's independence is least likely to be impaired if the firm
    9·1 answer
  • The balance sheet of a corporation reports ______. only the debts of the business and its owners only the results of the busines
    14·1 answer
  • Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mo
    9·1 answer
  • Why would the federal reserve enact an easy money policy
    10·1 answer
  • What would be the expected rate of return for each company, according to the capital asset pricing model (capm)?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!