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Lapatulllka [165]
1 year ago
5

A company with high ebit is considering pursuing multiple projects next year. which trade-off is involved, and what is the ideal

credit rating for the company between aaa, aa, a, and bbb?
Business
1 answer:
strojnjashka [21]1 year ago
5 0

A company with high EBIT is considering pursuing multiple projects next year. The trade-off involved will be maximizing the number of projects against a higher credit rating, with an A rating being ideal. Thus the correct answer is D.

<h3>What is a trade-off?</h3>

The trade-off is referred as a situation when one object gets compromised to gain over another object. This situation comes when decision-making between two goods takes place and one will get selected over the other.

Increasing the number of projects is compromised for a superior credit rating. A strong credit rating won't be enough since more projects will require the business to heavily rely on financing. The A credit rating will be considered.

Therefore, option D is appropriate.

Learn more about trade-off, here:

brainly.com/question/10895386

#SPJ1

The complete question is-

A company with high EBIT is considering pursuing multiple projects next year. Which trade-off is involved, and what is the ideal credit rating for the company between AAA, AA, A, and BBB?

Select an answer:

The trade-off is only being able to pursue a few of the projects against a lower credit rating, with an AA rating being ideal.

The trade-off is pursuing more new projects against a lower WACC, with a AAA rating being ideal.

The trade-off is the risk of a credit downgrade against having few new projects, with a BBB rating as ideal.

The trade-off is maximizing the number of projects against a higher credit rating, with an A rating being ideal.

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Carla and Eliza share income equally. For the current year, the partnership net income is $40,000. Carla made withdrawals of $12
sveticcg [70]

Answer:

$54,000

Explanation:

Eliza's share of net income = $40,000 ÷ 2

                                             = $20,000

Eliza made withdrawals = $21,000

Eliza capital = $55,000

Eliza’s capital account balance at the end of the year:

= Eliza capital - Eliza withdrawals + Net income share of Eliza

= $55,000 - $21,000 + $20,000

= $54,000

Therefore, the Eliza’s capital account balance at the end of the year is $54,000.

8 0
3 years ago
Artisanâ Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company
aliina [53]

Answer:

206,000

Explanation:

Sales                                             = 590000  

- CGS                                           = 302000  

Gross profit                                                                       = 288,000

Less Operating Expenses:

Sellings and Admin expenses      = 67000  

Freight in                                  =     15000  

Total Operating expenses         =       82000  

Operating Income                                                               =         206,000

CGS = Beginning inventory + Purchases - Ending Inventory

CGS = 43,000 +302,000 - 43,000 = 302,000

5 0
3 years ago
In accordance with RESPA, whenever a buyer obtains a new first mortgage loan from a chartered or insured lender, when the loan i
Hoochie [10]

Answer:

A. 3 business days

Explanation:

In accordance with RESPA, whenever a buyer obtains a new first mortgage loan from a chartered or insured lender, when the loan is insured by the FHA or guaranteed by the VA, or when the loan will be sold to one of the federally related secondary mortgage market agencies, a good-faith estimate of the settlement costs must be provided by the lender within 3 business days.

5 0
3 years ago
Read 2 more answers
. January 1, 2002 you bought a coupon bond for $1102. You received a coupon of $50 on December 30 . On January 1, 2003, you sold
Natalka [10]

Answer:

-5.72%

Explanation:

Total rate of return = (Total return/net loss ÷ Purchase Price) × 100 ......... (1)

Loss on sales = Purchase price - Sales price = $1102 - $989 = $113.

Net loss = Coupon received - loss on sales = $50 - $113 = -$63

Substituting the values into equation (1), we have:

Total rate of return = ((-63) ÷ 1,102) × 100 = -5.72%

Therefore, the total rate of return is -5.72%. It is negative because the coupon bond led into net loss.

8 0
3 years ago
Read 2 more answers
What do consumers do after making a purchase?
anygoal [31]
Probably evaluate the purchase. Common sense here.
8 0
3 years ago
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