The more firms get from obligation as opposed to issuing stocks, the more it can diminish the aggregate cost of capital in light of the fact that the enthusiasm from obligation is duty deductible which will help reduce the aggregate cost of capital. In any case, no firm can get from obligation everlastingly in light of the fact that, at one point in time, extra obligation financing will make the aggregate cost of capital increment rather than decline. So firms will get in view of their own enhanced capital structure to limit the aggregate cost of capital however much as could reasonably be expected. Also, in light of this upgraded capital structure, there is a point of confinement to how much a firm can keep getting from obligation.
Answer:
(A) $1,655,500
(B) $5.52 per share
Explanation:
Ecker company announced a net income of $1,925,000
They also declare a cash dividend of $269,500
The company has 300,000 weighted average shares of common stock
(A) The amount of net income available to common stockhloders for 2017 can be calculated as follows
Net income available to common stockhloders= Net income- Preferred Cash dividend
= $1,925,000-$269,500
= $1,655,500
(B) The common basic EPS for 2017 can be calculated as follows
Common basic EPS= Net income available to stockholders/weighted average outstanding shares
= $1,655,500/300,000
= $5.52 per share
Answer:
Option (A)
Explanation:
If a corporation is found guilty of committed a crime. Then the corporation likely to face a hefty fines for committing a crime. This means the owners of the corporation and its stake holders are responsible for this crime if any of the employee of the corporation commits a crime. Hence at last the owners of the corporation and the stake holders are end up being punished.
Answer: option C
Explanation: THIS CAN BE REPRESENTED AS FOLLOWS :-
If we eliminate the product there would be no sales, no variable expenses and therefore, no contribution.
sales = nil
-variable expenses= <u>nil</u>
contribution = nil
- fixed expenses = <u>56,000</u>
NET LOSS = <u> (56000)</u>
.
NOTE :-
Fixed expense = (140,000)*(40%)= 56,000
.
.
Thus increase in loss would be 56000- 50,000=6000
Answer:
Modified Internal Rate of Return (MIRR) is higher than the discount rate. Therefore, this offer should be accepted.
Explanation:
Find the given attachment
