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
prohojiy [21]
1 year ago
6

If the cost of debt is the lowest choice among financing options, would increasing our percentage of debt always reduce our cost

of capital? why or why not?
Business
1 answer:
kenny6666 [7]1 year ago
6 0

The coat of Capital is calculated by taking the weighted average cost of all sources of Capital.Given that if the cost of Debt is the lowest choice among financing options then it will definitely reduce our cost of capital. Therefore the above statement is true because an Increase in low-cost options will also reduce a firm overall cost of capital.

A liability is an obligation by one party, the debtor, to require payment of money or other agreed-upon value to another party, the creditor. An obligation is a deferred payment or series of payments, distinguished from an outright purchase. Debts may be owed by sovereign states or countries, local governments, corporations, or individuals.

Commercial debt is generally subject to contractual terms regarding the amount and timing of principal and interest repayments[1]. Loans, bonds, bonds, and mortgages are all types of liabilities. In financial accounting, liabilities are a type of financial transaction rather than equity. The obligation is a debt to a society of criminals who owe them a debt of gratitude that cannot pay their debt.

Learn more about Debt here

brainly.com/question/24871617

#SPJ4

You might be interested in
Employees covered by the overtime provisions of the Fair Labor Standards Act are labeled a. nonexempt employees. b. salaried wor
Whitepunk [10]

Employees covered by the overtime provisions of the Fair Labor Standards Act are labelled as nonexempt employees.

Non-exempt employees are covered by statutory laws and are required to be paid the minimum wage in accordance with the legislation. The requirement of 40 hours of work each week should be used to compute these benefits on an hourly basis. Most of the jobs in this category are probably not management ones.

Non-exempt employees are not exempt from overtime pay and must be paid 1.5 times their regular hourly rate when working overtime. Non-exempt employees often earn less than this amount, but not always as state-specific criteria can vary.

Learn more about non-exempt employees here:

brainly.com/question/15995540

#SPJ1

7 0
2 years ago
The 2012 box office receipts for the movie The Avengers were $1,515.8 million. By way of comparison, the 1977 receipts for Star
nalin [4]

Answer: b. The real receipts of Star Wars were nearly two times greater than those for The Avengers.

Explanation:

Real reciept = (Dollar amount) ×( Ending-period CPI) ÷ (Beginning-period CPI)

Here, Receipt for Avengers in 2012 = $1,515.8 million

Receipt for Star wars in 1977 = $798.0 million

CPI in 2012 = 229.6

CPI in 1977 = 606

Now, Real receipt of Star wars in 2012 = $((798.0) × (229.6) ÷ 60.6)

=$ 3023.45 ≈ Twice  of receipt for Avengers in 2012.

<em>[Twice of receipt for Avengers in 2012 = $3031.6]</em>

<em />

Hence, the correct statement is b."The real receipts of Star Wars were nearly two times greater than those for The Avengers."

7 0
3 years ago
List three advantages of buying an existing business
Solnce55 [7]
Buying an established business means immediate cash flow. The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors. You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.

Buying a business is generally considered less risky than starting your own business, especially if you can buy a well-managed, profitable business for the right price. Consider these advantages:

The difficult start-up work has already been done. The business should have plans and procedures in place.
Buying an established business means immediate cash flow.
The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors.
You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.
A market for your product or service is already established.
Existing employees and managers will have experience they can share.

8 0
2 years ago
A borrower sued a foreclosure consultant for violating the mortgage foreclosure consultant law. the borrower may receive actual
lesya692 [45]

The borrower may be awarded real losses, legal expenses, and, in extreme situations, the credit may be extended.

<h3>What is foreclosure consultant?</h3>

A person who stops the sale of foreclosure is called as  foreclosure consultant. He, directly or indirectly, makes a solicitation, representation, or offer to an owner to perform for the act of foreclosure.

A borrower filed a lawsuit against a foreclosure consultant for breaking the mortgage foreclosure consultant legislation. The borrower may be awarded actual damages, legal charges, and credit may be extended in exceptional cases.

Therefore, it can be concluded that credit expansion can be done in some of the cases for violating the mortgage.

Learn more about mortgage here:

brainly.com/question/13447700

#SPJ4

6 0
1 year ago
The total consumer surplus for good X can be calculated in all ways EXCEPT as:
Oliga [24]

Answer:

B.  the area bounded by the demand curve for X and the two axes

Explanation:

5 0
2 years ago
Other questions:
  • Marcus volunteers for an organization that cleans up
    12·2 answers
  • Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________. a. minimum
    10·1 answer
  • An entrepreneur who is green focuses on
    11·1 answer
  • The Mixing Department of Tasty Foods has 50,000 equivalent units of materials and 36,000 equivalent units of conversion costs fo
    13·1 answer
  • The ups store's advertising "what brown can do for you" whiteboard campaign tells business consumers that when it comes to getti
    6·1 answer
  • Suppose that an investor with a 5-year investment horizon is considering purchasing a 7-year 9% coupon bond selling at par. The
    6·1 answer
  • Coal Train Mines paid $435000 for the right to extract ore from a 225000​-ton mineral deposit. In addition to the purchase​ pric
    15·1 answer
  • The wages paid to milkshake makers increases. Does the supply curve for milkshakes shift? If so, does it shift to the right or t
    12·1 answer
  • International Data Systems' information on revenue and costs is relevant only up to a sales volume of 121,000 units. After 121,0
    9·1 answer
  • The Environmental Protection Agency is responsible for which of the following? (Check all that apply)
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!