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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

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To be effective, your goals must be balanced in the following areas:a. Career, Fun, Health, Relationship, Spiritualityb. Environ
sweet-ann [11.9K]

Answer:

Career , Financial , Health and Fitness, Relationships, Spirituality

Explanation:

Goals are what one plan to achieve within a specified period of time. Goal could be short term , usually one year or long term goal, which is more than a year. People that want to succeed must set goals because setting goal gives direction. When people set goals, it gives them the opportunity to work harder towards achieving that goal and also provides benchmark for determining if one is actually succeeding or on the right path.

People set goals on daily basis. The question is; how effective are those goals. It therefore means that for a goal to be effective, it must touch or cover the following areas ; career, financial, health and fitness, relationships, spirituality.

6 0
3 years ago
Recall Little’s Law that relates the 3 most important process measures (average inventory, average flow rate, and average flow t
Anna11 [10]

Answer: 0.15 years

Explanation:

According to Little's Law, it should be noted that:

I = R × T

where,

I = amount of flow units

R = rate of processing flow units

T = time

For this question,

I = $45 million

R = $300 million

Time will be:

T = I/R

T = 45/300

T = 0.15 years

Therefore, the account receivable process will use an average of 0.15 years.

7 0
3 years ago
Jasper Company provided the following information for last year:
sdas [7]

Answer:                        

Explanation:

1.                                     Jasper Company

                                      Income Statement

                                                                                         

            Sales (280000 x $12)                                  $3360000

            <u>Less: Cost of goods sold</u>

            Add: Direct Material                   $180000

            Add: Direct Labor                       $505000

            Add: Manufacturing Overhead  <u>$110000</u>

            Cost of goods sold                                      <u>($795000)</u>

            Gross Profit                                                  $ 2565000

           <u>Less: Expenses</u>

           Selling expense                           $437000

           Administrative expense              <u>$854000</u>

          Total expenses                                               <u>($1291000)</u>

          Net income                                                     <u> $1274000</u>

Percentage of sales for each line item

Sales = 100%

Cost of goods sold: \frac{795000}{3360000} x 100= 23.7%

Selling expense : \frac{437000}{3360000} x 100 = 13%

Administrative expense: \frac{854000}{3360000} x 100 = 25.4 %

2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.

Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.

7 0
3 years ago
Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the f
Alisiya [41]

Answer:

D)

Explanation:

D) identify and evaluate opportunities by conducting segmentation, targeting, and opositioning analysis.

5 0
3 years ago
Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In o
Zigmanuir [339]

Answer:

The scientist are looking to offer shares of stock to general public to raise some funds.

Explanation:

The seed scientist are looking to offer shares of stock of their company to genera public to raise some funds , so that they can expand the distribution of their product . Arborview plant science company will first time offer their shares to the public, so this process is called initial public offering and by doing this they will get funds from investor in return for part of ownership in the company.

3 0
3 years ago
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