Answer:
The correct answer is D. The Tradeoff Theory suggests that a firm should choose a debt level where the tax savings from increasing leverage are just offset by the increased probability of incurring the costs of financial distress.
Explanation:
The trade-off theory of capital structure states that companies choose their leverage ratio to maximize benefits and minimize costs. The classic version of the hypothesis goes back to Kraus and Litzenberg, who observed a balance between the risk of loss of welfare from impending bankruptcy and the tax benefits of outside capital. In the trade-off theory, debt and equity financing are calculated in such a way that the present value of the tax shield is as large as possible and the present value of the costs of “financial distress” is possibly small.
Answer:
standing plans
Explanation:
Standing plans -
It refers to the programs , process or policies m which enables the project or business function to run smoothly , is referred to as standing plans .
The standing plans are initially made and then are modified according to the scenario and needs .
Hence , from the given information of the question ,
The correct term is standing plans .
Answer:
B) risen 25 percent.
Explanation:
The inflation rate is the rate at which overall prices are increasing in the economy in a period. It is expressed as a CPI value.
Given CPI for different periods, inflation can be calculated using the formula below.
Inflation =<u> new CPI - old CPI</u> x 100
old CPI
In the case
The inflation rate will be <u>150- 120</u> x 100
120
=30/120 x 100
=25%
D. income segmentation
The packaging for the laundry detergent is being improved upon for the benefit of “low-income consumers” and “tight budget” students. Therefore, the answer would be relative to income.
