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1 year ago

All else constant, the weighted average cost of capital for a risky, levered firm will decrease if:__________

1 answer:

4 0

All else constant, the weighted average cost of capital for a risky, levered firm will decrease if Increase in the outstanding debt of the company's yield to maturity Decrease in the tax rate of the company.

<h3>How does preferred stock affect the weighted average cost of capital?</h3>

Preferred stock, one of the equity forms, can be issued to lower a company's cost of capital because it is less expensive than common stock. Average Weighted Cost of Capital The weighted average cost of capital, or WACC, is one of the core ideas in corporate finance.

<h3>How much does preferred stock cost?</h3>

The Weighted Average Cost of Capital is also computed using the price of preferred shares. The Weighted Average Cost of Capital (WACC) of a company is a measure of its blended cost of capital, which includes equity and debt.

<h3>The weighted average cost of capital is influenced by what outside variables?</h3>

Corporate tax rates, the state of the economy, and market circumstances are some other outside variables that might impact WACC. The average after-tax cost of a company's multiple capital sources is known as the weighted average cost of capital (WACC). It consists of bonds, other debt, common stock, and preferred stock.

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Say you are grocery shopping and you come across an item for which the unit price is not labeled. How can you find the

ki77a [65]

Find a convenient and reasonable unit of measurement to use, then divide the cost of the package by the number of units chosen in that package.

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3 years ago

Anne is a full-time student at UCLA buts works part-time as a waitress at a diner near her dormitory. She earns an hourly wage b

miss Akunina [59]

Answer:

In California, if the tip is included in the service charge, Anne's employer must pay taxes for them. The employer is required to pay for these taxes in California, not the employee. Even though tips are not part of an employee's wage, they are still taxable. This means that Anne must include the $51 in her AGI.

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3 years ago

Nancy just graduated with her B.A. in marketing. Her long-term goal is to run a social media department for a large company. She

den301095 [7]

Answer:

b. Yes, because she will build social media skills.

Explanation:

In this scenario Nancy's long term goal is to manage a social media department of a large company. She now hot an internship as a social media assistant in a small company.

The internship that she is undertaking bin the short run is relevant to the her long term career goal of managing a social media department in a large firm.

So this is a stepping stone in achieving her long term goal.

In the future when a social media opening comes up she will have the relevant experience to perform in this role.

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3 years ago

Read 2 more answers

The corporate charter of Martin Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D

Mrrafil [7]

The question is incomplete. Here is the complete question

The corporate charter of Martin Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. During its first three years of operation, Martin issued 3,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions:

a. How many shares authorized?

b. How many shares were issued?

c. How many shares are outstanding?

d. What is the balance of the Common Stock account?

e. What is the balance of the Treasury Stock account?

Answer:

(a) 4,000,000 shares

(b) 3,200,000 shares

(d) $3,200,000

(e) $750,000

Explanation:

(A) Number of shares that was authorized is 4,000,000

(B) Number of shares that was issued is 3,200,000

= number of shares issued-acquired shares in the treasury stock

= 3,200,000-30,000

= 3,170,000

(D) The balance of common stock account can be calculated as follows

= number of shares that was issued-per value

= 3,200,000×$1

= $3,200,000

(E) The balance of the treasury stock account can be calculated as follows

= acquired shares in the treasury stock×price per share

= 30,000×$25

= $750,000

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3 years ago

A will is the final declaration of how a person desires to have her or his property disposed of after death and must follow exac

Aleksandr-060686 [28]

Answer:

The above statement is<u> true</u>.

Explanation:

As said in above statement , A will is the final declaration of how person desires to have her or his property disposed of after death and must follow exactly the requirements of state law to be effective. A will is good , as it express your feelings , that to whom you want to give your property after your death . It is always provided to that person you choose.

It protect your children from become homeless after your death. It also protect your property from being contested. A will is only valid if it is having number of years after the persons death.

A will should not include future plans, gifts and request , life insurance etc.

8 0

3 years ago