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schepotkina [342]
4 years ago
6

Although hargrove co. makes enough money to pay for everything it needs, it still chooses to have some debt and pay a larger por

tion of retained earnings back to the stockholders. what is likely the best explanation for this decision?
Business
1 answer:
lisov135 [29]4 years ago
6 0
The best explanation for this decision is "financial leverage".

Financial leverage refers to the amount of debt that is used by an entity to purchase more resources. Leverage is utilized to abstain from utilizing excessively value to support operations. An intemperate measure of money related use expands the danger of disappointment, since it turns out to be more hard to repay debt.
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Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service co
Leni [432]

Answer:

The maximum depreciation expense is $2,792

Explanation:

In order to calculate the maximum depreciation expense we would have to calculate the depreciation of service computer equipment and the service furniture as follows:

depreciation of service computer equipment=$15,500*5%

depreciation of service computer equipment=$775

depreciation of service furniture=$11,300*17.85%

depreciation of service furniture=$2,017

Therefore, maximum depreciation expense=depreciation of service computer equipment+depreciation of service furniture

maximum depreciation expense=$775+$2,017

maximum depreciation expense=$2,792

5 0
3 years ago
What are sources of income that can be used for debt service on municipal revenue bonds?
Zolol [24]

Answer:

Municipal Revenue bonds are bonds that are serviced from the income accrued from a project that the bond was used to embark on.

They can therefore be serviced by a variety of income methods that accrue from the projects such as;

  • User fees for using the asset built
  • Special taxes
  • Lease rentals in cases where the asset is leased out
  • Excise taxes
  • Other Non Ad-valorem taxes that result from benefits attached to usage of the asset built.

3 0
3 years ago
Which of the following is not a power of the president?
erastovalidia [21]
I think I found the following when I searched it on google. 
HistoryGuy says that the president can't <span>Vote to impeach a government official.</span>
5 0
3 years ago
Read 2 more answers
What are the pros and cons of the JIT Strategy in company’s operation ?
Fudgin [204]

Answer:

Just-in-time (JIT) inventory systems started in Japan in the 1970s and spread to the U.S. about a decade later. JIT is an inventory-management system that aims to help businesses have just enough inventory readily available to meet current demand while avoiding excess. There are many pros and cons for a small business to consider before adopting a JIT system.

4 0
3 years ago
In a free enterprise system the decisions about what and how many goods and services will be produced are made by?
snow_lady [41]

Answer:

Private individuals.

Explanation:

In a free enterprise system, the decisions about what and how many goods and services will be produced are made by private individuals.

Free enterprise system is an economic system in which the ownership and control of means of production (resources) and distribution of goods and services are determined by private individuals. Here, private individuals decide what, how and for whom to produce while the government does not interfere in economic activities. The allocation of resources and price determination are influenced by the forces of demand and supply called price mechanism, which Adam Smith referred to as 'Invisible Hand'.

Free enterprise system is also known as Capitalist economy, Capitalism and Free market system. Countries that practice more of free enterprise system are Singapore, New Zealand, Hong Kong, Australia and Switzerland.

5 0
3 years ago
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