Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
Thanks!
Answer:
<em>Value $ 256,250</em>
<em>rounding against nearest 1,000 dollar: 256,000</em>
<em />
Explanation:
From the gross income we subtract the expenses and vanacy losses.
40,000 gross income - 3,500 vacancy - 16,000 operating expense
20,500 net
<em />
Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%
$ 20,500 / 0.08 = <em>$ 256,250</em>
Answer:
A. True
Explanation:
For her it is a specialty good because it not sold everywhere, therefore she makes the extra effort.
Answer:
Letter A is correct. <em>Data warehouse.</em>
Explanation:
Data warehouse acts as a digital data warehouse of the company, whose main purpose is to store relevant information about the organization so that through history it can provide reports that help the company in the decision making process according to the facts found.
The biggest benefits found in the database system are greater flexibility and control of information and research, and the creation of standards that correct data and coordinate and optimize system data to ensure greater effectiveness.
The answer is
D. Debit Cash $2,000; debit Equipment $4,000; credit Nathan’s Capital $6,000