Complete Question:
Which one of the following is not empirically correct?
A. Debt levels across industries vary widely
B. Debt ratios in most countries are considerably less than 100 percent.
C. Some firms use no debt.
D. Capital structures are fairly constant across industries.
E. Most corporations have relatively low debt-asset ratios.
Answer:
The not empirically correct statement is:
D. Capital structures are fairly constant across industries.
Explanation:
Instead, the capital structures across industries vary significantly. Firms with large asset investments tend to have more leverage than others with less asset investments. And this situation of having or not having large investments in assets cuts across firms in the same industry. This suggests that their capital structures will always vary not because of the industry but the choices made by the firm's management. Capital structures are also influenced by taxes and operating income uncertainties, which also vary within the same industry.
Answer: 4.72%
Explanation:
Given: Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 4.30 percent
i.e. dividend = 4.30%
Price of a share = $91.18
Since, the cost of the company's preferred stock = (dividend) ÷ (Price of a share ) x 100
= (4.3) ÷ ($91.18) x 100
= 0.0472 x 100
= 4.72%
Hence, the cost of the company's preferred stock = 4.72%
When the firm cuts its dividend ratio, the earnings retention ratio will increase.
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Explanation:
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The retention ratio is the extent of profit held back in the business as held income. It is something contrary to the payout proportion, which gauges the level of benefit delivered out to investors as profits.
The maintenance proportion is additionally called the plowback proportion. Held benefit is the benefit stayed within the instead of paid out to investors as a profit. Held benefit is broadly viewed as the most significant long haul wellspring of fund for a business
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Selling price=200 per unit
CM ratio =0.25
Fixed expenses=43000
target profit=0.2
Dollar sales to attain target profit=X
X=(0.2X+43000)÷0.25
Cross multiplication
0.25X=0.2X+43000
Solve for X
0.25X-0.2X=43000
0.05X=43000
X=43000/0.05
X=860000
Unit sales=Dollar sales÷selling price
Unit sales=860,000÷200
Unit sales=4,300 units. ...answer
Answer:
A) Apple
Explanation:
Price elasticity describes how sensitive the demand for a product is a result of a change in price. A product is price elastic if a small change in price causes a big difference in its demand. A Product is price inelastic if a change in price does not create a significant change in its demand.
Apples will be more price elastic. Apple is fruit has may alternatives. As a fruit, apple competes with many others. A small increase in price will make consumers consider other fruits. If the price decreases, then the demand is likely to rise.
Water and gasoline are necessary goods. We need them for survival. An increase or decrease in price will have minimal changes in demand. Jewellery are luxury goods. They are bought for their value and worth. Changes in price will not affect their demand.