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djverab [1.8K]
2 years ago
9

Typically, the firms' lowest cost source of financing is ____________ as its cost is tax deductible and it also tends to offer t

he least amount of risk for investors. Group of answer choices Debt Preferred Equity Derivatives Common Equity Equity
Business
1 answer:
Finger [1]2 years ago
6 0

Answer:

Debt

Explanation:

Debt is the lowest cost source of financing because the <em>interest</em> return given to holders of debt has a <em>tax shield</em> (tax deductible) that is provided by the Section 11j  of the Income tax Act.

The other sources of finance give a return in form of <em>dividends</em>. Dividends are are not tax deductible hence they attract a huge cost.

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In order to produce 100 pairs of oven gloves, Marcia incurs an average total cost of $2.50 per pair. Marcia’s marginal cost is c
anygoal [31]

Answer:

option (d) $200.00

Explanation:

Average total cost for 100 pairs = $2.50

Marginal cost for every pair = $10.00

Now,

Total cost = Fixed cost + Variable cost

or

Fixed cost = Total cost - variable cost

or

Fixed cost = (Average total cost × 100) - (Marginal cost × 100)

= ($2.5 × 100) - ($1 × 100)  

= $250 - $100  

= $150

thus,

Total cost to produce 50 pairs of oven gloves

= fixed cost + variable cost

= $150 + (50 × $1)

= $150 + $50

= $200

Hence,

option (d) $200.00

6 0
3 years ago
A private not-for-profit entity receives three large cash donations: One gift of $71,000 is restricted by the donor so that it c
Masteriza [31]

Answer: $294,000

Explanation:

Gift of $71,000 is <u>time restricted</u> as it cannot be spent for 4 years.

Gift of $91,000 is <u>purpose restricted</u> as it must be used for the purpose of salaries.

Gift of $121,000 is <u>permanently restricted</u> as it must be held forever.

Income earned from the above gift of $11,000 is <u>purpose restricted</u> for needy families.

The gifts with donor restrictions total:

= 71,000 + 91,000 + 121,000 + 11,000

= $294,000

3 0
2 years ago
When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when A. a customer’s accou
MaRussiya [10]

Answer:

Option D. management estimates the amount of uncollectibles

Explanation:

When the company estimates the bad debts, reflects it in the balance sheet through a Debit entry in the Bad Debt Expenses againts the asset account Allowance for Doubtful Accounts as a Credit.

When the bad debt are confirm as uncollectible the loss is reflected in the Account Receivable as a Credit with the correspondent debit entry in the Allowance for Doubtful Accounts.    

7 0
3 years ago
Managing economic exposure is generally perceived to be ____ managing transaction exposure. a. more difficult than b. less diffi
Anit [1.1K]

Answer:

the correct answer is a. more difficult than

Explanation:

Unlike Transaction exposure, economic exposure is difficult to predict and difficult to mitigate in an event of occurence, thus making it harder to manage than transaction exposure.

This is mainly because economic exposure can happen due to various macro economic factors and international political incidents.

6 0
2 years ago
Read 2 more answers
Demand for individual products can be driven by product life cycles. <br> a. True <br> b. False
Ray Of Light [21]
True djtvfegjuthbggh
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3 years ago
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