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3 years ago

Which of the following statements is CORRECT?

Business

1 answer:

vovikov84 [41]3 years ago

5 0

Answer:

Suppose a firm has been losing money and thus is not paying taxes, and this situation is expected to persist into the foreseeable future. In this case, the firm’s before-tax and after-tax costs of debt for purposes of calculating the WACC will both be equal to the interest rate on the firm’s currently outstanding debt, provided that debt was issued during the past 5 years.

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Sandy is a personal financial planner at Pro-Future, Inc. Pro-Future is a financial company that focuses on personal and busines

amid [387]

Answer:

d. The higher the risk, the lower the possible investment.

Explanation:

With regards to speculation, hazard can be characterized as the changeability of return. the contrast between real result and expected result can be called as hazard. In the given model, Sandy think about that there is a positive connection between the likelihood of hazard and returns. for example on the off chance that there is high hazard, the likelihood of getting returns is high. in the event that there is less hazard, the likelihood of getting returns is low.

Right now, likes to go with if the higher the hazard, the lower the potential ventures, in light of the fact that the inconstancy of profits is high. Means the financial specialist could conceivably get the profits, consequently they may like to go with certain and ensured returns than dubious more significant yields. In the region of ventures it is a typical inquiry to all, some may go with higher the hazard the lower the conceivable speculation.

Henceforth, the appropriate response is option D.

In the event that an announcement is there that the higher the hazard, the bigger the potential returns, it doesn't imply that the speculator gets more significant yields with his ventures. the odds are there to get more significant yields simultaneously there are a few issues moreover.

8 0

3 years ago

Dream, Inc., has debt outstanding with a face value of $6 million. The value of the firm if it were entirely financed by equity

Deffense [45]

Answer:

$650,000

Explanation:

For computing the decrease in the expected bankruptcy costs, first we have to determine the total firm value in each case which is shown below:

Total firm value = Equity + Debt × corporate tax rate

= $17,850,000 + $6,000,000 × 0.35

= $17,850,000 + $2,100,000

= $19,950,000

Now the total firm value based on market share

= Equity + Debt

= 350,000 shares × $38 + $6,000,000

= $13,300,000 + $6,000,000

= $19,300,000

The difference would be

= $19,950,000 million - $19,300,000

= $650,000

5 0

2 years ago

Frank and lillian gilbreth developed the principle of _________, which said that every job could be broken down into a series of

Lady bird [3.3K]

Frank and lillian gilbreth developed the principle of motion economy, which said that every job could be broken down into a series of elementary motions. The motion economy has principles that are in place to improve the manual work within a manufacturng career field. These are to help a manufacturer worker not be exhausted so quickly and reduce the trauma that may occur within this career field.

3 0

3 years ago

On June 1, $50,000 of treasury bonds were purchased between interest dates. The broker commission was $500. The bonds pay intere

timurjin [86]

Answer:

$50,500

Explanation:

The investment treasury bonds account must be debited by $50,500 which includes the face value of the bonds ($50,000) and the broker's commission ($500). Investment accounts only record the purchase price of the bonds, they do not record any accrued interests.

4 0

3 years ago

A department adds raw materials to a Process at the beginning of the process and incurs conversion costs uniformly throughout th

Natasha_Volkova [10]

Answer: c. 78,000 equivalent units.

Explanation:

Equivalent units for conversion is calculated as:

= Units completed and transferred out + Equivalent ending work in process

Units completed and transferred out:

= Units started into production - Ending units

= 90,000 - 20,000

= 70,000 units

Equivalent ending work in process = 40% * 20,000 work in process units

= 8,000 units

Equivalent units for conversion = 70,000 + 8,000

= 78,000 units

7 0

3 years ago