The MM Theory with taxes implies that firms should issue maximum debt. In practice, this is not true because Bankruptcy is a disadvantage to debt.
The Modigliani-Miller theorem states that a firm's capital structure does not affect its value. The theorem states that market value is determined by the present value of future earnings. This theorem has been influential since it was introduced in the 1950s.
Full market investors can borrow for the same cost as they lend and invest rationally. It is also implied that the process has no transaction costs.
The mm theorem states that a company's capital structure is not a factor in its value. The theorem states that market value is determined by the present value of future earnings. This theorem has been influential since it was introduced in the 1950s.
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The knowledge that company officers have over their assigned personnel will include:
- Duty assignments.
- Promotions.
- Retention.
- Performance evaluations.
- Duty exchange.
- Leave (vacation, sick, and wellness).
- Substance abuse.
- Absenteeism
<h3>What knowledge will company officers hold?</h3>
Company officers will be expected to directly interact with the personnel under them.
To do this, they are to have knowledge of certain things such as performance evaluations, substance abuse, and duty assignments. This would help them direct personnel better.
Options for this question are:
- Duty assignments.
- Promotions.
- Retention.
- Performance evaluations.
- Duty exchange.
- Leave (vacation, sick, and wellness).
- Substance abuse.
- Absenteeism
- All of the above.
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Answer:
Effect on income= $40,275 increase
Explanation:
Giving the following information:
The Clyde Corporation's variable expenses are 25% of sales.
Increase in fixed costs= $18,900
Increase on income= $78,900
T<u>o calculate the effect on income, we need to use the following formula:</u>
Effect on income= increase in contribution margin - increase in fixed costs
Effect on income= (78,900*0.75) - 18,900
Effect on income= $40,275 increase