Answer:
- Financial institutions, such as investment banks, provide expertise in the acquisition of funds.
- The investment banking institution will allow the Gaga Enterprises CFO to raise more money at a lower cost per dollar raised
Explanation:
In the given scenario we want to compare help in raising capital using a financial institution versus raising it directly in the financial markets.
When raising capital using financial markets it is more expensive because the company will need to give out ownership rights in the company when they sell shares.
However when financial institutions provide the capital, there is a lower cost per dollar raised compared to sale of shares.
Also financial institutions act as financial advisors to their clients. So they will provide expertise in the acquisition of funds.
Answer: $13,020,000
Explanation:
Given that,
Tax rate = 30%
Total interest payment for the year just ended = $43,400,000
Interest Tax Shield = Tax rate × Total interest payment
= 30% × $43,400,000
= 0.30 × $43,400,000
= $13,020,000
Therefore, the interest tax shield is $13,020,000.
Answer: 21000
Explanation:
Direct materials inventory desired = 6,000
Purchase of direct materials budgeted = 5000
Pounds needed for production = 5000 × 4 = 20000
The number of pounds in Salter's beginning direct materials inventory on January 1 will be:
= Direct materials inventory desired + Pounds needed for production -
Purchase of direct materials budgeted
= 6000 + 20000 - 5000
= 21000 pounds
Answer:
Whistle blowing
Explanation:
Whistle blowing is the way in which employees in a work place can anonymously report action of wrong doing by their colleagues.
The action reported can be illegal, wasteful, unsafe, fraud, or illicit.
The whistle blower's identity is protected by law so they feel safe coming forward to make these statements.
In the given scenario where a healthcare worker anonymously reports through his organization's Corporate hotline that coworkers are steeling supplies and taking them home for their own use, the worker is a whistle blower
Answer:
The market mechanism
Explanation:
This is where demand meets supply and a price is agreed
