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Setler [38]
4 years ago
6

Which of the following factors influence the estimate of a business’s optimal capital structure? (A) The amount of business (inh

erent) risk.(B) Lender/rating agency attitudes.(C) Industry averages.(D) The need to maintain financial flexibility (reserve borrowing capacity).(E) All of these factors influence the estimate.
Business
1 answer:
makkiz [27]4 years ago
3 0

Answer: Option E

Explanation:

A. If the inherent risk is high,company will go for equity capital and will avoid debt and preference capital. Thus inherent risk affects capital structure.

B. If the rating of the company is high as per famous rating agencies opinion then company can avoid equity and preference, the company can go for debt then. Thus rating affects capital structure.

C. The industry average tells the operational risk in the firms thus with high operational risk company can go for equity and preference.

D. If a company wants financial flexibility it should use debentures as it can be repurchased easily and should avoid equity .  Thus financial flexibility affects capital structure.

Therefore, all of the factors mentioned affects the decision making regarding the capital structure.

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Gilbert, an HR manager at MaxNet Inc., hires 50 employees in five months. He used different sources of recruitment to recruit th
sergey [27]

Answer:

Cost per hire.

Explanation:

Gilbert, an HR manager at MaxNet Inc., hires 50 employees in five months. He used different sources of recruitment to recruit these employees. He wants to know which kind of source delivered the most new hires for the money. To answer that question, Herbert should determine the <u>Cost per hire</u>.

Cost per hire: It is a metric used by company to know the cost incurred in hiring per employee. It include all expense in recruiting employee, like travel cost, equipment cost, administrative expense, advertisement expense etc. Later comparing the cost per hire with the benefit per employee to the organization.

In the given case, If Herbert determine cost per hire of an organization help in knowing which kind of source of recruitment delivered the most new hires for the money.

4 0
3 years ago
The condensed product-line income statement for Dish N' Dat Company for the month of March is as follows:
gladu [14]

Answer:

It will generate a financial disadvantage for 44,065 dollar to discontinued the cup division. This division generates a positive contribution which, if discontinued will not help to absorp the common fixed cost fo the firm and move the burden entirely to Bowls Plates division making the profit to decrease.

Explanation:

\left[\begin{array}{cccc}&$Continued&$Discontinued&$Differential\\$sales&105700&0&(105700)\\$variable cost&-61635&0&61635\\$contribution&44065&0&(44065)\\$fixed cost&-23465&-23465&0\\$Result&20600&-23465&(44065)\\\end{array}\right]

Fixed cost:

42,300 x 15% + 42,800 x 40% = 23,465

Variable cost:

42,300 x (1 - 15%) + 42,800 x (1 - 40%) = 61,635

The differencial will be discontinued less continued column

If the result is positive there is a cost saving if discontinued

if negative there is a loss in contribution if discontinued

4 0
3 years ago
In business, the acronym VRIO stands for Value, Rarity, Imitability, and Opportunity. a. True b. False
bonufazy [111]

Answer:

b. False

Explanation:

The VRIO framework is used for ascertaining a company's resources and it's competitive advantage.

VRIO is an acronym which stands for value, rarity, Imitability and Organization.

Value refers to question on whether available resources are capable of harnessing opportunities and minimizing threats.

Rarity refers to the question of possession of unique or rare resource capabilities which can yield competitive advantage.

Imitaility relates to the question of duplicity or imitating competitors.

Organization refers to organizing available resources and capabilities in such a manner so as to utilize them optimally.

7 0
3 years ago
Francis interviews two candidates for an administrative assistant position that will require a fair amount of project management
Sholpan [36]

Answer:

The correct answer is (c)

Explanation:

In this situation, Francis will select the second candidate based on his cognitive abilities. There are various aspects which employers would like to see in a candidate, for example, education, experience, professionalism and many other qualities including cognitive abilities. Cognitive ability shows candidates seriousness towards a job their abilities, how focus they are and their mental strength.

5 0
3 years ago
Shantel has a checking account balance of $318.59. She wrote a check to United farmers Market for $52.17. What is Shantel's new
AlladinOne [14]

Answer:

$266.42

Explanation:

$318.59-$52.17=$266.42

6 0
3 years ago
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