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Ludmilka [50]
4 years ago
10

As the debt ratio increases,

Business
1 answer:
Sav [38]4 years ago
4 0

Answer:

2. more assets are debt financed

3. the ratio of debt to equity increases

Explanation:

We know

The formula of the debt ratio is presented below:  

Debt ratio = Total debt ÷ Total assets  

where,  

Total debt would be  

= Current liabilities + Long term debt

And the total assets = Total debt + owner's equity

So, if the debt ratio is increased so it impacted the more assets for debt-financed plus the debt to equity ratio is also increased.

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Williford Enterprises has purchased common stock from several companies and has classified them as long-term investments. If the
Tomtit [17]

The way they will record the dividends if they use the fair value method vs. the equity method is A. They will report dividends as income under the fair value method but as a reduction in the investment under the equity method.

<h3>What is a Stock?</h3>

This refers to the shares of a company that denotes a certain ownership percentage for each buyer of the stock.

Hence, we can see that Williford Enterprises has purchased common stock from several companies and has classified them as long-term investments and option A best shows how they would record the dividends.

Read more about the fair value method here:

brainly.com/question/17370892

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5 0
2 years ago
Defining Work
sasho [114]

Answer:

Defining Work  Practice Active  While Rosa is taking classes at the local community college to earn her degree in landscaping, she works part-time as a florist's  assistant. This part-time work is an example of  a job

Explanation:

A part-time work taken by Rosa while in school is more or less like a job rather than a career as it is not in line with her course of study in school.

4 0
3 years ago
Pearl, Inc., has offered $578 million cash for all of the common stock in Jam Corporation. Based on recent market information, J
Lelu [443]

Answer:

$45,000,000

Explanation:

Calculation for the minimum estimated value of the synergistic benefits from the merger

Using this formula

Minimum estimated value of the synergistic benefits =Cash-Independent operation

Let plug in the formula

Minimum estimated value of the synergistic benefits = $578,000,000 – 533,000,000

Minimum estimated value of the synergistic benefits =$45,000,000

Therefore the minimum estimated value of the synergistic benefits from the merger is $45,000,000

3 0
3 years ago
Innove Tech is a technological firm that wants to build a global service delivery system. It has consulted a larger firm, Ziff C
dimaraw [331]

Answer:

(C) Acquisition cost

Explanation:

The correct word for the given statement is acquisition cost

So option (c) is correct option

Acquisition cost alludes to the in with no reservations cost to buy a benefit. These expenses incorporate delivery, deals charges, and customs expenses, just as the expenses of site planning, establishment, and testing.

When securing property, obtaining expenses can incorporate looking over, shutting charges, and taking care of liens.

4 0
4 years ago
When is the best time to consider diversification for a company? A. The company has strong competitive position in its industry
Advocard [28]

Answer: A. The company has strong competitive position in its industry and industry growth is sluggish.

Explanation: Diversification is best done from a position of strength, a company should be doing well in its current industry and market before considering diversifying. A company having strong competitive position in its industry and when there is a sluggish growth in that industry, the company can diversified.

Diversification in corporate is a strategy that a company implement to increase market shares and sale volume by introducing new product in another industry and market different from the one they are operating.

5 0
3 years ago
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