The practice of having another company provide services is known as ____

Which of the following expresses the value of a levered firm (VL) in the Static Tradeoff model of optimal capital structure [Not

Brut [27]

Answer:

C. VL = VU + PV(Tax Shield) - PV(CFD)

Explanation:

The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.

7 0

3 years ago

The total cost accumulated in the sales department using the reciprocal method is (calculate all ratios and percentages to 4 dec

Mekhanik [1.2K]

Answer:

$127,778

Explanation:

Calculation for total cost accumulated in the sales department using the reciprocal method

Direct operating cost$70,000

Acturial Cost allocated 24,000

Premium Ratings allocated cost 24,000

Acturial Cost allocated 6400

Premium Ratings allocated cost 2400

Acturial Cost allocated 640

Premium Ratings allocated cost 240

Acturial Cost allocated 64

Premium Ratings allocated cost 24

Acturial Cost allocated 6

Premium Ratings allocated cost 2

Acturial Cost allocated 1

Premium Ratings allocated cost 0

Total cost accumulated $127,778

Therefore total cost accumulated in the sales department using the reciprocal method is $127,778

7 0

2 years ago

Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for

Sidana [21]

Answer:

Variable cost per unit= $6.5 per unit

Fixed costs= $3,750

Explanation:

Giving the following information:

Month - Number of Appointments - Total Cost

January: 375 $5,050

February: 350 $5,500

March: 200 $5,200

April: 500 $7,000

May: 400 $5,650

June: 300 $5,200

To calculate the variable and fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (7,000 - 5,050) / (500 - 200)= $6.5 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 7,000 - (6.5*500)= $3,750

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 5,050 - (6.5*200)= $3,750

3 0

3 years ago

What happens to the equilibrium price and quantity of sugar when consumers learn that sugar

liubo4ka [24]

When the equilibrium price of sugar increases, the equilibrium quantity will decrease. This is because price and quantity have an inverse relationship.

A market-clearing price often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal. The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like.

It is possible to utilize a mathematical formula to determine the equilibrium price. The equilibrium pricing formula is based on amounts of supply and demand; to find the price, put the quantity demanded (Qd) equal to the quantity supplied (Qs) (P). Here is an illustration of the equation: Qs = -125 + 20P when Qd = 100 - 5P.

Learn more about equilibrium price here:

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6 0

1 year ago

Agribusiness dominance of the food production industry led to

tangare [24]

I think it would be A) high wages for workers on large farms

4 0

3 years ago

The practice of having another company provide services is known as _____.