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earnstyle [38]
3 years ago
8

The Modigliani and Miller hypothesis suggests that capital structure doesn't matter. All of the following conditions need to be

met for this hypothesis to be true EXCEPT Select one: a. capital structure consists only of stocks and bonds. b. all corporate net income is paid out as dividends. c. corporate income is not subject to taxation. d. securities are traded in perfect or efficient markets.
Business
1 answer:
Dmitriy789 [7]3 years ago
6 0

Answer:

The false statement is letter "B": all corporate net income is paid out as dividends.

Explanation:

The Modigliani-Miller Theorem or M&M is used in financial and economic studies to analyze the value of a firm such as a business or a corporation. The M&M theorem states that a firm's value is based on its ability to earn revenue plus the risk of its underlying assets. This value is independent of the way the company distributes its profits or finances its operations.

In that case, dividends have nothing to do with how the M&M theorem values a business.

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Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had ap
podryga [215]

Answer:

Cost of Goods Sold will decrease by $2,679 after proration.

Explanation:

Under-applied or over applied overhead:

= Overhead incurred - Overhead applied

= $76,000 - $79,700

= (-$3,700)

Therefore, the Cost of Goods Sold after the proration:

= (over applied overhead × Overhead applied to COGS) ÷ Total overhead applied to cost of goods sold and finished goods

= ($3,700 × $57,700) ÷ ($57,700 + $22,000)

= $213,490,000 ÷ $79,700

= $2,679

Hence, the Cost of Goods Sold will decrease by $2,679 after proration.

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3 years ago
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coldgirl [10]
During April 11, 1993, at the Southern Ohio Correctional, the longest prison riot in the US history took place wherein the 11 days of riot took the lives of 9 inmates at the prison. Another famous riot was the 1990 Strangeways Prison riot which took place at a British penal colony and ended 25th of April.
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3 years ago
When a mortgage loan has been paid in full, it is important for the borrower to be sure that?
Olenka [21]
Of course it is it would be bad if something went wrong and the borrower had to repay it.
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What was the dominant pattern of race relation in colonies during the new imperialism period.
Amanda [17]
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Monica [59]
My guess would be B , Hope I helped :)
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