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lisov135 [29]
3 years ago
9

If we could accurately forecast interest rates, financing decisions would be easy. Although it's difficult to predict future int

erest rate levels, it is easy to predict that interest rates will fluctuate. Therefore, sound financial policy calls for using a mix of long- and short-term debt as well as equity to position the firm so that it can survive in any interest rate environment.
The firm's optimal financial policy depends on the nature of the firm's assets—the easier its assets can be sold, the more feasible it is for the firm to use ____ -term debt.

Consequently, it is logical for a firm to finance current assets with ___ -term debt and to finance fixed assets with ___ -term debt.
Business
1 answer:
Margarita [4]3 years ago
6 0

Answer:

the Correct Answers are:

1.  Short Term Debt

2. Short Term Debt

3. Long Term Debt            

Explanation:

Businesses manage a variety of current assets. Permanent current assets are needed for the firm to maintain its business, and they will be carried even through downturns in business cycles. Temporary current assets fluctuate seasonally or with business cycles. Each organisation must devise an optimal financing strategy that best fits its business situation and best manages its risk

It is thus logical to ensure that:

  • All fixed assets and the nonseasonal portion of current assets, as well as seasonal needs of current assets, are best financed with long-term capital.
  • While seasonal needs of current assets are financed with short term loans.
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On May 10, Keene Company sold merchandise for $4,000 and accepted the customer's Best Business Bank MasterCard. At the end of th
natta225 [31]

Answer:

Cash $3,848  

Service Charge Expense     ($4,000 ×3.8%) $152  

       To Sales Revenue  $4,000

(Being the record of the sale of merchandise is recorded)

Explanation:

The journal entry is shown below:

Cash $3,848  

Service Charge Expense     ($4,000 ×3.8%) $152  

       To Sales Revenue  $4,000

(Being the record of the sale of merchandise is recorded)

Since sale is made so we debited the cash it increased the assets plus there is service charge expense so the same is also debited as it increased the expenses and at the same time the merchandise is sold so it would be credited as it increased the revenue

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3 years ago
V144
stiks02 [169]

Answer:

3hr=80km/r

?=50km/R

(50*3)/80=1.88hr

6 0
3 years ago
Currently digby is paying a dividend of $19. 67 (per share). if this dividend were raised by $3. 64, given its current stock pri
Oliga [24]

Given its current stock price the dividend yield would be 42.39%.

Given,

Digby is paying a dividend of $19. 67 (per share)

Dividend were raised by $3. 64

Dividend yield = Dividend per share / Market price per share.

As there is no share price given, I shall assume that the share price is $100. The new share price will be:

= 100 * (1 + $3. 64)

= $464

The Dividend yield would then become:

= 19.67 / 464

= 42.39%

The dividend yield will be calculated on the basis of the dividend per share divided by the market price per share and this will be calculated on the basis of the percentage.

To learn more about dividend yield here:

brainly.com/question/18687546

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In 2003, several investment banking firms were fined $1.4 billion for ethics abuse related to the underwriting process. will thi
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This can be a deterrent for engaging in practices that are ethically wrong during underwriting process.
Knowing that they could be fined large amount of money if found to be engaging in acts that ethically incorrect will serves to discourage investment banking firms from such acts.<span />
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3 years ago
What are the dimensions of situational control identified by Fiedler's contingency leadership model? (Check all that apply.)
Kipish [7]

There are ways to control different situations. The dimensions of situational control Fiedler's contingency theory are leader-member relations, task structure, and position power.

Fiedler's is popularly known for his contingency theory. This theory helps to understand why managers can behave so differently.

The contingency theory states that there no one single leadership style often works for all employees.

He stated also that there are situational-contingent elements that influences a leader's ability to lead.

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