Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
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Depends on what you are trying to fix
The borrower will get a late fee for not paying on the due date.
You get to look at the progress of your business
Students can get a GED by
D) passing a test that awards a Certificate of High School Equivalency
Explanation:
GED has a bad rep among the students because it is not said to be favored by professionals or college but that is not the case entirely and one can be giving a GED for a various number of reasons.
If the person has not been able to cross high school for some reason and has been out of school for 10 months and does not want to wait another year, or simply cannot go for another year for the school they can get this test.
It is basically an equivalent test to the one that is usually touted to the kids as high school passing.
