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Zolol [24]
4 years ago
5

If there are two identical companies, one financed 100% equity and the other 50% equity and 50% debt, which would be worth more

Business
1 answer:
Umnica [9.8K]4 years ago
5 0
The one with 100% equity?
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Hence, the net income earned or net loss incurred by the business during the year $102,340.

Explanation:

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1. What is my audience expected to do after my performance?
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An insurance adjuster processes the claims of six policy holders in an eight hour work day. The adjuster uses $5 in gasoline and
natta225 [31]

Answer:

0.75 claims per hour

Explanation:

The goal is to determine the single factor productivity of the Insurance adjuster.

Step 1: Know the formula for Singe Productivity

Single Factor Productivity= Units Produced/ Labour Hours Used

Step 2: Calculate the productivity

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Donovan's would like to increase its internal rate of growth. Decreasing which one of the following will help the firm achieve i
IgorC [24]

Answer:

D) Dividend payout ratio

Explanation:

Internal Growth Rate of a firm is the maximum growth rate at which the firm can grow without involving external financing i.e. without assuming additional debt or equity infusion in the firm. At this level of growth the cash available from the operations can be used to fund the company.

It is calculated using the formula

IGR= ROA* b / (1-ROA * b)

where

IGR is the Internal Growth Rate

ROA is return on assets

b is the retention ratio or (1-dividend payout ratio)

To answer the question we look at each option

If ROA (Return on Asset) is decreased the numerator decreases and denominator increases in equation (1) and thus the Internal growth rate decreases, so ROA is not the answer

If Net Income is reduced the Return on Assets also falls thus as in the above case Internal growth Rate decreases

If retention ratio is reduced the numerator decreases and denominator increase leading to a fall in IGR

If dividend payout ratio is decreased the retention ratio increases leading to the increase in numerator and decrease in denomonator leading to an increase in the IGR. Thus Decreasing the dividend payout ratio will increase the IGR.

If Return on Equity is reduced i.e. indirectly Net Income is reduced for the same equity the similar effect as in part for Net Income and thus reduces the IGR.

So decreasing dividend payout ratio increases the interna growth rate of a firm

3 0
3 years ago
Which of the following is a difference between goods and services? a. Goods are not protected by patents, whereas services are p
amm1812

Answer:

B. Goods are tangible whereas services are intangible.

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