The more firms get from obligation as opposed to issuing stocks, the more it can diminish the aggregate cost of capital in light of the fact that the enthusiasm from obligation is duty deductible which will help reduce the aggregate cost of capital. In any case, no firm can get from obligation everlastingly in light of the fact that, at one point in time, extra obligation financing will make the aggregate cost of capital increment rather than decline. So firms will get in view of their own enhanced capital structure to limit the aggregate cost of capital however much as could reasonably be expected. Also, in light of this upgraded capital structure, there is a point of confinement to how much a firm can keep getting from obligation.
Answer:
The above pic might help you :)
The answer is c. 10-20 seconds
Answer:
The bad debt expense for the year is 3,000 dollars
Explanation:
We should solve for the bad debt expense with a reverse engineer on the allowance T account
Allowance
<u> DEBIT CREDIT </u>
Beginning 25,000
write-off 10,000
bad debt <u> X </u>
Ending 18,000
25,000 - 10,000 + X = 18,000
15,000 + X = 18,000
X = 18,000 - 15,000
X = 3,000
Answer:
b. Gas stations with infrequently used pumps are located at all four corners of an intersection.
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry.
examples of monopolistic competition are restaurants
Excess capacity occurs when in long-run a firm produces output that is less than socially optimum. it is when firms do not produce at the level of output at which long-run average cost is minimum.
