1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
butalik [34]
4 years ago
12

Consider a change to the tax law that allows a company to increase its depreciation charges. According to the static theory of c

apital structure, the optimal level of debt should be lower than it was before the change.
True or False?
Business
2 answers:
n200080 [17]4 years ago
7 0

Answer:

True

Explanation:

Capital Structure can be defined as the relationship between the various longterm sources financing which are; equity capital, preference share capital and debt capital.

To maximize the intrisic value of a firm, The cost of capital structure must be reduced to the lowest level. by so doing, the optimal capital structure is archived.

Optimal capital structure is the combination of debt and equity that leads to the maximum value of the firm.

pishuonlain [190]4 years ago
7 0

Answer:

True.

Explanation:

If tax law allows a company to increase its depreciation charges, even if it seems advantageous, the company needs to keep the optimal level of debt lower than it was before the change.

This is because individualization must be limited, due to the possibility of this company needing to face bankruptcy, especially when the debt is very high. At this point, we can say that if the optimal debt level is not lower than it was before the change, the company will not achieve any benefits from the increase in depreciation charges, but will run the risk of leaving the debt negative in relation to capital.

You might be interested in
If the existing product is being sold to teenagers in one country and new entry involves selling the existing product to teenage
kap26 [50]

It is FALSE to assert that it is a new product use if an existing product is sold to teenagers in one country and a new entry involves sales to teenagers in a new country.

<h3>What is a new product use?</h3>

A new product use refers to the first usage of a new product by customers anywhere in the world.  A new product is also new even to the company that sells it.

But if the company had acquired some selling experience about the product in one country, it is not a new product use when it sells the product in a new country.

Thus, it is FALSE to assert that it is a new product use if an existing product is sold to teenagers in one country and a new entry involves sales to teenagers in a new country.

Learn more about new products development at brainly.com/question/6786480

5 0
2 years ago
The most important social skill in the workplace is _____.
Oksi-84 [34.3K]
<span>The most important social skill in the workplace is having a positive attitude.
</span>
Additional information:
>Social skill<span> is any </span>skill<span> facilitating interaction and communication with others
</span>>Workplace social skills<span> plays a very important rule, specially</span><span> nowadays because  of </span><span> the evolving nature of work. </span>
3 0
3 years ago
Altruon Inc., a manufacturing company, has production facilities in three different geographical locations. Production managers
iris [78.8K]

Answer: (D) Synchronous

Explanation:

 The synchronous communication is one of the type of real-time interaction such as phone and face-to-face communication between the two people.

The main benefit of the asynchronous communication is that it allow transmission of message and information between the sender and the receiver without any external type in the clock signal.

In the synchronous communication, the transmission of data or information are transmitted and received at the similar time.

Therefore, Option (D) is correct.

5 0
4 years ago
You see a television commercial for a product you may want to buy, and there is a telephone number you must call to place an ord
bulgar [2K]

Answer:

krkfkfgkgkgkgkf

Explanation:

nxnxnxxnxnxckfk

8 0
3 years ago
As a company owner, you are trying to grow your party supply sales by reaching new customers. You know most of your customers ar
Anton [14]

Answer:

The answer is: Customer segmentation

Explanation:

Customer segmentation happens when you divide your customers into groups whose members are similar in specific ways (in a marketing sense). Customers are usually segmented by age, gender, spending habits, geographical location, etc.

In this case the customers were segmented into two groups::

  • college students  
  • midsize and small-size businesses

3 0
3 years ago
Other questions:
  • The profit that the vendor makes per day by selling x pretzels is given by the function. P(x) = -0.002x2 + 1.4x - 400. Find the
    14·1 answer
  • What does the federal provision for "incidental uses and disclosures" mean? Accidental uses and disclosures are not subject to p
    15·1 answer
  • Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producin
    14·1 answer
  • An example of contractionary (taking money away from the general population) fiscal policy would be :
    14·1 answer
  • Pease Answer ASAP. I need help with sources to answer the following question:
    15·1 answer
  • When will the new Stranger Things season come out?
    15·2 answers
  • A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1 = $2.75), and it should continue to grow at a co
    6·1 answer
  • Jeff works as a computer repair technician
    5·2 answers
  • To reduce your chances of identify theft you should
    5·1 answer
  • The reasons to study economics include which of the following?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!