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
Sphinxa [80]
3 years ago
9

According to the signaling theory of capital structure, firms first use common equity for their capital, then use debt if and on

ly if they can raise no more equity on "reasonable" terms. This occurs because the use of debt financing signals to investors that the firm's managers think that the future does not look good. True or False?
Business
1 answer:
grigory [225]3 years ago
7 0

Answer: False

                 

Explanation: In simple words, signalling theory refers to the business phenomenon which states that an increase of dividend by the management of a company depicts that the future aspects of a company is bright and there will be higher profits in the near future for the investors.

An issue of dividend by the company suggests that they have sufficient equity and are using debt just for cheap source of financing.

    Increasing equity in the company who is already getting high dividends can lead to a decrease in return as a small portion of income will be distributed to a larger base.

You might be interested in
An unlicensed property manager can do all of the following except: Maintenance Showing units Negotiating lease terms Furnishing
Lynna [10]

When a person is an unlicensed property manager, they can do all of the above except Negotiating lease terms.

<h3>What can an unlicensed property manager do?</h3>

An unlicensed property manager can show prospective buyers the units on sale as well as maintaining the units. They can also furnish people with published information on the units.

They cannot however, negotiate lease terms with people because they do not have the license and authority to do so.

Find out more on property management at brainly.com/question/7023042.

6 0
3 years ago
In which of the following situations would a delegation of contractual duties be allowed? Multiple Choice A painter hired to pai
Trava [24]

Answer:

A painter hired to paint your home.

Explanation:

Delegation of contractual duty occurs when the individual that is supposed to perform a task transfers the responsibility of performing the task to another person.

For example if someone is supposed to paint a house but he has other engagements. He can delegate to another painter to perform the painting.

Delegation does not transfer contractual rights as the original person still collects payment for performance of the task.

Usually delegation can occur for tasks that do not require special skill and can be performed by anyone.

In the other scenarios special skill is required so delegation will not be usually allowed.

8 0
3 years ago
Any point on a country's production possibilities frontier represents a combination of two goods that an economy:
Kay [80]

Any point on a country's production possibilities frontier represents a combination of two goods that an economy can produce. A production possibility frontier also know as PPF shows the maximum output that two goods or services can achieve when all of the resources are being used. For this graph to show the true possibilities, all of the resources have to be used to their full potential as efficiently as possible.

4 0
4 years ago
The corporate practice of acquiring or producing quality goods or services at a lower cost abroad thereby eliminating domestic p
nydimaria [60]

Answer:

a. outsourcing

Explanation:

Outsourcing can be regarded as a cost cutting measures in an organization, it involves the hiring of other party from another organization to perform some services or production in ones organization. The instances of outsourcing are Hiring human resource management as well as facilities management. Another one is hiring a

supply chain management,

It should be noted that The corporate practice of acquiring or producing quality goods or services at a lower cost abroad thereby eliminating domestic production is called outsourcing

5 0
3 years ago
It's the end of the accounting period and no electric bill has been received (but expense has been incurred. ; you should record
Sati [7]
You should make note of the fact that no bill was received but you did make the payment. 
8 0
3 years ago
Read 2 more answers
Other questions:
  • Today, there are many websites dedicated to consumers who post reviews of products and services, as well as comments about firms
    6·1 answer
  • Prepare an amortization schedule for a five-year loan of $71,500. Assume the interest rate is 7 percent per year and the loan ag
    15·1 answer
  • Adam Smith would agree that the benefits of free enterprise are a consequence of the human desire to make life better for others
    8·1 answer
  • Maridings Inc., an apparel manufacturer, employed a large-scale recruitment drive to hire some of the country's best fashion des
    8·1 answer
  • Concert Hall sells season tickets for six events at a price of $78. In pricing the tickets, the planners assigned the leadoff ev
    15·1 answer
  • Increasingly concerned about my minor heartbeat irregularities, I think that my health is being threatened, and more and more of
    14·1 answer
  • When latané and darley replicated their experiment on helping behaviors as a field experiment, they had two burly men steal a ca
    11·1 answer
  • Prinsip supremasi hukum
    12·1 answer
  • Low Fly Airline is expected to pay a dividend of $7 in the coming year. Dividends are expected to grow at the rate of 15% per ye
    12·1 answer
  • The inventory valuation method that results in the lowest taxable income in a period of inflation is:________
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!