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3 years ago

The firm's target capital structure should do which of the following?

Business

1 answer:

inysia [295]3 years ago

8 0

Answer:

e. Minimize the weighted average cost of capital (WACC)

Explanation:

A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.

B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.

C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.

D: It is out of question because target capital structure cannot obtain the bond rating.

E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.

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The village of Hempstead has been taking a look at the issue of responding to 911 calls. It is a small community and geographica

yuradex [85]

Answer:

$\bar X = \frac{17+12+9+16+14}{5}= 13.6min$

So then the best answer for this case would be:

a. 13.6 minutes

Explanation:

For this case we have the following data for the response rates:

17,12,9,16,14

And we want to calculate the mean response time for 911 calls in this village.

And for this case we use we can use the definition of sample mean given by:

$\bar X = \frac{\sum_{i=1}^n X_i}{n}$

Where n = 5 represent the sample size for this case. If we replace we got:

$\bar X = \frac{17+12+9+16+14}{5}= 13.6min$

So then the best answer for this case would be:

a. 13.6 minutes

The sample mean is an estimator unbiased of the population mean because:

$E(\bar X) = E(\frac{\sum_{i=1}^n X_i}{n}) = \frac{1}{n} \sum_{i=1}^n E(X_i) = \frac{n\mu}{n}= \mu$

For this reason is a good statistic if we want to see central tendency in a group of values.

8 0

3 years ago

"once a firm is out of alignment, it does not mean that it has to stay that way."

Vinvika [58]

This statement is true.
If something is out of alignment, it means that something is not properly working - something is not aligned the way it is supposed to be. However, this of course doesn't mean that it has to stay that way forever - there are ways to bring the firm back into alignment.

5 0

3 years ago

The finished goods inventory on hand on December 31, 2018 was 21,000 units. It is the company's policy to maintain a finished go

BigorU [14]

Question Completion:

Benet Company has budgeted the following unit sales for 2019 and 2020:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1

Sales units 105,000 60,000 75,000 120,000 90,000

Answer:

Benet Company

Production Budget for 20198:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales units 105,000 60,000 75,000 120,000

Ending inventory 12,000 15,000 24,000 18,000

Units available for

sale 117,000 75,000 99,000 138,000

Beginning inventory 21,000 12,000 15,000 24,000

Production 96,000 63,000 84,000 114,000

Explanation:

a) Data and Calculations:

Budgeted unit sales for 2019 and 2020:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1

Sales units 105,000 60,000 75,000 120,000 90,000

Ending inventory 12,000 15,000 24,000 18,000

Units available for

sale 117,000 75,000 99,000 138,000

Beginning inventory 21,000 12,000 15,000 24,000 18,000

Production 96,000 63,000 84,000 114,000

8 0

3 years ago

When recording inflow and outflow of cash flow statements it is important to

Nastasia [14]

Answer: Cash inflows include the transfer of funds to a company from another party as a result of core operations, investments or financing. Such cash inflows include payments to the company by customers and banks and the contribution of equity by investors who purchase the company’s stock or partial ownership in a company.

Cash outflows include the transfer of funds by a company to another party. Such cash outflows include payments to business partners including employees, suppliers or creditors. Cash outflows also occur when long-term assets are acquired, investments are purchased, or settlements and expenses are paid.

7 0

3 years ago

An organization of member brokers who agree to cooperate in the sale of properties listed by other brokers in exchange for a sha

Reika [66]

Answer:

Multiple listing service

Explanation:

Multiple listing service is services that incorporated by a broker to collect information about any property.

The purpose of this service is to provide the details to a broker about the property listing by the seller.

Different tools are used by the broker that shows the listing of the seller of a property to share the detail information about a property to find any potential buyer.

7 0

3 years ago