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
azamat
3 years ago
15

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.

You might be interested in
Your product Belch has an actual market share of 14.2%, and a potential market share of 17.6%. The most likely scenario to expla
jok3333 [9.3K]

Answer: Your budget for sales and promo are excessive, and you reached diminishing returns on your spend.

Explanation:

You can check the options online.

The market share refers to the percentage of total sales that is generated by a company in an industry.

If the potential market share is higher than the actual market share, the reason for this will be due to the fact that the budget for sales and promo are excessive, and you reached diminishing returns on your spend.

5 0
3 years ago
Matthew​ Liotine's Dream Store sells water beds and assorted supplies. His​ best-selling bed has an annual demand of 410 units.
never [62]

<u>Given:</u>

Annual demand = 410 units

Ordering cost = $41

Holding cost = $5 unit per year

<u>To find:</u>

Number of units to be ordered each time an order is placed

<u>Solution:</u>

On calculating the number of units,

\Rightarrow \sqrt{(\frac{2(390)(38)}{5})} \rightarrow\sqrt{\frac{780\times38}{5}}= 76.99

Therefore, to minimize the total cost, approximately 77 units should be ordered each time an order is placed.

5 0
3 years ago
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $1,000 of dep
klemol [59]

Answer:

net income exceeded the free cash flows by $550 million

Explanation:

net income = ($8,250 - $5,750 - $1,000 - $160) x (1 - 35%) = $871 million

net cash flows:

operating activities = $871 + $1,000 - $300 = $1,571

investing activities = ($1,250)

net cash increase during the year = $321 million

net income exceeded the free cash flows by $871 - $321 = $550 million

7 0
3 years ago
Why dont you guys use Question Cove or another service. Why do you like brainly so much?
Slav-nsk [51]

because I think people answered their questions really fast even though they don't sometimes

6 0
3 years ago
Read 2 more answers
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest
Rzqust [24]

Answer:

E. $7,190

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

For project A,

Cash flow in year 0 = $-14,500

Cash flow in year 1 = $9,500

Cash flow in year 2 = $9,500

Cash flow in year 3 = $9,500

I = 15%

NPV = $7190.64

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
Other questions:
  • Lisa is a manager at a thriving marketing company. Her boss recently gave her authorization to increase her department’s yearly
    14·1 answer
  • Can someone help me out with this answer?
    8·1 answer
  • Moses is working on a kibbutz in Israel where all the members have the same standard of living and they equally divide the profi
    10·1 answer
  • Why do markets exist?
    7·2 answers
  • Keeping federal withholding allowances less than 6, in which of the following cases will the amount of federal tax withheld from
    7·1 answer
  • Consider the following hypothetical transactions of the Balance of Payments of Country A: 1. Country A's firms export to Country
    8·1 answer
  • If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be repo
    5·1 answer
  • 1. What characteristics of sales promotions account for the high levels of expenditures that have been allocated to them in rece
    7·1 answer
  • The following table shows the approximate value of exports and imports for the United States from 1997 through 2001.
    12·1 answer
  • Nedra uses her debit card on a daily basis. The last time she used it was the evening before at a restaurant. This morning, she
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!