All categories

2 years ago

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

Business

1 answer:

inysia [295]2 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

The management of GH Apparel has thoroughly analyzed the market and recognizes the wants and needs of different customer groups.

Sergio039 [100]

Answer: Market-oriented

Explanation:

The market oriented organization is one of the type of business approach that producing the various types of products and the services according to the customer requirement or desire.

The main aim of the market oriented organization is that they focus on the selling and also designing goods and the services that satisfied the consumer desire.

According to the given scenario, the management of the GH apparel is the market oriented organization as it properly analyzed the market and also recognize the actual requirement of the customer.

Therefore, Market-oriented is the correct answer.

5 0

2 years ago

True or False: Diminishing returns will occur when investing in the same TQM Initiative round after round. A. True B. False 2. T

kirill115 [55]

Answer:

True
True
True
True
Capstone courier

Explanation:

7 0

2 years ago

If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the prod

mestny [16]

Answer: C. 50%

Explanation:

From the above question, If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the production process then the percentage completion for conversion costs is 50%

3 0

2 years ago

The list of steps required to get the same regult each time a task or activity is performed is known as the:

enyata [817]

Answer:

The answer is C. procedure

Explanation:

I found it here: https://quizlet.com/155356515/chapter-3-automotive-vocab-flash-cards/

4 0

1 year ago

When looking for a car to buy, what can you learn from classified ads?

Luden [163]

The cost of car, year, make, model, mileage

4 0

3 years ago