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
marusya05 [52]
3 years ago
11

Considering wacc, if the federal government suddenly stopped allowing deductibility of corporate debt interest, what would happe

n to the value of all corporations that issue step in their capital structure:
Business
1 answer:
mart [117]3 years ago
4 0
<span>Considering WACC, if the federal government suddenly stopped allowing deductibility of corporate debt interest, what would happen to the value of all corporations that issue step in their capital structure is that the risk of the project are the same as that of those other assets of the firm and would remain during the duration of the project and the project would support the same fraction  of debt to value as the overall capital structure that remains constant for the life of the project. </span>The weighted average cost of the capital or WACC is the company's average rate of return to compensate all its different investors and they represent the source of finance in the target capital structure of the company.
You might be interested in
Identify and explain the dimensions of Iqra University’s culture, ranging from high level to low level for each dimension of cul
Sloan [31]

The correct answer to this open question is the following,

The dimensions of Iqra University’s culture are the following.

Iqra University is a private university in Pakistan, and one of the most prominent colleges in the Pakistan education system.

The most important dimension of its culture is to provide high-quality education to its students. This university tries to match the graduates with the always-changing market necessities in Pakistan.

Another important aspect is that school teachers instill critical thinking abilities in each of their students because as part of its culture, they want to help students think wisely in a complicated world in order to choose the best decision and action.

One key aspect of its culture is ethics. The University put emphasis on moral values as a way to make good decisions, not only in business but in life.

7 0
3 years ago
Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth
Nimfa-mama [501]

Answer:

A. 1 and 4 are true

Explanation:

Statement 1: When inflation goes up the market prices of goods increase and reduces buying power of customer. So, if you get $100 even after 5% inflation, you would get $95 worth good.

Statement 2: It is commonly known as, the higher the risk the higher the gain. So, risk premium and risk exhibited by security is directly related with each other.

Statement 3: Since, risk free rate is the compensation for time value of money, that is why it can’t make real risk-free rate negative because real risk rate is there, but inflation can go higher than risk free rate.

Statement 4: Maturity payment is paid to investors or savers after certain period of time along with principal amount.

Hence, A. 1 and 4 are true

6 0
3 years ago
Imagine that your boss has given you the task of giving a speech at the next staff meeting about new office procedures. What que
Kipish [7]
First and foremost, specifically which topics to cover and how much time to take covering them.
I would ask those questions because my boss may have a different idea of what needs to be communicated than I.  My boss may also have a different objective for the communication than I realized and I may be able to enhance that message in some way.
6 0
4 years ago
A company's normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fall
AleksAgata [21]

Answer:

value of company inventory = $2600

so correct answer is B) $2,600

Explanation:

given data

normal selling price = $20

selling price fallen = $15

current inventory = 200 units

purchased =  $16 per unit

cost fallen = $13 per unit

solution

we know that context inventory meaning is that inventory is reported the lower cost or the replacement cost

here lower is replacement cost = $13

so value of company inventory at lower of cost will be

value of company inventory = 200 units × $13

value of company inventory = $2600

so correct answer is B) $2,600

3 0
4 years ago
A. Following are the transactions of a new company called Pose-for-Pics.
stich3 [128]

Answer:

The August 31 trial balance is a debit and credit amount of $16,986

Explanation:

The journal entries for the following transactions is as follows;

  General Journal                          Debit                              Credit

1. Cash                                            $6,500

  Photography equipment            $33,500

  Common stock                                                                 $40,000

2. Prepaid insurance                       $2,100

   Cash                                                                                   $2,100

3. Office supplies                             $880

   Cash                                                                                    $880

4. Cash                                              $3,331

   Photography fees                                                              $3,331

5. Utilities expense                           $675

   Cash                                                                                     $675

August 31 trial balance                     $16,986                         $16,986  

The August 31 trial balance is a debit and credit amount of $16,986

4 0
3 years ago
Other questions:
  • Fiscal policies that require no government action but that are expansionary when the economy contracts and contractionary when t
    8·1 answer
  • XYZ Advisers is a federal covered adviser with an office in State A. It has 400 clients in State A; 6 clients in State B; and 3
    6·1 answer
  • On january 1 of year 1, congo express airways issued $3,700,000 of 6% bonds that pay interest semiannually on january 1 and july
    9·1 answer
  • In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the Decemb
    8·1 answer
  • The ______, authorized by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, is charged with writing and enforc
    8·1 answer
  • Clark’s Landscaping bills customers subject to terms 3/20, n/60.
    7·1 answer
  • In process cost accounting, the costs of direct materials and direct labor are charged directly to a.service departments b.proce
    9·1 answer
  • In a local survey, 100 citizens indicated their opinions on a revision to a local land-use plan. Of the 62 persons giving favora
    8·1 answer
  • Solaris Autos Inc., a large automobile company, made an initial small investment in a start-up company that was developing a sol
    5·1 answer
  • Industrialization Enterprise is considering a three-year project that will require an initial investment of $44,000. If market d
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!