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natita [175]
3 years ago
13

The Pecking Order view on capital structure:

Business
1 answer:
irina1246 [14]3 years ago
4 0

Answer:

c. Argues that a firm's first choice for capital is retained earnings as there is no informational cost associated with using retained earnings.

Explanation:

The Pecking order theory states that a business should first of all seek for internal funds (retained earnings) as a first choice of capital.

When internal funds are depleted, it can now look to debt as a source of finance.

In turn when debt options have been exhausted the last resort is to look for funding from equity.

So the Pecking order argues that a firm's first choice for capital is retained earnings as there is no informational cost associated with using retained earnings.

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Gain liquid laundry detergent comes in a 40-ounce plastic bottle with a pour spout. When that bottle is empty, consumers can pur
Zolol [24]

Answer:

The correct answer is A

Explanation:

Reusable container is the container which is designed for the purpose to reuse without the impairment of the protective function. It involve components for other than reuse or returning packages, disposal and recycling.

So, the consumer want to use the 40-ounce bottle when its get empty, it will be an example of the reusable container.

8 0
3 years ago
Bob is unemployed because his skills have become obsolete due to technological advances. this is ____ unemployment.
hammer [34]

Answer: Technological Unemployment

Explanation: This happens when new technologies do the previous job better than its human counterpart.

7 0
3 years ago
A monopolistic competitive firm is currently charging a price of $10 and producing 12,000 units/month. It faces monthly fixed co
gizmo_the_mogwai [7]

Answer:

either the selling price decreases or the total output decreases

Explanation:

The firm's income statement:

total sales revenue =            $120,000

minus total variable costs = ($72,000)

<u>minus total fixed costs =       ($15,000)  </u>

net profit =                             $33,000

The long run equilibrium for a monopolistically competitive firm occurs when the firm is making no economic profit since it is charging a price =  average total cost.

In this case the average total cost per unit = $6 per unit + ($15,000 / 12,000 units) = $7.25 per unit

Since the firm is currently charging a higher selling price than average total cost ($10 > $7.25), one or two things might happen in the long run:

  1. selling price will decrease
  2. output will decrease
5 0
3 years ago
During 2018, P Company discovered that the ending inventories reported on its financial statements were incorrect by the followi
const2013 [10]

Answer:

D. $30,000 overstated

Explanation:

Understatement of ending Inventory overstate the value of cost of Goods sold and understate the value of Net income and retained earning as well.

Overstatement of ending Inventory understate the value of cost of Goods sold and overstate the value of Net income and retained earning as well.

In 2016 the net income and retained earning was understated by $120,000.

In 2017 the net income and retained earning was overstated by $150,000.

Net Effect of both event in Retained earning at January 1, 2018

$150,000 overstated - $120,000 understated = $30,000 overstated

4 0
2 years ago
If you are working on a highly energetic reaction, and you need to evacuate, what should you do
babunello [35]
The answer for this question is: Stabilize the reaction
Chemicals with highly energetic reaction will have more risk to create high-energy force if we somehow fail to contain it safely.
When you need to evacuate, this type of reaction could create an explosion, so it's really advised to stabilize the reaction first.
8 0
3 years ago
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