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kondaur [170]
2 years ago
11

A manager should attempt to maximize the value of the firm by changing the capital structure if and only if the value of the fir

m increases: A. as a result of the change. B. to the sole benefit of the managers. C. to the sole benefit of the debtholders. D. while also decreasing shareholder value.
Business
1 answer:
faust18 [17]2 years ago
6 0

Answer:

Option a                                

Explanation:

In simple words, value maximization refers to the process under which the managers of an organisation tries to make or increase the existing economic profits, that is, the money left with the organisation after paying for the obligations of all the money providers including the lat in hierarchy, the equity shareholders.

Value maximization can be performed by changing the capital structure which affects the payment obligations. The value maximization affects all the stakeholders of the organisation therefore, the decision should be made by tasking into consideration them all.

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Deydey hollows out a piece of basswood to make a trough . if one makes trough by hollowing something out, what does trough mean
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A long hallow bucket that is used to feed animals and to keep water in for animals
5 0
3 years ago
Read 2 more answers
Find a recent new article relating to the use/misuse of inventory/assets within a business/organization that sells inventory.
DerKrebs [107]

Stock to sales is a performance ratio this is used to decide the rate at which the corporation is liquidating its inventory. but honestly, the inventory to sales ratio measures the amount of inventory the company is wearing compared to the quantity of income that is being made.

The principle feature of inventory is to provide operations with ongoing delivery of substances. To gain this function efficiently, your enterprise needs to try to discover a candy spot between an excessive amount and too little, without ever walking out of stock.

The 3 maximum commonly used stocks are uncooked substances, work in development (WIP) inventory, and finished items. inventory refers to all the products, items, and materials bought or manufactured by means of a commercial enterprise for selling to the customer to make an income.

Learn more about inventory sales here;

brainly.com/question/24868116

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7 0
1 year ago
At their regular monthly meeting, a group of local brokers agrees that the introduction of "discount brokerages" in their area w
steposvetlana [31]

Answer:

would be considered collusion.

Explanation:

Collusion refers to an illegal agreement between two or more businesses that decide to cooperate together by setting prices or production quotas. This businesses should naturally compete against each other, not team up to charge higher fees. Collusion is illegal because it leads to unfair market advantages because they negatively affect competition.

8 0
3 years ago
At December 31, 2018, Oriole Company reported the following information on its balance sheet.
drek231 [11]

Answer:

Bad debt expense (Dr.) $68,930

Allowance for Doubtful Debt (Cr.) $68,930

Explanation:

Accounts Receivable :

Balance $948,000

Add: Sales $3,609,930

Less: Sales returns $51,000

Less: Collections $2,756,000

Less: Write offs $97,000

Add: Recovery of old Bad debts $28,000

Adjusted Balance $1,653,930

Bad Debts :

Balance $78,000

Less: Allowance for doubtful debts $97,000

Less: Recovery $28,000

Adjusted Balance $9,000

7 0
3 years ago
ou are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days.
Taya2010 [7]

The net present value of this lockbox arrangement is $1,205,378.06.

Since you are considering implementing a lockbox system for your firm, and on an average day, your firm receives 1,370 checks with an average value of $ 880 each, and the daily interest rate on Treasury bills is 0.01 percent, and the bank charge per check would be $ 0.25, to determine what is the net present value of this lockbox arrangement, the following calculation must be performed:

  • ((1370 x 880) x 1.0001) - (1370 x 0.25) = X
  • 1,205,720.56 - 342.5 = X
  • 1,205,378.06 = X

Therefore, the net present value of this lockbox arrangement is $1,205,378.06.

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5 0
2 years ago
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