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kondaur [170]
3 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]3 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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In a market analysis, the _____ is considered a good indicator of the potential of the market. It is derived by dividing the per
schepotkina [342]

Complete/Correct Question:

In a market analysis, the _____ is considered a good indicator of the potential of the market. It is derived by dividing the percentage

of users in a demographic segment by the percentage of the population in the same segment and then multiplying the quotient by

100.

A. cost per media (CPM)

B. quantitative advantage

C. index number

D. average frequency

Answer:

C, Index number

Explanation:

Index number in market analysis is a figure that compares the price or quantity of goods to standard value. Index number is a economic data figure.

A standard value is more often than not always equal to 100, which leaves the index number at 100 times the ratio as against the base value.

Index number helps market analysis by indicating the good or bad potential of a market, thereby helping economists to understand the said market.

I hope this helps.

4 0
3 years ago
Categorize each item below as a component of Gross Domestic Product (GDP): consumption, investment, government purchases, or net
a_sh-v [17]

Each items as a component of Gross Domestic Product (GDP) are:

Consumption:

  • Ice Cream
  • 55 cent tacos

Investment:

  • A domestically manufactured business computer

Government purchases

  • A public school teacher's salary

Net export:

  • An exported dollhouse

<h3>What is  Gross Domestic Product (GDP)?</h3>

Gross Domestic Product (GDP) can be defined as the overall value of goods and service that are produced and sold in the market during a particular period of time.

Based on the information given each items as a component of Gross Domestic Product (GDP) are:

Consumption:

  • Ice Cream
  • 55 cent tacos
  • A domestically manufactured personal computer
  • Cab fare for personal use
  • A ticket to a local sporting event

Investment:

  • A domestically manufactured business computer

Government purchases:

  • A public school teacher's salary

Net export:

  • An exported dollhouse

Inconclusion each items as a component of Gross Domestic Product (GDP) are:

Consumption:

  • Ice Cream
  • 55 cent tacos

Learn more about Gross Domestic Product (GDP) here:brainly.com/question/1383956

4 0
2 years ago
Auto insurance is needed primarily because of __________. (points : 2)
yan [13]
<span>Auto insurance is needed primarily because of </span>potential liability claims.

If you don't have it and you don't have insurance, you have to fix your car out of your own money, as well as pay for repairs of other cars if it is proven that it was your fault.

7 0
3 years ago
To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyze
Inessa [10]

Answer: Option (B) is correct

Explanation:

From the given case or scenario, we can state or conclude that the information intends to support a survival business objective. Survival is referred to or known as a short term objective or goal, especially for a small business that is just entering the market or starting out, or when an  organization enters a market.

6 0
3 years ago
Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The expected future net cash fl
DanielleElmas [232]

Answer:

Dr Impairment expense (p/l)   $20,800

Cr Accumulated depreciation   $20,800

Being entries to recognize the impairment of asset.

Explanation:

An asset is said to be impaired when the carrying amount is higher than the recoverable amount. The recoverable amount is the higher of the value in use (the expected future net cash flows from the use of the asset) and the  fair value less cost to sell.

Given;

Cost = $936,000

Accumulated depreciation = $395,200

Carrying amount = $936,000 - $395,200

= $540,800

The recoverable amount is the expected future net cash flows from the use of the asset $520,000 as this is higher than the fair value of the equipment which is $416,000.

Since the carrying amount is higher than the recoverable amount, the asset is impaired.

Impairment = $540,800 - $520,000

= $20,800

The journal entries,

Dr Impairment expense (p/l)   $20,800

Cr Accumulated depreciation   $20,800

Being entries to recognize the impairment of asset.

3 0
3 years ago
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