When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by <u>selling common stock</u>. Long-term funding can be defined as any financial tool with maturity going beyond one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.
<h3>What is a retained earnings?</h3>
Retained earnings are the total of profit an establishment has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders.
Therefore, the correct answer is as given above
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The question is incomplete. However, it is about the calculation of after-tax cost of payment
Answer:
After-tax cost = payment*(1-0.37)
Explanation:
The after-tax cost is the net cost after the deduction of the amount of tax from the actual payment. In most cases, the value of the tax deduction is determined by multiplying the marginal tax rate with the payment. Then, the magnitude of the after-tax cost can be estimated by subtracting the payment from the tax deduction.
Answer:
b. debit warranty expense $10,000; credit estimated warranty liability $10,000
Explanation:
The journal entry to record the estimated warranty expense is shown below:
Warranty Expense Dr $10,000 ($200,000 × 5%)
To Estimated Warranty Liability $10,000
(being the warranty expense is recorded)
Here the warranty expense is debited as it increased the expense and credited the estimated warranty liability as it also increased the liability
Therefore the option b is correct
Answer:
3. There will be less competition than when the industry was nationalized monopoly
Explanation:
Privatization transfers ownership of state-owned corporations or properties from the government to the private sector. The transfer is through the sale of government-held shares to another company or the general public.
Since state-owned enterprises are large corporations, privatization creates the possibility of forming private monopolies. The private monopolies are likely to dominate the market and stifle out the competition. They are also likely to increase prices as private business is profit-motivated, which is detrimental to consumers.
