They used <span> Independent record labels to their advantage.</span>
Answer:
A. The difference between the net income the analyst expects the firm to generate and the required earnings of the firm.
Explanation:
Residual income measures an organisation's internal corporate performance by looking at the difference between the income geneated by the firm and the required minimum returns. It can be described as the excess of generated income over required earnings for the firm.
For personal Income, residual income represents the income an individual has left after deducting all personal expenses and all debts.
Based on the question, therefore, residual income will be the excess amount after a company's analysts' deduct the required earnings of the company from what the company generates.
Answer:
not rescind the contract
Explanation:
According to the given situation, Veronica offers to Rowena to purchase his luxurious sedan by saying that it has been into an accident. After that Rowena hires Laszlo who is a mechanic to repair the sedan. Here Laszlo told Rowena that this sedan is mostly into an accident, after knowing these details Rowena is decided to purchase a car. After some time, Rowena faces a mechanical problem, here she can not break the contract as she already knew that car is have been into an accident mostly.
Therefore, the right answer is she cannot rescind the contract.
Calculation of Commission earned:
We are given that Joan sells new cars at a local dealership and she receives a 15% commission on profit.
So we can say that :
Commission earned = 15% * Total profit
Last week she sold 9 cars for the total of $10,870 dealer profit
Hence Commission earned shall be calculated as follows:
Commission earned = 15% * Total profit
Commission earned = 15% * 10870 = $1,630.50
Hence, the Commission earned by Joan is <u>$1,630.50</u>
Answer: D
Explanation: A capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decisions. In reality, these decisions may be highly interwoven. This interweaving is most apt to result in firms accepting some negative NPV all-equity projects because changing the capital structure adds enough positive leverage tax shield value to create a positive NPV.An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.
In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk to shareholders and the return on equity that they require. Thus, companies have to find the optimal point at which the marginal benefit of debt equals the marginal cost. As it can be difficult to pinpoint the optimal structure, managers usually attempt to operate within a range of values. They also have to take into account the signals their financing decisions send to the market.
A company with good prospects will try to raise capital using debt rather than equity, to avoid dilution and sending any negative signals to the market. Announcements made about a company taking debt are typically seen as positive news, which is known as debt signaling. If a company raises too much capital during a given time period, the costs of debt, preferred stock, and common equity will begin to rise, and as this occurs, the marginal cost of capital will also rise.
To gauge how risky a company is, potential equity investors look at the debt/equity ratio. They also compare the amount of leverage other businesses in the same industry are using on the assumption that these companies are operating with an optimal capital structure—to see if the company is employing an unusual amount of debt within its capital structure.
