Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
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Communism is a type of political and social system. Under the Communism system, all the business has public ownership and the government has control over the businesses and the overall market. Due to the government regulation and rare private involvements under this system, there is a very little incentive to work or to produce quality goods and services.
Hence the answer is <u>Communism</u>
For it to be fun. No competition means no fun in the environment.
<span>They loan out the money in their customers' accounts and charge a higher interest rate on the loans.</span><span>
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Answer:
$300,000
Explanation:
Cash flow from investment are any cash that the company receives or pays for a long term investment for example buying a building or selling machinery etc. In this case the company bought building for a million dollars and land for half a million dollars. But the total cash investing outflow will be 300,000 because that is the cash that they initially paid or flowed out from their company, where as the rest was on mortgage. SO the total amount ofcash going out of the company for investing activities is $300,000.