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Ganezh [65]
3 years ago
8

If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stoc

k price? I. Decrease its asset turnover II. Increase its inventory III. Increase its gross margin IV. Issue a stock dividend
Business
1 answer:
Kitty [74]3 years ago
4 0

Answer:

III) Increase its gross margin

Explanation:

If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.

The only option that increases the value of the company is to increase its net profit, since:

  • an increase in inventory will result in a lower stock price
  • a decrease in the asset turnover ratio will result in a lower stock price
  • the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
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A team is trying to determine the best process type for producing a new product family. The product consists of a base model wit
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The correct answer is the option A: Cell

Explanation:

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3 years ago
Imagination Dragons Corporation needs to raise funds to finance a plant expansion, and it has decided to issue 15-year zero coup
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Answer:

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b) Interest deduction

After 1 year bond value from the above equation is 437.08

437.08 - 411.99 = 25.09

In the 14th year bond value from the above equation is 942.60

1000 - 942.60 = 57.40

c) Straight Line Method

Total Interest Paid = 1000 - 411.99

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Further computation is done in the image below.

8 0
3 years ago
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hen a monopolist is able to sell its product at different prices, it is engaging in a. distribution pricing. b. quality-adjusted
sertanlavr [38]

Answer:

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6 0
3 years ago
Elm City issued a purchase order for supplies with an estimated cost of $5,000. When the supplies were received, the accompanyin
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Answer:

$5000

Explanation:

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Cr. Fund Balance.....................$5000

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