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icang [17]
3 years ago
12

A management that wanted to increase the financial leverage of its firm would: raise additional capital by selling fixed interes

t rate long-term bonds. raise additional capital by selling common stock. use excess cash to purchase preferred stock for the treasury. try to increase its ROI by increasing asset turnover.
Business
1 answer:
Masteriza [31]3 years ago
7 0

Answer: Raise additional capital by selling fixed Interest rate long term bonds

Explanation:

A firm can finance it's operations through equity or debts, the art of a firm financing it's operations through debts like bonds etc it's refered to as financial leverage.

A firm cannot increase it's financial leverage by selling common stock, neither through buying stock from his cash and financial leverage does relate with asset turnover.

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4 0
3 years ago
Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant
8_murik_8 [283]

Answer:

150,000 Shares

70$ per share

Explanation:

Stock split at a rate of 3 for 1 means that holder of every 1 share will have total 3 shares after the split (e.g. he will receive additional two shares for each share he owns). Thus Copper Grill Restaurant Corporation's total shares will increase from 50,000 to 150,000 (50,000 * 3).

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6 0
4 years ago
If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what is the stock's expected dividend yield for the coming year?
Andre45 [30]

Answer:

the expected dividend yield is 4.81%

Explanation:

The computation of the stock expected dividend yield is shown belo:

Stock expected dividend yield is

= Dividend ÷ Price

where,

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And, the price is $26

Now place these values to the above formula

So, the expected dividend yield is

= $1.25 ÷ $26

= 4.81%

Hence the expected dividend yield is 4.81%

4 0
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