Directional Lock Question #5: This investment is bought with the goal of

Business

1 answer:

lara31 [8.8K]3 years ago

7 0

Answer: L

Explanation:

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The use of debt in the firm's capital structure will increase ROE if the firm:_____.

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Explanation:

If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.

ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.

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3 years ago

How to report sale of inherited property on tax return?

IrinaVladis [17]

Your share of the sales proceeds from the sale of a home you had inherited should be reported on Schedule D in the Investment Income section of TaxAct. You would enter "Inherited" as the date the property was acquired, then enter the cost basis, date of sale, and the sales proceeds.

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3 years ago

Blank is a checking that is dishonored because of insufficient funds

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bank account where the depositor can write checks. A bank account where money is stored and returns a low interest rate. The same thing as a checking account. ...Blank is a check that is dishonored because of insufficient funds.

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3 years ago

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Monetary policy could be procyclical if the Federal Reserve: a) is late recognizing that a recession has begun and conducts expa

gladu [14]

A) is late recognizing that a recession has begun and conducts expansionary monetary policy.

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3 years ago

or 2018, Gourmet Kitchen Products reported $22 million of sales and $18 million of operating costs (including depreciation). The

Vinil7 [7]

Answer:

Economic value added = $1,250,000

Explanation:

Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital

Economic value added= [($22,000,000 - $18,000,000) * (1 - 0.35)] - [$15,000,000 * 9%]

Economic value added = ($4,000,000 * 0.65) - $1,350,000

Economic value added = $2,600,000 - $1,350,000

Economic value added = $1,250,000

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3 years ago