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Deffense [45]
3 years ago
9

According to Modigliani and Miller (MM), in a world with corporate income taxes, the optimal capital structure calls for approxi

mately 100% debt financing.a. Trueb. False
Business
1 answer:
Strike441 [17]3 years ago
4 0

Answer:

True

Explanation:

The Modigliani Miller approach basically aims at the valuation of company, in which with each component of debt present with corporate taxes involved, the cost of business is reduced and that the value is increased.

As according to that when the taxes are present, the the debt component will only increase the return and value of the business.

Thus, it provides for increasing worth of business through debt utilization.

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Jenna isn’t sure if she should buy an extended warranty for her new laptop. Use the PACED decision-making process to help her de
Vladimir79 [104]
Problem: 
Buy extended warranty for $950 laptop or not?

Alternative:
1) Buy extended warranty
2) Not buy extended warranty

Criteria:
Practical and cost saving in the long-run

Evaluate Alternatives:
1) <span>Buy extended warranty </span>
       con:<span> pay additional $99. </span>
       pro: <span>5 year warranty coverage. </span>
       pro: repairs may be done at a local store

2) Not buy extended warranty
       pro&con: laptop comes with one-year limited warrant
       pro: no additional payment
       con: repairs will be done by manufacturer 
<span>       con: repair costs range from $50 to $450
</span>
Decision:
BUY EXTENDED WARRANTY
7 0
3 years ago
2. Explain two ways that an informational interview is different from a job interview 3. Describe two ways that an informational
stiv31 [10]
Informational interview is were you get information like for example how people on talk shows interview people.... a job interview is to not get information but its to get a job... one way its benefitial is that one you get information and two it helps you to understand things from their point to view... two questions i would ask in an informational interview would be ''whats your point of view'' and ''whats something you would want people to know about this that they don't already know... hope this helps!!! :)
5 0
2 years ago
Which type of portfolio might a young investor who is not afraid of risk choose?
Naddik [55]

The type of portfolio that the young investor who is not afraid of risk choose is the portfolio with a high percentage of stocks. Stocks are able to return higher compared to others and this makes it give a high risk because of its performance of providing losses or either profit. The answer is letter D.

7 0
3 years ago
Read 2 more answers
Select all that apply.
tino4ka555 [31]

Answer:

adding up consumption, investment, government expenses, and net exports

adding up the market prices of final goods and services produced in the U.S

adding up the incomes of producers and taxes paid to the government

Explanation:

GDP is a measure of the sum value of a country's output in a given period. The GDP value reflects economic growth or decline in a country for the period under review.

GDP is calculated using three methods. They include the income, production, and expenditure approach.

In the Income approach, economists add up all the earnings from the factors of production. Wages and salaries of all employees; the profits from businesses and corporates' ; rents, and interests form landlords are summed up to get GDP. Adjustments are made to cater for the taxes paid to the relevant government agencies. ( 4th option)

The production approach involves getting the value of all the finished consumer goods and services in the economy. The approach excludes intermediary goods and work-n progress. GDP is obtained by adding the total of the finished products and services and multiplying them by their prices. (3rd option)

The consumption option applies a formula that GDP = C+G+I+ NX, where C is private consumption expenditure,  G is government consumption and investment expenditure, and I in private investment expenditure. NX is the net imports. ( 1 st option )

4 0
2 years ago
Given the following information, calculate the loan-to-value ratio of this commercial loan: estimated net operating income in th
tatyana61 [14]

Answer:

b. 0.77

Explanation:

The formula to compute the loan to value ratio is shown below:

= Loan amount ÷ Purchase price

= $1,000,000 ÷ $1,300,000

= 0.77

It shows a relationship between the loan amount and the purchase price so that the accurate ratio can come

All other information that is given is not relevant as it is related to the debt yield ratio. Hence, ignored it

7 0
3 years ago
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