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Deffense [45]
4 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]4 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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The management of L Corporation is considering a project that would require an investment of $225,000 and would last for 6 years
Stolb23 [73]

Answer:

a. 1.5 years

Explanation:

Annual net cash flow = Annual net operating income + Depreciation

Annual net cash flow = $115,000 + $32,000

Annual net cash flow = $147,000

Initial investment = $225,000

Payback period = Initial investment / Annual net cash flow

Payback period = $225,000 / $147,000

Payback period = 1.530612245

Payback period = 1.5 years

5 0
3 years ago
In the context of sequencing, the _____ minimizes the average lateness of a set of jobs.
Likurg_2 [28]

In the context of sequencing, the shortest processing time rule minimizes the average lateness of a set of jobs.

Under the shortest processing time rule, if the highest priority is to minimize the average job lateness then the job sequence should begin with those jobs requiring the shortest processing time. The chief disadvantage of the shortest processing time rule is that long-duration jobs may have excessive completion times.

5 0
3 years ago
Assume that a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2012. On the acqu
AleksandrR [38]

Answer:

consolidation financial statements are for the parent and the subsidiary for the year =$ 1682,875

Explanation:

5 0
3 years ago
Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will ________ the price
Blizzard [7]

Money supply is the total amount of money in circulation which includes coins, cash and balance in savings account in a country at a period of time.

  • Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will <u>not change</u> the price paid for its use, otherwise known as the <u>discount rate.</u>

  • A change the money supply in a country causes a change in aggregate demand.

  • An increase in the money supply causes increase in aggregate demand and a decrease in the money supply causes decrease in aggregate demand.

Therefore, an increase in money demand will not change the price paid for its use, otherwise known as the discount rate.

Read more:

brainly.com/question/12225192

8 0
3 years ago
If a worksite includes more than one set of management and workers, who should have access to the information, training, and con
VashaNatasha [74]

Answer:

Every worker and manager per set of management within the worksite

Explanation:

In such a situation, all workers and managers should have access to the information, training, and controls needed to avoid workplace accidents. Since the possibility of one occurring is a common risk to all, being appropriately trained on right precautions and procedures is important to both managers and employees. They will know how to administer first aid and even perform CPR at workplace.

7 0
3 years ago
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