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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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Job 243 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 51,870 Direct la
Virty [35]

Answer:

$19.20

Explanation:

Computation for the unit product cost that would appear on the job cost sheet for this job.

First step is to compute the Total Product cost

Job 243

Direct material $ 51,870

Direct labor (435*11) 4,785

Overhead (516*13) 6,708

Total Product cost $63,363

Now let Compute the unit product cost

Unit product cost=$63,363/3,300 units

Unit product cost =$19.20

Therefore the unit product cost that would appear on the job cost sheet for this job is $19.20

8 0
2 years ago
The existence of a ________ means that the interest rate on a two-year bond will exceed the average interest rate on two success
krok68 [10]
The answer is risk-premium
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2 years ago
In december 1994 a man in ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years. (his deposi
Yakvenalex [24]
<span>If in December 1994 a man in Ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years, then his transactions deposits will be $8,000,000, his total reserves will be all in all 8 million pennies.</span>
4 0
2 years ago
Gift property (disregarding any adjustment for gift tax paid by the donor): a.Has the same basis to the donee as the donor's adj
Llana [10]

Answer: Has the same basis to the donee as the donor's adjusted basis if the donee disposes of the property at a gain.

Explanation:

For a gifted property, it should be noted that the tax basis for a donee that is, the person who gets the gift will be identical to that of the donor, this is, the person that donates the gift in cases whereby the property is gotten as a gift.

Therefore, a gift property disregarding any adjustment for gift tax paid by the donor will have the same basis to the donee as the donor's adjusted basis if the donee disposes of the property at a gain.

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3 years ago
The purpose or objectives of competition policy
denis23 [38]

Answer:

to encourage creativity

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3 years ago
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