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vladimir2022 [97]
3 years ago
12

g According to the signaling theory of capital structure, a firm with favorable prospects should raise new capital by issuing __

__ and a firm with unfavorable prospects raise new capital by issuing ____.
Business
1 answer:
Daniel [21]3 years ago
4 0

Answer:

The correct answer is letter "A": debt; equity.

Explanation:

Economists Franco Modigliani (1918-2003) y Merton Miller (1923-2000) in the signaling theory assume that investors and managers have the same information. Differences were caused as the result of companies issuing new stock when its price was overvalued or bonds when their price is undervalued.

Under that scenario, <em>managers usually were confident in their firms' ability to generate capital. Then, they tended to issue new debt. However,  managers discouraged usually issued new equity in the form of stocks or bonds.</em>

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Climate change and government action
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How can investors receive compounding returns? aby selecting a savings account that has a higher interest rate bby investing the
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Investors can receive compounding returns by investing their earnings back into their original investment. For example, if they earn $10 from a stock they invested in, they would place that $10 back into the stock that earned them that money.
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3 years ago
For each hypothetical scenario, indicate whether the tariff described is more likely a protective tariff or a revenue tariff.
LenaWriter [7]

Answer:

a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural resources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.

  • protective tariff since it is designed to protect domestic industries from competition of out of state producers. It is designed to increase the price of imported goods.  

b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.

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7 0
3 years ago
The checkbook balance of Lester Co. was $922.55. The bank statement revealed a balance of $3,881.14. The bank statement showed i
storchak [24]

Answer:

The reconciled balance is 7,294.14

Explanation:

bank statement      3,881.14

deposit in transit   9,555.88

oustanding check<u> (6,142.88)  </u>

bank statment        7.294,14

From the bank accout we deduct the outstanding check and increase by the deposit in transit.

accounting        922.55

interst                   77

service charge    (38.22)

note collected  6,815.00

check              <u>   (482. 19)  </u>

accounting      7.294,14‬

From the accounting we adjust for the transaciton which aren't know by the company:

the interest and service charge, the note colected and we also adjsut for mistake like the check not deducted.

in both we must reach the same final answer.

4 0
3 years ago
The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $60,226 1,3
Anton [14]

Answer:

Variable cost per unit = $4.60

Explanation:

To calculate the element of variable cost in a mix cost using high-low method, we need to take the cost of the highest activity level and subtract the cost of the lowest activity level from it and divide the answer by the difference between the highest and the lowest activity levels.

<u>High-low method</u>

  • Variable cost per unit = (Highest Activity Cost - Lowest Activity Cost) / (Highest Activity Units - Lowest Activity Units)

  • Variable cost per unit = (66436 - 60226) / (2660 - 1310) = $4.60 per unit
3 0
4 years ago
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