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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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During January, Luxury Cruise Lines incurs employee salaries of $2.4 million. Withholdings in January are $183,600 for the emplo
garri49 [273]

Answer and Explanation:

The journal entry to record the  employee salary expense, withholdings, and salaries payable is shown below:

Salaries expense Dr $2,400,000

     To Income tax payable  ($360,000 + $150,000) $510,000

     To FICA tax payable $183,600

     To Account payable $24,000

     To Salaries payable $1,682,400

(being employee salary expense, withholdings, and salaries payable is recorded)

Here the expenses are debited and payable are credited as it increased the expenses and liabilities

6 0
2 years ago
Waterway has a standard of 2 hours of labor per unit, at $12 per hour. In producing 3800 units, Waterway used 7350 hours of labo
Vadim26 [7]

Answer:

Direct labor time (efficiency) variance= $3,000 favorable

Explanation:

Giving the following information:

Standard= 2 hours of labor per unit, at $12 per hour.

In producing 3800 units, Waterway used 7350 hours of labor.

<u>To calculate the direct labor quantity variance, we need to use the following formula:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 2*3,800= 7,600 hours

Direct labor time (efficiency) variance= (7,600 - 7,350)*12

Direct labor time (efficiency) variance= $3,000 favorable

7 0
3 years ago
The student-run newspaper asks students to visit a web page and respond to questions regarding a proposed tuition increase. Only
disa [49]

Answer:

C) both anonymous and confidential

Explanation:

  • As the student-run, the new paper and ask other students to visit a link firm the new paper and respond to those questions and the responses for only those questions were recorded.  
  • This indicates that the newspaper survey is anonymous and confidential as the ant student can fill the survey and the information that is confidential as none outside the newspaper has access to those responses.
6 0
2 years ago
A constant-cost industry is one in which_______
tiny-mole [99]

Answer:

b.if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.

Explanation:

Constant-cost means the cost of producing one unit of product does not change no matter how many products each firm in the industry decide to produce.

If the cost of production is $100 for 100 units, $150 for 150 units, $200 for 200 units and so forth, it means the unit production cost is a constant $1 regardless of the quantity to be produced.

4 0
2 years ago
The premium on a put option on the market index with an exercise price of 1050 is $9.30 when originally purchased. At expiration
lianna [129]

Answer:

The put payoff = $1,072 - $1,050 = $22  per share

Explanation:

The put payoff is simply the difference between the spot price and the exercise price.

To determine the real profit obtained in this transaction we would need to know the investor's return rate. One of the basic pillars in finance it that $1 today is worth more than $1 tomorrow. We need a return rate to adjust the premium paid, for example if the return rate = 6%, then the premium would have been $9.30 x (1 + 6%/12)² = $9.30 x 1.005² = $9.39

profit = number of shares x (put payoff - adjusted premium)

5 0
3 years ago
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