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IgorC [24]
3 years ago
10

A firm sets a target capital structure to use when raising new funds in an effort to: a. maximize the dividend per share it pays

commons stockholders. b. minimize its cost of equity (rs). c. minimize its weighted average cost of capital (WACC). d. maximize its earnings per share (EPS). e. minimize its cost of debt (rd).
Business
1 answer:
Lostsunrise [7]3 years ago
6 0

Answer:

C) minimize its weighted average cost of capital (WACC).

Explanation:

The weighted average cost of capital (WACC) is determined by multiplying the different costs of capital by their relative weight (proportional to the company's total capital structure). You must include all the sources of capital in order to calculate the WACC, e.g. common stock, bonds, bank loans, preferred stock and other long term debts.

The lower the WACC, the lower the discount rate for the company's cash flows.

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Explain why entertainers and athletes can charge so much for their events.
Usimov [2.4K]
Because they are most likely a professional and have knowledge of the specific activity from either college or doing it Him/Herself what they're doing when it comes to the aspect in which they are teaching training etc.Therefore they charge extra from prior knowledge of the activity.
3 0
4 years ago
Extrapolative expectations work when prices are rising, but not when prices decline. True or False True False
Lemur [1.5K]

Answer:

False

Explanation:

Extrapolative expectations refer to an expectation in which there is a continuation of trend that means if the price of a property rises, then the demand is also rising and it pushed for more prices also there is a condition when the price is falling so it would also decrease in the market supply also it pushed out down

So the given statement is false

6 0
4 years ago
Splish Brothers Inc. issues $268,000, 10-year, 7% bonds at 97. Prepare the journal entry to record the sale of these bonds on Ma
chubhunter [2.5K]

The  journal entry to record the transaction is: Debit Cash $259,960; Debit Discount on bonds payable $8,040;Credit Bonds payable  $268,000.

<h3>Sales of bonds</h3>

Splish Brothers Inc journal entry

March 1,2022

Debit Cash $259,960

($268,000 × 97%)

Debit Discount on bonds payable $8,040

($268,000 × 3%)

Credit Bonds payable  $268,000

(To record sales of bonds)

Inconclusion the entry is: Debit Cash $259,960; Debit Discount on bonds payable $8,040;Credit Bonds payable  $268,000.

Learn more about sales of bonds here:brainly.com/question/13958571

5 0
2 years ago
Participation in sport keeps youths off the street and out of trouble. This is central to which explanation of the relationship
inn [45]

Complete/Correct Question:

Participation in sport keeps kids off the street and out of trouble. This is central to which explanation of the relationship between organized sport and delinquency?

a. labeling

b. economic strains

c. undifferentiated arousal

d. social bonding

e. differential association

Answer:

E, Differential association

Explanation:

Differential Association is a criminology term invented by Edwin Sutherland that shows how interaction between these people influence people to learn attitudes, values. characters, techniques as well as criminal behavior from each other.

To this effect, participation in sports brings youths together and as such changes their thoughts and are influenced to have discipline, ethics, etc which is an important aspect of sportsmanship. This influences helps to keep youths off the street and out of trouble subsequently.

Cheers.

7 0
3 years ago
How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume an interest rate of 10% an
Veronika [31]

Answer:

The perpetuity is worth $1486.43 more than the ordinary annuity

Explanation:

A perpetuity that with an annual cash inflow or cash outflow payable for a foreseeable future - for an infinite number of period

The present value of a perpetual annuity is calculated as

PV= A/r

PV = 1000/0.1

PV =&10,000

On the other hand, an annuity with  annual cash inflows or cash outflows for certain number of years is called an ordinary annuity.

The present value of an ordinary annuity is determined as follows:

PV = (1 - (1+r)^n)/r   × A

     = (1-(1+0.1)^(-20))/0.1 × 1000

    = 8.5135  × 1000

   = 8513.56

Difference in PV =  10,000 - 8513.56

                            = $1486.43

The perpetuity is worth $ 1,486.43 more than the ordinary annuity

3 0
4 years ago
Read 2 more answers
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