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3 years ago

Why do firms generally prefer to borrow funds to obtain long-term financing rather than issue shares of stock?

1 answer:

4 0

The more firms get from obligation as opposed to issuing stocks, the more it can diminish the aggregate cost of capital in light of the fact that the enthusiasm from obligation is duty deductible which will help reduce the aggregate cost of capital. In any case, no firm can get from obligation everlastingly in light of the fact that, at one point in time, extra obligation financing will make the aggregate cost of capital increment rather than decline. So firms will get in view of their own enhanced capital structure to limit the aggregate cost of capital however much as could reasonably be expected. Also, in light of this upgraded capital structure, there is a point of confinement to how much a firm can keep getting from obligation.

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Activities that aren’t on a critical path may add value, but they don’t actually have to be performed in order to complete the p

scoundrel [369]

Answer:

A project is a one-time or infrequently occurring set of activities that creates outputs within prespecified time and cost schedules,

project management

while project management is the combination of planning, directing, and controlling resources (people, equipment, information, material) in a project to meet technical objectives within budget and schedule constraints.

its true

Explanation:

4 0

3 years ago

State whether each of the following statements is true or false.

sineoko [7]

Answer:

Answer for Question 1 is False

Answer for Question 2 is False

Answer for Question 3 is True

Answer for Question 4 is True

Answer for Question 5 is True

Explanation:

1. Debenture bonds include unsecured bonds but do not include mortgage bonds and sinking bonds.

2. Callable bonds are bonds issued by the issuer before the maturity period.

3. True about market rate.

4. True about Annual interest.

5. True about the Present value of a bond.

6 0

3 years ago

As a result of increased competition (higher number of firms n) in a monopolistically competitive industry, A. low minus cost

erastova [34]

Answer: D, overall productivity in the industry decreases.

Explanation: a producer can gain less market share from a given price cut.

Increased in competition means there are more firms and this will not effect consumers decisions.

5 0

3 years ago

For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a

ziro4ka [17]

Answer:

$3,860

Explanation:

The balance in the account Allowance for Doubtful Accounts is expected to be the projected amount in receivables of the company that will not be converting to cash.

Therefore to calculate final balance of allowance for doubtful balance

Beginning balance 2700

Bad debt expense (410000*1%) 4100

Less: Written off -2940

Ending balance 3860

So answer is $3,860

4 0

3 years ago

The S&P 500 index delivered a return of 20%, -10%, 20%, and 5% over four successive years.

sladkih [1.3K]

Answer:

C) 8.75%

Explanation:

Number of periods = 4 years

Given return rates = 20%, -10%, 20%, and 5%

To obtain the arithmetic average annual return, add the return rates given for all periods and divide the sum by the number of periods.

$AAR = \frac{20-10+ 20+ 5}{4} \\AAR=8.75\%$

Over four years, the S&P 500 index delivered an arithmetic average annual return of 8.75%.

4 0

3 years ago