Answer:
C. VL = VU + PV(Tax Shield) - PV(CFD)
Explanation:
The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.
The income elasticity of demand for pasta is -0.4 based on the data from the question above. The answer to this problem can be solved using the elasticity formula which stated as ED = Q percent change / I percentage change where ED is the elasticity of demand, Q is the quantity of the product, and I is the consumer's income<span>. (Calculation: -4%/10%=-0.4)</span>
Answer:
Independent internal verification
Explanation:
Answer:
decline stage
Explanation:
In this stage the company has already took the benefits of issuing stocks as a way of funding. Had managed to make great investments, alliances, projects, that lead to a powerful market position. Then, having their stocks shared with lots of stakeholders is more a burden than a blessing. For this reason, they prefer to consolidate the control of the company as they don’t see valuable opportunities in the future market scenarios.
