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Shalnov [3]
3 years ago
6

Stadford, Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the fir

m's:
A. capital structure.
B. capital budget.
C. asset allocation.
D. working capital.
E. risk structure.
Business
1 answer:
miss Akunina [59]3 years ago
3 0

Answer: (A) Capital structure

Explanation:

The capital structure is basically refers to the overall financial operation in an organization for the growth of the company. The combination of the debt and the equity is basically known as capital structure.

The equity is basically refers to the common and the preferred stock and the debt is one of the form of bond issue.

Therefore, the mixture of 40 percent debt and the 60 percent of the equity is refers to capital structure.

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A conglomerate is ________ a giant corporation composed of many smaller corporations. a corporation in the manufacturing sector.
alexdok [17]

Answer:

a giant corporation composed of many smaller corporations.

Explanation:

This option is not 100% right, but the other options were completely wrong. A conglomerate is a corporation that operates in totally different and unrelated industries. For example, a conglomerate can operate in the energy sector, financial services, education services, cruise lines, and agriculture. No two industries are even related to one another, and that is what operates a conglomerate from a normal corporation. E.g. Samsung is a conglomerate because it operates an electronics business, manufactures cars, builds ships, operates funeral homes, etc.

4 0
3 years ago
Departmental overhead rates may not correctly assign overhead costs due to:
Vika [28.1K]

Answer:C.overreliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity ofproduction.

6 0
3 years ago
If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stoc
Kitty [74]

Answer:

III) Increase its gross margin

Explanation:

If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.

The only option that increases the value of the company is to increase its net profit, since:

  • an increase in inventory will result in a lower stock price
  • a decrease in the asset turnover ratio will result in a lower stock price
  • the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
4 0
3 years ago
On January 1, year 4, Purl Corp. purchased, as a long-term investment, $500,000 face value Shaw, Inc. 8% bonds for $456,200. The
Alla [95]

Answer:

$468,000

Explanation:

Since the bonds will be held to maturity and purchased at a discount, their value will increase as maturity approaches. On December 31, year 5, the bonds should be reported at $468,002 ≈ $468,000

investment balance = $456,200 + $5,620 (difference between interest receivable and interest revenue 2004) +$6,182 (difference between interest receivable and interest revenue 2005) =  $468,002

interest receivable 2004 = $500,000 x 8% = $40,000

interest revenue 2004 = $456,200 x 10% = $45,620

difference 2004 = $45,620 - $40,000 = $5,620

interest receivable 2005 = $500,000 x 8% = $40,000

interest revenue 2005 = ($456,200 + $5,620) x 10% = $46,182

difference 2005 = $46,182 - $40,000 = $6,182

6 0
3 years ago
Calculate revenue. Revenue is the quantity sold times the price for the product. The quantity sold will be the smaller of the qu
ira [324]

Answer:

Revenue for Smart Suiting is $521,306.

Explanation:

Revenue is the business operational source of finance. IFRS has made standards for revenue recognition which need to be followed by all organizations. The revenue should be calculated after deducting trade and cash discounts. If there is any sales return it should be deducted from the gross revenue figure. Net revenue should be reported in the Income Statement.

3 0
3 years ago
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