Answer:
Option b) False
Explanation:
Capital structure
This is usually defined as a composition or the combination of debt and equity that are used to finance a firm.
Signaling theory
According to this theory, It states that actions are taken by a firm to send "signals" to shareholders. It states that firms that uses issue debt to raise funds are signaling or projecting that their future prospects are favorable.
In this theory, managers do have information about their firm's prospects than do outside investors. It is also referred to as an action taken by a firm's management that gives possible clues to investors about how management looks at the firm's capital prospects. It centers on the ability to borrow money at a reasonable cost when good investment opportunities comes their way.
Credit the "bond payable" liability account for the total face value of the bonds and debit cash for the same amount.
Answer:
okie
Explanation:
a, false
b, false
c, false
d, true
sorry if im wrong im not good at this
hope you have a good day :)
Answer:
A) where the firm's marginal revenue equals its marginal cost.
B) average total cost per unit should equal the marginal cost per unit.
C) at their highest level.
Explanation:
Profit maximizing levels where marginal revenue = marginal cost, is applicable to every type of company regardless in what type of market they operate, e.g. perfect competition, monopoly, monopolistic competition, etc.
Answer: 11.1 times
Explanation:
Times Interest Ratio = Earnings before Interest and Tax/ Interest
Earnings before Interest and tax = Net Income + Interest + Tax
= 73,300 + 10,500 + 32,900
= $116,700
Times Interest ratio = 116,700/10,500
= 11.1 times