Answer:
B. <u>the weighted average cost of capital is minimized </u>
Explanation:
As per the traditional capital structure theory, as a firm employs more and more debt in it's capital structure, the financial leverage increases and since debt being a cheaper source of finance than equity with interest paid on debt being a tax deductible expense, the overall cost of capital initially falls.
As the firm further keeps increasing the proportion of debt, such debt raises the expectations of equity stockholders which raises the cost of equity and thus the overall cost of capital begins to rise.
An optimal capital structure under the theory refers to the one at which, overall cost of capital or the weighted average cost of capital of the firm is the lowest and value of the firm is the highest.
Answer:
Instructios are listed below.
Explanation:
Giving the following information:
Hubbard Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days.
Wages and salaries:
Fixed= $ 2,300
Variable= $ 7.20
Estimated Wages and Salaries= 2,300 + 7.2*2,100= $17,420
The overall purpose of differentiation is letter e, to create superior customer value. It is because differentiation is being defined as a way of making products to be more appealing or attractive in means of using unique qualities that may be of the customer's taste in a way of creating customer value.
That would be a Bass Drum
