The MM Theory with taxes implies that firms should issue maximum debt. In practice, this is not true because Bankruptcy is a disadvantage to debt.

The Modigliani-Miller theorem states that a firm's capital structure does not affect its value. The theorem states that market value is determined by the present value of future earnings. This theorem has been influential since it was introduced in the 1950s.

Full market investors can borrow for the same cost as they lend and invest rationally. It is also implied that the process has no transaction costs.

The mm theorem states that a company's capital structure is not a factor in its value. The theorem states that market value is determined by the present value of future earnings. This theorem has been influential since it was introduced in the 1950s.

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7 0

2 years ago

Blue Ridge Hot Tubs manufactures and sells two models of hot tubs: the Aqua-Spa and the HydroLux. Howie Jones, the owner and man

Marina CMI [18]

Answer:

Using Excel solver, the optimal solution is: 122 Aqua-Spa + 78 Hydro-Lux, and the maximum profit = $66,100

Explanation:

you have to maximize the following equation: 350A + 300H

where:

A = number of Aqua-Spa hot tubs sold

H = number of Hydro-Lux hot tubs sold

the constraints are:

A + H ≤ 200 ⇒ number of water pumps available

9A + 6H ≤ 1,566 ⇒ number of labor hours available

12A + 16H ≤ 2,880 ⇒ number of feet of tubing available

A ≥ 0 ⇒ non-negative numbers

B ≥ 0 ⇒ non-negative numbers

both A and B are integers

Using Excel solver, the optimal solution is: 122A + 78B, and the maximum profit = $66,100

6 0

3 years ago

Which of the following is not a type of bank?

yaroslaw [1]

Payday Lender isn't a bank.

Don't forget to add the answers next time

3 0

4 years ago