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Salsk061 [2.6K]
3 years ago
12

All else constant, an increase in a firm's cost of debt: a. will lower the firm's weighted average cost of capital. b. will resu

lt in an increase in the firm's cost of capital. c. will increase the firm's capital structure weight of debt. d. will lower the firm's cost of equity. e. could be caused by an increase in the firm's tax rate.
Business
1 answer:
Elanso [62]3 years ago
8 0

Answer:

C

Explanation:

will increasethr firm's capital structure weight of dept.

You might be interested in
Mccaskell corporation's relevant range of activity is 7,000 units to 11,000 units. when it produces and sells 9,000 units, its a
vodka [1.7K]

Answer:

$79,600

Explanation:

Calculation for what the total amount of direct manufacturing cost incurred will be :

Direct material $50,400

(8,000 x $6.30)

Add Direct labor $29,200

(8,000 x $3.65)

Total Direct cost $79,600

Therefore the total amount of direct manufacturing cost incurred is closest to: $76,600

3 0
3 years ago
Monetarists believe that changes in the supply of money Question 24 options: do not affect aggregate demand. affect aggregate de
s344n2d4d5 [400]

Answer: affect aggregate demand directly.

Explanation:

Monetarists believe that money supply is very important in determining the economic growth of an economy and this is why they advocate for monetary authorities to get involved in the monetary system in order to guide the growth of the economy.

To monetarists, the supply of money influences consumption as well as investment and so directly affects aggregate demand because both consumption and investment are components of aggregate demand. For instance, an increase in money supply increases both consumption and investment and so increases aggregate demand.

5 0
3 years ago
The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. Suppose
Lena [83]

Answer:

(B) $38,446,000

Explanation:

Assuming a linear depreciation model, depreciation will occur at the same rate each year. Since the total after 15 years is 90% of the original value, the percentage depreciated per year is given by:

P= \frac{90\%}{15} \\P=6\%

The book value (V) of this purchase after the first year will be:

V=\$40,900,000*(1-0.06)\\V=\$38,446,000

Therefore, the answer is (B) $38,446,000

3 0
3 years ago
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set
Vera_Pavlovna [14]

<u>Given:</u>

Annual property tax = $1,140

Number of days = 91

<u>To find:</u>

Seller's credit for property tax

<u>Solution:</u>

The following is the calculation of the seller credit for property taxes,

\text{Seller credit for property taxes} = \text{Total tax}\times \frac{\text{Number of days}}{360}

On plugging-in the values we get,

\text{Seller credit for property taxes} = \$1,140\times\frac{91}{360}

\Rightarrow \$1,140\times0.25278 = \$288

Therefore, the seller's credit for property taxes is $288.

6 0
3 years ago
Grayhawk Company reported net credit sales of $588,000 for the year ending December 31, 2019. On January 1, 2019, the Allowance
Sever21 [200]

Answer:

D) $8,040

Explanation:

<u>Credit Sales Method:</u>

Bad Debt Losses = 3% of Credit Sales

Bad Debt Losses = 0.03 x $588,000

Bad Debt Losses = $17,640

<u>Adjusted balance in the Allowance for Doubtful Accounts:</u>

Bad Debt Losses - (uncollectible accounts receivable - Allowance for Doubtful Accounts)

$17,640 - ($24,000 - $14,400)

$17,640 - $9,600

$8,040

5 0
2 years ago
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