Answer:
b. The capital structure that minimizes the firm's weighted average cost of capital is also the capital structure that maximizes its earnings per share.
Explanation:
The optimal capital structure is estimated by calculating the mix of debt and equity that minimizes the weighted average cost of capital (WACC) while maximizing its market value. The lower the cost of capital, the greater the present value of the firm’s future cash flows, discounted by the WACC. Thus, the chief goal of any corporate finance department should be to find the optimal capital structure that will result in the lowest WACC and the maximum value of the company (shareholder wealth).
Answer:
TRUE
Explanation:
It is true that if you want to support business operations, you will focus on building a strong information MIS infrastructure, which identifies where and how important information, such as customer records, is maintained and secured.
A Management Information System (MIS), collects data from many different sources and then processes and organizes that data <u>to support businesses in making decisions.</u>
Most recently, technology and <u>data collection are so prevalent that businesses large and small are using Management Information Systems to improve their outcomes.
</u>
The type of funding obtained by Setsuko is the line of credit.
The following information should be relevant for the line of credit:
- It is treated as a flexible loan.
- It is an amount of money i.e. defined and can be accessed whenever it is needed and after that, it could be repaid instant or over a period of time.
- It is for a short period of time.
Since in the given situation, it is mentioned that:
- Setsuko obtained the funds for the short term.
- Bank lent her $10,000.
Therefore we can conclude that the type of funding obtained by Setsuko is the line of credit.
Learn more about the line of credit here: brainly.com/question/17937007
Answer:
Debit to Bad Debt Expense for $7,700
Explanation:
Based on the information given we were told that company's accounts receivable shows the estimate of uncollectible accounts totals of the amount of $6,400 while the Allowance for Doubtful Accounts has the amount of $1,300 as the debit balance. This means that the adjustment to record the bad debt expense for the period will require a
Debit to Bad Debt Expense for $7,700 Calculate as:
Dr Bad Debts 7700
(6300+1300)
Cr To Allowance for Doubtful Accounts 7700
