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3 years ago

The use of debt in the firm's capital structure will increase ROE if the firm:_____.

Business

1 answer:

DIA [1.3K]3 years ago

8 0

Answer: c. earns a higher return than the rate paid on debt.

Explanation:

If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.

ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.

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The following totals for the month of April were taken from the payroll register of Magnum Company. Salaries $12,000 Social Secu

Novosadov [1.4K]

Answer:

d. credit to Salaries Payable for $8,600

Explanation:

The journal entry would be as follows.

Magnum Company

Payroll Journal

Particulars Debit Credit

Salaries $12,000 Debit

Federal Income taxes withheld 2,500 Credit

Social Security & Medicare taxes withheld 900 Credit

Salaries Payable $8,600 Credit

Unemployment taxes are paid by the employer . They are not deducted from the employees' wages . They include both the federal and state taxes.Social Security & Medicare taxes withheld $ 900 include the Social Security & Medicare taxes $ 900.

6 0

2 years ago

Which of the following statements is false?

Paul [167]

Answer:

Explanation:

C. online retailing and in-store retailing experience similar rates of product return.

3 0

2 years ago

1. The risk free rate of return is often measured by the return on US Treasury Bills. True or False?

ivanzaharov [21]

The answer for number 2 is A

5 0

3 years ago

kendra always buys and uses wilson brand tennis balls. if she finds a penn or dunlop ball on the court, she gives it away. brand

Dmitry [639]

Considering the situation above, by building a strong brand, Wilson has effectively "reduced the price elasticity of demand for its products."

This is because the price elasticity of demand is a term in economics that defines the sensitivity of the quantity demanded of a commodity to its price.

Usually, the price elasticity of demand shows that when the price of a commodity increase, the quantity demanded decreases.

Thus, in this case, since it is said that Kendra allowed Wilson to charge a higher price and not lose many sales, therefore, Wilson has been able to reduce the price elasticity of demand for its products.

Learn more here: brainly.com/question/15654343

4 0

2 years ago

According to a 2000 public opinion poll, 69 percent of americans who responded were most proud of the nation’s

aalyn [17]

According to a 2000 public-opinion poll, 69 percent of Americans who responded were most proud of the nation's equal opportunity laws.

An equal opportunities policy should: make clear your organization’s commitment to equal opportunities, non-discriminatory procedures and practices. list all the forms of discrimination covered by the policy, ie age, gender, race, religion or belief, sexual orientation, disability or pay rate.

8 0

3 years ago