All other member nations will help defend it
Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
Thanks!
Answer:
Common Stock 100,000
Retained Earnings 425,000
Total 525,000
Explanation:
Paradise Travel Service Statement of Net Income
Fees Earned : 900,000
Less Office Expense : (300,000)
Less Miscelleaneous Expenses :( 15,000)
Less Wages expense (450,000)
Net Earnings 135,000
Paradise Travel Service statement of stockholders’ equity for the year ended May 31, 20Y6
Common stock Retained Earning Total
Balance Jan 1 60,000 300,000 360,000
Additional Invested capital
40,000 - 40,000
Net Income :
- $135,000 $135,000
Less Dividends paid
- ($10,000) ($10,000)
Balance, May 31 20y6
100000 425000 525000
Common Stock 100,000
Retained Earnings 425,000
Total 525,000
<span>I am definitely sure that correct answer is: Using conversion cost per equivalent unit is appropriate for many business that use process costing because d</span>irect labor and factory overhead enter the production process at the same rate. To calculate cost per equivalent unit you need to the total cost of production and divide by the number of units.