Answer:
the account that earns 1.2 percent compounded monthly
Explanation:
We are talking about how many money will be earned in interested, which means that the higher percentage in a shorter period of time will earn a higher amount of money.
Answer:
The correct answer is how much debt should be assumed to fund a project.
Explanation:
The first thing that must be specified is that a company can be leveraged through debt, contributions from partners or equity, and that the relationship between these two variables will be the capital structure of the company. In addition, one could say that success comes with more certainty to a company that evaluates different possibilities in which these two forms of leverage come into play.
The term optimal structure, in finance, includes the close relationship that exists between the costs and benefits that may be the product of different forms of leverage. One of the points that financial advisors take into account to measure such relationship are the tax advantages that an entrepreneur can acquire when making financial decisions and the decisions he makes regarding the leverage he wishes to obtain.
The following are some of the aspects that are evaluated when looking for an optimal capital structure:
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Financing costs can be high as a result of the company neglecting its good name before the financial sector; In case the company does not comply with the business hypothesis underway or has a bad habit of payment, it can lead to high interest rates and unfavorable conditions or, in the worst case, close the doors in the financial sector.
- Having a good payment capacity and a good habit of timely payment will be key when requesting a loan, not only for obtaining the credit itself, but because you can obtain proposals from different financial institutions and take advantage of the best rates and benefits.
- The portfolio purchase options are always a good ally to improve the cash flow of the organization, to take advantage of this it is necessary to evaluate the rate, term and additional conditions that this new financing includes.
- The company must find that different transactions are not restricted in the contracts it makes with third parties. Having to subject the activity to the clauses imposed by suppliers or allies, can cause you to miss the opportunity to take advantage of other businesses.
- The agency theory and the moral hazard problem is something that must be taken care of very carefully, since the level of autonomy that the administrator has in the company can jeopardize the offer of value that the investor expects to receive. There have been cases in which the bad decisions of the administration, whether due to errors or fraud, have caused bankruptcy cases or penalties.
In reality, an optimal capital structure is found when investors obtain a significant value offer, that is, that the earnings per share –UPA– are greater, and when financial leverage is used without exceeding market risk levels, but it should also be clarified that all this varies according to the economic conditions of the country and the sector in which the company is located. Finally, it goes without saying that supporting the evaluation of decisions through different financial indicators makes it possible to make a more accurate decision in all cases.
Answer:
Increase demand for tickets to the Rancho Cucamonga Quakes game
Explanation:
An inferior good is a good whose demand increases when income falls and whose demand falls as income increases.
Inferior goods are opposites of normal goods whose demand increases as income rises.
I hope my answer helps you.
The effect of depreciation on koosharem’s 2021 financial statements is that it would lead to a decrease in the net income and a decrease in assets.
Depreciation is a method that is used to decrease the carrying value of an asset due to wear and tear.
There are different methods that can be used to determine the depreciation of an asset. They include:
- The double-declining method
- The straight line deprecation method
- The unit of production depreciation method
- Sum of the years deprecation method.
Building is considered as an asset to the business. It is a type of fixed asset. The carrying value of the building on the balance sheet would be reduced by $50,000. Depreciation is an expense. This would lead to an expense of $50,000 which would reduce net income by the same amount.
To learn more about depreciation, please check: brainly.com/question/24002169?referrer=searchResults
