Reinvesting cash flow allows a firm produce additional products and generate additional sales.

MM Proposition I with corporate taxes states that:

OLEGan [10]

Answer:

d.) I and II

Explanation:

The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.

8 0

3 years ago

Two things that help you begin decomposing work are _____ and _____. Select an answer: reporting period; deliverables the scope

Rashid [163]

Answer:

the scope statement; deliverables

Explanation:

"Decomposing" a project will ensure an efficient way of accomplishing the project's goal. Before doing this, it is important to know what "the scope statement" is and the "deliverables" (multiple tasks in the production).

"The scope statement" allows one to know what should be included in the decomposition. It also tells when you are going to stop breaking down and what tasks are to be included. Once you know this, it becomes easier to decompose a project with one deliverable at a time. The scope will also be further clarified.

So, this explains the answer.

8 0

3 years ago

Why do many economists believe that the best time to start a new business is toward the end of a recession?

Serga [27]

A recession is a time in an economy whereby trade and industrial activities is low.Economists believe that towards the end of this period is the best to start a business due to the following reasons: at this time things are more affordable as there is low circulation of money in the economy. Low-interest rates on loans thus credit is cheaper. Additionally, there will be less competition as the money is in the hands of few people during this time. Finally, many people want to save money and thus clients will be on the lookout for more affordable alternatives.

3 0

3 years ago

What is meant by allocative efficiency? Allocative efficiency is when every good or service A. is produced up to the point where

Alborosie

Answer:

Option (E) is correct.

Explanation:

Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.

Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.

5 0

3 years ago

The following terms relate to the fundamental qualities of useful information. Match the key letter of the correct term with the

Bumek [7]

Answer:

1. Providing information that is not biased toward one position or another.

c. Neutral

As an accountant, you cannot prepare, record or select information in order to favor someone's personal interests.

2. Providing information before it loses its capacity to influence decisions.

d. Timely

Information must be available when it can influence future decisions. E.g. having a 2010 cost report today is useless if you are preparing next year's budget.

3. Providing information that is proven to be free from error.

b. Faithful representation

Faithful representation means that information must be accurate, complete, neutral, and free from errors.

4. Providing information that would make a difference in a business decision.

g. Relevant

Relevant information should be material and be either predictive or confirmatory.

5. Provide information that accurately depicts what really happened.

b. Faithful representation

Faithful representation means that information must be accurate, complete, neutral, and free from errors.

6. Providing information that confirms or corrects prior decisions.

a. Confirmatory value

It can be used to check, confirm or correct prior reports or evaluations.

7 0

3 years ago