Answer:
explains how a firm's WACC increases with the use of financial leverage.
Explanation:
According to the MM Proposition II with taxes, the cost of equity rises with the increases use of debt in the capital structure of a firm.
= 
× 
As cost of equity increases, the firm's WACC increases also
The MM Proposition I with taxes reveals how utilizing the tax shield on debt causes an increase in the value of a firm
Answer:
The correct answer to the following question is option B, which is best fits the company's strengths and weaknesses to opportunities in the environment.
Explanation:
The contributing and the collecting of services and the products which are provided by the company. Many of the businesses and the companies will busy in business portfolio analysis as their section of their strategic planning.
Business portfolio is important because it demonstrates your skills and it increases your building trust which means when he or she sees your quality work and it can develop the trust about your business and also it helps in minimizing keep rejection of our services and the product.
Answer:
a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.
b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.
d. The formula to calculate present value of expected free cash flows is:
PVn=CFn(1+in)n
The formula for the present value of expected free cash flows when discounted at WACC is:
PV=∑Nn=0CFn(1+in)n
Explanation:
a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.
b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.
d. The formula to calculate present value of expected free cash flows is:
PVn=CFn(1+in)n
The formula for the present value of expected free cash flows when discounted at WACC is:
PV=∑Nn=0CFn(1+in)n
Answer:
Explanation:
While buying a computer , the potential purpose and usage of the computer should as well as the component of the computer to buy should be considered in order to make a right selection .
As graphics designing software is processor intensive , a processor with a very high speed of at least 1 Ghz and an adequate RAM to aid faster process at once , minimum of 8Gb is required.
However , considering the function of a secretary which is to track billing and hours , a computer with a slower process will definitely perform the task
Answer:
Governments that are interested in minimizing the efficiency costs of taxation should only tax goods where demand or supply, or both, are relatively inelastic.
Explanation:
hope this helps
