1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yakvenalex [24]
3 years ago
10

For capital budgeting and cost of capital purposes, the firm should always consider retained earnings as the first source of cap

ital (i.e., use these funds first) because retained earnings have no cost to the firm.A. True.B. False.
Business
1 answer:
zmey [24]3 years ago
8 0

Answer:

False

Explanation:

Even though the main reason why a corporation should hold retained earnings is to use them as a source of capital, it doesn't mean that retained earnings don't have any cost associated with them.

The cost of holding retained earnings is the rate of return that shareholders require on the corporation's stock.

You might be interested in
In December, a company signed a contract with a regular customer to sell products for $100,000. In January, the company received
REY [17]

Answer: In January, when the products are delivered.

6 0
1 year ago
Given a fixed level of sales and a constant profit margin, an increase in the accounts payable period can result from: an increa
blondinia [14]

an increase in the ending accounts payable balance.

The amount that flows to the accounts payable balance on the business's current period balance sheet is represented by the ending balance in the accounts payable (A/P) roll-forward schedule.

How is the balance of accounts payable determined?

On a company's balance sheet, accounts payable are listed. Given that it is money owing to creditors and appears on the balance sheet under current liabilities, accounts payable is a liability. Current liabilities are a company's short-term debts, usually lasting less than three months.

What Does an Accounts Payable Expense Example Look Like?

  • Logistics and transport.
  • Rough Materials
  • Fuel, power, and energy.
  • Products and apparatus.
  • Leasing.
  • Licensing.
  • Assembly and subcontracting services

learn more about ending accounts payable balance here <u>brainly.com/question/20713676</u>

#SPJ4

3 0
2 years ago
Birth certificates, social security cards, and driver's licenses are all examples of _____ that you might need to provide during
klemol [59]
These are examples of D. documentation

Hope this helps!
8 0
3 years ago
Read 2 more answers
Suppose an investment of 10,000 doubkes in value every 13 years. how much is the investment
nadezda [96]
130000 I think I hope so
5 0
3 years ago
A lawsuit claiming liability of a manufacturer, seller, or supplier to a buyer or other third party for injuries sustained becau
Vitek1552 [10]
Thhis type of lawsuit is known as a "class-action"
3 0
3 years ago
Other questions:
  • Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct
    10·1 answer
  • Critics argue that the BCG portfolio model sometimes provides misleading advice concerning how resources should be allocated acr
    7·1 answer
  • The Jack Frost Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid $ 11 comma 000 for ten
    5·1 answer
  • Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs.
    5·1 answer
  • The physical flow reconciliation is a report that:
    9·1 answer
  • Bart contributes $100,000 to the Fish Partnership for a 40% interest. During the first year of operations, Fish has a profit of
    12·1 answer
  • In the early 2000’s, mp3 players replaced cd players as the preferred portable music player. this shift in demand was likely the
    9·1 answer
  • The shareholder-debtholder conflict refers to:________
    5·1 answer
  • What are some actions that may be taken by a nation to reduce interest rates in a country?
    9·1 answer
  • (01.02 mc) which of these actions was an economic cause of increased tensions between the north and south?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!