The correct question should be:
Which of the following best describes the goal of a firm?A) Maximizing the firm's profits.B) Maximizing the value of the firm's equity.C) Maximizing the value of the firm's debt.D)Minimizing the firm's risk.E) Maximizing the current dividend paid to shareholders.
Answer: Maximizing the firm's profits.
Explanation:
The Goal of a Firm is the objective that; that Firm seeks to achieve on a regular basis or after a specified period. In most cases the aim of opening a business is to make profit, therefore maximizing profit can be a goal of a business organization.
Is suitable if it is a fixed annuity but is unsuitable if it is a variable annuity
Answer: Option B.
<u>Explanation:</u>
An annuity is an agreement among you and an insurance agency where you make a singular amount installment or arrangement of installments and, consequently, get normal payment, starting either promptly or sooner or later.
An annuity is a long haul speculation that is given by an insurance agency intended to help shield you from the danger of outlasting your pay. Through annuitization, your buy installments (what you contribute) are changed over into occasional installments that can keep going forever.
Answer:
Let's say that the product is basic ibuprofen (Advil) pills. Since the product belongs to the pharmaceutical industry, it is required to have structured and often quality checks. Also, the product's structure or recipe can be easily changed by demanding guidelines (FDA). What's more, defects are very common if a certain substance goes over (or below) the required percent in the process.
Batch production is the best production method to use here, as it is basically production in groups (batches), where frequent control is provided. Also, in the case of a potential recall, it is easy to map the troublesome batch (due to the documentation, used materials and ingredients etc.).
Explanation:
You don't make the decisions about your finances until you have an outstanding debt; your creditors do. You determine how much you are charging for charge it. In some situations, you can increase the interest rate and the minimum payment and you can change your spending to suit it for less than two months.
You Should try to clear out the debt as quickly as possible, but not merely because it saves you money. The side effects of debt will influence other crucial aspects of your life so you don't make more profit and get what you want.
You exude confidence, however once you are out of debt. "You are appealing to people,". "And what do you guess? You draw money instead. So get out of your debt then hold out your debt, if you ask me, the quicker the better.
Answer:
e. Minimize the weighted average cost of capital (WACC)
Explanation:
A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.
B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.
C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.
D: It is out of question because target capital structure cannot obtain the bond rating.
E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.
