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trapecia [35]
3 years ago
9

When comparing levered vs. unlevered capital structures, leverage works to increase EPS for high levels of operating income beca

use interest payments on the debt (a) vary with EBIT levels. (b) stay fixed, leaving less income to be distributed over fewer shares. (c) stay fixed, leaving less income to be distributed over more shares. (d) stay fixed, leaving more income to be distributed over fewer shares. (e) decrease, leaving more income to be distributed over fewer shares
Business
1 answer:
Leviafan [203]3 years ago
4 0

Answer:

The answer is D.

Explanation:

Unlevered capital structure is the one where there is no debt in the company, the company is completely financed by using equity. While levered capital structure involves the combination of both debt and equity in the company.

For a company, debt is an effective tool to raise funds for expansion without diluting or reducing ownership control by adding more shareholders.

Interest payment on debt is usually fixed.

Going for leverage does not increase the number of shares and Earnings Per Share(EPS) will be higher because earnings or income will be distributed to fewer shareholders unlike unlevered capital structure that tends to add to the number of shares thereby lowering EPS because earnings will be distributed to larger shareholders.

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Berning Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimate
scoundrel [369]

Answer:

$38,000 loss

Explanation:

For calculation of entry to record the sale of the tractor first we need to determine the total depreciation and net book value on Jan 1, 2018 which is shown below:-

Total depreciation = (Tractor cost - Salvage value) × (Hours in 2016 + Hours in 2017) ÷ Hours of operation

= ($180,000 - $20,000) × (2,400 + 2,100) ÷ 10,000

= $72,000

Net book value on January 1, 2018 = Tractor cost - Total depreciation

= $180,000 - $72,000

= $108,000

Loss on sale = Sold tractor amount - Net book value on January 1, 2018

= $70,000 - $108,000

= $38,000

8 0
3 years ago
__________is the ability to increase or decrease resources for any given workload. You can add additional resources to service a
dybincka [34]

Answer:

Scalability

Explanation:

Scalability is the ability to increase or decrease resources for any given workload.

  • When the resource is increased by the addition of more resources to service a workload, it is known as Scaling Out.
  • When the resource is decreased by the reduction of resources to service a reduced workload, it is known as Scaling In.
  • When additional capabilities is added to manage an increase in demand to the existing resource , it is referred to as Scaling Up.
  • Likewise, when capabilities is reduced to manage a decrease in demand to the existing resource , it is referred to as Scaling Down.

Scaling does not have to be done automatically.

4 0
3 years ago
Read 2 more answers
Sonia creates tests for judging product safety and advises companies about how to reduce harm from use or misuse of the product.
MAVERICK [17]

Answer:

I think is Material Engineer.

Explanation:

8 0
3 years ago
How do you poop it out
ANEK [815]

Answer:

Uhhh what type of statement is this, is this a question???????

8 0
3 years ago
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Vedmedyk [2.9K]

Answer:

less expansive

Explanation:

i took the test. i got it right

5 0
2 years ago
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