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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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Adamdata, a cell phone brand, is planning to collaborate with a few companies that create software for cell phones. It wants to
liubo4ka [24]

Answer:

B) options-based planning

Explanation:

Software development life cycle (SDLC) can be defined as a strategic process or methodology that defines the key steps or stages for creating and implementing high quality software applications.

Some of the models used in the software development life cycle (SDLC) are;

I. A waterfall model.

II. An incremental model.

III. A spiral model.

An options-based planning can be defined as a strategic management process which typically involves the maintenance of flexibility by investing simultaneously in a little amount (manner) in various alternative plans.

In this scenario, Adamdata, a cell phone brand, is planning to collaborate with a few companies that create software for cell phones. It wants to try different operating system software for its phones and then buy the company that manufactures the software that is most compatible with its phones. Therefore, Adamdata is most likely using options-based planning.

4 0
3 years ago
When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to
Leno4ka [110]

Answer: bundle Pricing

Explanation:

Bundle Pricing is a strategy that is used by companies whereby several products are all packages together for a lower price.

Here, we are informed that the special package for their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of bundle Pricing as the company can sell different products together at once.

4 0
3 years ago
Shondee Corporation uses the lower of cost or market and FIFO inventory methods. At the end of 2018, the FIFO cost of the ending
Assoli18 [71]

Answer:

reported as income for all three years   is $7,000

Explanation:

given data

cost of the ending inventory = $181,000

market value  inventory =  $160,000

to find out

Shondee Corporation must add income

solution

we get here Income per year that is

Income per year = (Value under FIFO Method - Value Under Cost Method ) ÷ Number of year      ..............................1

put here value we get

Income per year = \frac{181000 - 160000}{3}

Income per year =   \frac{21000}{3}

Income per year =  $7000

so reported as income for all three years   is $7,000

8 0
3 years ago
Ginger is a retired school teacher that who makes baked goods in her spare time. She occasionally delivers a batch of her cookie
AnnyKZ [126]

Answer:

d. Ginger cannot be sued under the theory of product liability.

Explanation:

Ginger sells goods to restaurant, and not to direct customers.

Customers can sue the restaurant owner for selling such baked products to them, and not to the direct manufacturer of such products.

Therefore, Ginger cannot be sued.

Although for any loss, the restaurant owner can sue Ginger, but not the direct customers under any scheme of Product liability. As the liability is of restaurant towards people consuming such baked products.

3 0
3 years ago
Choose a product or service you would like to analyze. For small companies, you may not be able to distinguish the product from
Ray Of Light [21]
Fixed rate products problem
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3 years ago
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