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natka813 [3]
3 years ago
5

Which of the following statements is CORRECT?

Business
1 answer:
marusya05 [52]3 years ago
3 0

Answer:

D)The optimal capital structure is the one that simultaneously (i) maximizes the price of the firm's stock, (ii) minimizes its WACC, and (iii) maximizes its EPS.

Explanation:

When the weighted average cost of capital (WACC) decreases, the company's profit increases.

So a capital structure that minimizes the WACC will maximize its profits, leading to a maximization of the earnings per share (EPS) and the price of the company's stock. The more the company makes, the higher the price of its stock and the higher its EPS.

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Jeanne Edwards works as a campaign manager at Rainforest Alliance Trust, a forest protection organization in Indonesia. She is c
Ivahew [28]

Griffin and Powell ensures that all their CSR initiatives on forests are regularly and substantially publicized.

Answer: Option A.

<u>Explanation:</u>

If Griffin and Powell make publicize their CSR on a regular basis, this would be an evidence about the argument about the reason why Jeanne had picked up this company for making an ally with her own company to promote Eco friendly ways for working in the economy and to promote the other firms and competitors for also doing the same in the market.

CSR turn out to be a great and an effective way of checking how strong and established a particular company is.

3 0
3 years ago
Read 2 more answers
Barney decides to quit his job as a corporate accountant (which pays $10,000 a month) and go into business for himself as a cert
stiv31 [10]

Answer:

$11,875; $1,575

Explanation:

Total cost of starting an own business is as follows:

= purchase office supplies + monthly electricity bill has increased

= $75 + $50

= $125 per month

Total revenue = $12,000 per month

Opportunity cost refers to the cost of forgone something in order to choose some other alternative.

Opportunity cost or Implicit costs:

= Earning from Job + Income from garage apartment

= $10,000 + $300

= $10,300

(a) Barney's average monthly accounting profits:

= Total revenue - Total cost

= $12,000 - $125

= $11,875

(b) Barney's average monthly economic profits:

= Accounting profits - Implicit cost or Opportunity cost

= $11,875 - $10,300

= $1,575

5 0
3 years ago
State the accounting equation.
schepotkina [342]
Shareholders' Equity = Assets – Liabilities where the rearrangement reflects the residual claim of equity owners.
5 0
4 years ago
Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks i
koban [17]

Answer:

b. Stocks that outperform the index in March always underperform it in April.

d. Stocks that outperform the index in March always outperform it in April.

Explanation:

The Efficient market hypothesis states that in an efficient market, all the available information in the market are reflected in the prices of the stocks being traded. As such, all stock are fairly priced.

Stocks that perform in a certain way in March and then in another way in April are violations of the hypothesis. This is because if indeed the market was efficient, the prices would adjust to reflect the different performances by month such that there would be no more fluctuations.

6 0
3 years ago
Activity-based costing strives to create an environment that
tankabanditka [31]

Answer:

D. encourages process-value analysis.

Explanation:

Activity based costing aims to allocate cost of different processes and activities to the department which utilizes the cost at maximum, on the basis of actual cost drivers.

Every activity has a cost driver, as for example for the expense or activity of rent is based on area allocated to each department thus cost driver here is area of the department.

Therefore, Activity based Costing encourages the process value analysis, which process is best.

It states which process added how much value to each product or department, it is a kind of process analysis.

Thus, correct option is D

4 0
3 years ago
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