Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
Thanks!
To answer the question, I assume that the given interest is annual and simple interest. The interest acquired by the investment in simple interest is given by the equation,
I = P x i x n
where I is interest, P is present worth, i is rate and n is number of interest period. Assuming that a year is 360 days,
I = ($700) x (0.105) x (90/360)
The answer is 18.375. Therefore, the interest due is approximately equal to $18.38.
Answer: judgemental appraisal method.
Explanation: judgemental appraisal method is a form of performance appraisal—a systematic, general and periodic process that assesses an job performance and productivity of employees in comparison to certain pre-established criteria and organizational objectives. The judgmental appraisal method is applied when assessing individual employee's job performance and productivity in areas that are difficult to measure. Vast majority of information gathered and delivered using this technique is subjective though there may be some parts that are objective.
By requesting that each subordinate be rated (performance evaluation) according to how closely the appraisal (pre-determined criteria) describes the employee, the company new form is an example of a judgmental appraisal method.
School district administrators
Hello!
I believe the correct answer is: Demand curve.
I hope that was helpful! c:
