Answer:
There is a difference between theory and practice because the theory states <u><em>with taxes implies that firms should issue maximum debt</em></u><em> </em>but in practice, <u><em>this does not occur because it will result in bankruptcy if firms are issuing maximum debt.</em></u><em> </em>There should be a balance between how much debt is acquired and how much equity is taken. Therefore bankruptcy becomes a cause of concern if maximum debt is issued.
Answer:
Option C is the right answer
Explanation:
In this question, we are asked to state what happens in a transaction given some level of information.
Firstly, we need to understand what a certificate of deposit is. A certificate of deposit referred to as CD is a kind of bank product that stipulates that a customer has agreed to leave a certain amount of money in the bank for a particular period of time untouched at an interest rate higher than normal and otherwise tagged as premium.
Now, it must be stated that it was after he was issued that there was a drop in prices. Whatever happens during the drop will not affect him and would be the bank’s concerns simply because his own rate had been predetermined and nothing could change this as he had been issued a contract to that affect.
A drop in price will thus make his initial deposits higher now since there is a drop in price will generally, the bank will bear the brunt of the drop in price hence, losing
Answer:
it has flexibility in setting prices of its products.
Answer:
dividend payment = $6
Explanation:
given data
sell = $65
pay = $65.74
require a return = 8%
solution
we will use here present value formula that is express as
current stock price ( present value ) = 
........................1
$65.74 = 
here d is dividend
solve it we get
d = $6.00
so dividend payment = $6
