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max2010maxim [7]
3 years ago
10

Which of the following is most correct:Question 8 options:A firm with financial leverage has a larger equity multiplier than an

otherwise identical firm with no debt in its capital structure.The use of debt in a companys capital structure results in tax benefits to the investors who purchase the companys bonds.All else equal, a firm with a higher debt ratio will have a lower basic earning power ratio.All of the statements above are correct.Statements a and c are correct.
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
8 0

Answer:

A firm with financial leverage has a larger equity multiplier than an otherwise identical firm with no debt in its capital structure.

Explanation:

The equity multiplier basically tells us what portion of the company's assets were financed through equity, i.e. what portion was financed by the company's owners.

the formula to determine the equity multiplier = total assets / total equity

the higher the equity multiplier, the higher the return on equity (ROE), but a high equity multiplier (financial leverage) also increases the company's risk since eventually it might not be able to pay off its creditors if something goes wrong.

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Floors n’ More, Inc., hires Gordon to renovate Floors n’ Mores showroom. Gordon submits plans that Floors n’ More approves. Gord
gogolik [260]

Answer:

Yes Gordon can sue Floors n' Mores for the settlement of the contract keeping in mind that Gordon has made partial completion of the contract. Full payment would be determined based on the completion of the total work in line withe the plans submitted when the contract was signed

Explanation:

In order to understand the scenario in case if Gordon wants to sue Floors n Mores they can only be compensated for the amount of project completion in line to the expectations that matches to Floors n More.

For Example if 75% of the work is in line with the expectation of Floors N More then Gordon should be paid total amount payable multiply by 75%.

Usually in such cases if the contract is fulfilled to certain extent it is preferred to close the contract based on the %age of completion because major reconstruction, buying of fixtures and furniture was executed. Hence major risks and rewards were transferred to Floors n Mores.  

4 0
3 years ago
According to the enotes, what do you call inventory that is readily available on the retail shelf?
Tems11 [23]

Market Inventory is the inventory that is readily available on the retail shelf. Both the products that are on hand for sale and the raw materials required to make those products are considered inventory. On the balance sheet of an organization, it is categorized as a current asset. A business should generally avoid keeping a large volume of inventory on hand for an extended period of time.

The three different categories of inventory are raw materials, finished commodities, and work-in-progress. The first-in, first-out method, the last-in, first-out method, and the weighted average method are the three methods used to value inventory. As items are produced or acquired as needed, inventory management enables organizations to reduce inventory expenditures.

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8 0
2 years ago
Click to watch the Tell Me More Learning Objective 3 video and then answer the questions below. 1. On April 4, a $2,000 account
AleksandrR [38]

Answer:

The correct answer is debit to Bad Debt Expense.

Explanation:

Taking into account the nature of both accounts, the registration of an account receivable is considered an asset taking into account that it is a callable value for the sale of products or services on credit, for which reason it is recorded in the debit to increase the company rights. In the exposed case, where the debt is considered uncollectible after exhausting many resources, the record is to recognize an expense (debit nature), against a credit to the account receivable with the objective of recognizing in the accounting the loss in the expense and the cancellation of the right in the asset.

4 0
3 years ago
Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new produc
kherson [118]

Answer:

A. premarket testing.

Explanation:

The pre market testing is when people from a certain business send products to people that are the target of that product to see if they would use it, continue to use it and how much would they be willing to pay for that product, this is done prior to the launch of the product, in order to get to know better the consumer and how they can improve their product, also to see if it is viable to start mass production and launch it into the market, so what Lorraine is doing is premarket testing.

5 0
3 years ago
May a broker subtract desk expenses from an independent contractor's commission check?
Pavel [41]

Sales representatives and brokers should work under a signed labor agreement that may or may not permit broker deductions.

How Do Brokers Work?

A broker is a person or business that stands between a potential investor and a securities exchange. Individual traders and investors require the services of exchange members since securities exchanges only accept orders from people or companies who are members of that exchange.

Brokers offer that service and are paid in a variety of methods, including commissions, fees, or payments from the exchange itself. To assist investors in deciding which broker is best for them, Investopedia routinely examines all of the major brokers and keeps a list of the top online brokers and trading platforms.

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7 0
1 year ago
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