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Serjik [45]
3 years ago
15

Which of the following statements is CORRECT?A. Shareholder's equity is the residual value of a firmB. Net working capital must

be a positive valueC. An increase in cash reduces the liquidity of a firmD. Equipment is generally considered a highly liquid asset
Business
1 answer:
olga55 [171]3 years ago
4 0

Answer:

The correct answer is letter "A": Shareholder's equity is the residual value of a firm.

Explanation:

Shareholders' equity is a measure of a company's net worth. I can be calculated by subtracting the company's total liabilities from its assets. It is also understood as the <em>funds remaining after all creditors and debts are paid</em> that is why we could say it is the residual value of the firm.

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Whether or not to higher 100 new workers because if that fails 100 people will be without work.
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Trapper Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Und
AlladinOne [14]

Answer:

Plan I EPS = $2.19

Plan II EPS = $1.97

Explanation:

The computation of EPS for both Plan I and Plan II is shown below:-

                               Plan I                Plan II

Expected EBIT      $700,000       $700,000

Less Interest                                 $227,200

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Profit before tax a   $700,000      $472,800

Less: Tax

Earning to equity

shareholder b           $700,000      $472,800

Number of equity

Shares (a ÷ b)              $2.19             $1.97

Therefore for Plan I the EPS = $2.19 and for Plan II the EPS = $1.97

6 0
2 years ago
According to Miles and Snow, a company that operates in at least two different product-market areas in which one product is stab
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Business cycles ___________.
Amanda [17]

Answer:

Are ups and downs in the level of economic activity

Explanation:

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(i) Gross domestic product (GDP)

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Answer:

increases as more people use them.

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For example online services like LinkedIn and Twitter benefit from this type of framework. The more users that use these software th more the business gains.

7 0
3 years ago
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