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Sphinxa [80]
3 years ago
11

The primary weakness of EBITminusEPS analysis is that

Business
1 answer:
STatiana [176]3 years ago
3 0

Answer:

D. it ignores the implicit cost of debt financing.

Explanation:

EBIT-EPS analysis is a technique used to determine the optimal capital structure in which the value of earnings per share (EPS) has the highest amount for a given amount of earnings before interest and taxes (EBIT).

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The objectives of internal control are to a.prevent fraud and promote the social interest of the company b.provide control over
Marina86 [1]

Answer:

d.provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with.

Explanation:

The purpose of internal controls is to provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with.

By definition: An internal control is a procedure or policy put in place by management <u>to safeguard assets, promote accountability, increase efficiency, and stop fraudulent behavior.</u>

Summarily, internal controls are put in place as a process to prevent employees from stealing assets or committing fraud.

4 0
3 years ago
What is the weighted average cost of capital (WACC) for ABC Limited which has the following capital structure? $5m of equity wit
katrin2010 [14]

The weighted average cost of capital (WACC) for ABC Limited is 12.63%

The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.

It is determined as the sum of the cost of each source of finance multiplied by their respective weights in the firm's capital structure.

By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.

WACC=(weight of equity*cost of equity)+(weight of mezzanine finance*cost of mezzanine finance)+(weight of debt*cost of debt)

weight of equity=equity finance/total finance

cost of equity=15%

weight of mezzanine finance=mezzanine finance/total finance

cost of mezzanine finance=9.5%

weight of debt of finance=debt finance/total finance

total finance=$5m+$2m+$1m

total finance=$8m

WACC=($5/$8*15%)+($2/$8*9.5%)+($1/$8*7%)

WACC=12.63%

Find further guidance on weighted average cost of capital's computation in the link below:

brainly.com/question/25566972

#SPJ1

7 0
2 years ago
If buyers’ incomes increase, the demand curve will shift to the _____ and the prices will _____.
taurus [48]

Answer:

Demand curve will shift to the right, the prices will increase.

Explanation:

An increase in the income of the consumer of will cause the demand curve of the consumer to shift to the right. This rightward shift in the demand curve will cause the demand curve to intersect the supply curve at a higher point.  

As a result, the equilibrium price level and the equilibrium quantity will increase. A decline in the income, on the other hand, will cause both quantity and price to decline because of a leftward shift in the demand curve.

8 0
3 years ago
What is the purpose of the Securities and Exchange Commission? (SEC) A. It acts as a mediator between labor unions and employers
umka2103 [35]

Answer:

Option C is correct because the primary objective of the SEC is to monitor the compliance with laws and ensures that the corrective actions are taken once the irregularities are found regarding the stocks, derivatives and the matters related to the sale and purchase of securities.

3 0
3 years ago
Read 2 more answers
Tina designed a new type of handbag that has proven to be very popular. She begins manufacturing these handbags on a large scale
kykrilka [37]

Answer: Market the product in it's name.

Explanation:

A franchise is an arrangement to run a business under an existing business name to leverage on the name success for a high performance in return for a fee payable to the existing business name used for ones operations.

4 0
3 years ago
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