1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
klasskru [66]
3 years ago
10

In a world with no taxes, MM show that a firm's capital structure does not affect the firm's value. However, when taxes are cons

idered, MM show a positive relationship between debt and value, i.e., its value rises as its debt is increased.A. TrueB. False
Business
1 answer:
faltersainse [42]3 years ago
3 0

Answer:

True

Explanation:

According to MM, without taxes, the market value of the company is not affected by capital structure. As a result, the WACC is unaffected by capital structure. Here, the value of a company is determined by cash flows.

In the case where there is tax, the value of a company with debt is greater than that of the same company without debt for the same level of income.

You might be interested in
Coronado Industries had the following accounts and balances:
AysviL [449]

Answer:

15250

Explanation:

efgyyuhhfdfujhhjhhrfdfghuikjhgfdfj

7 0
2 years ago
Read 2 more answers
Why is advertising the most important function of marketing?
Drupady [299]
Advertising keeps consumers informed about new products in the market at their disposal.
8 0
3 years ago
False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash coll
gayaneshka [121]

Answer:

$607,000

Explanation:

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account.

Sales and cash collections from customers during the year were $650,000 and $610,000, respectively.

False Value estimates that 6% of all sales will be returned.

During 2016, customers returned merchandise for credit of $28,000 to their accounts.

False Value's 2016 income statement would report net sales of:  

The closing balance in the allowance for sales returns account will be: 32,000 opening balance + 6% 0f 650,000 - sales returns within the year of 28,000 = $43,000

Hence Net Sales will be 650,000 - 43,000 = $607,000

5 0
3 years ago
At the high level of activity in November, 12000 machine hours were run and power costs were $20000. In April, a month of low ac
Salsk061 [2.6K]

Answer:

$6,500

Explanation:

For computing the estimated fixed cost, we have to determine the variable cost per hour which is shown below:

Variable cost per hour = (High power cost - low power cost) ÷ (High machine hours - low machine hours)

= ($20,000 - $11,000) ÷ (12,000 hours - 4,000 hours)

= $9,000 ÷ 8,000 hours

= $1.125

Now the fixed cost equal to

= High power cost - (High machine hours × Variable cost per hour)

= $20,000 - (12,000 hours × $1.125)

= $20,000 - $13,500

= $6,500

4 0
3 years ago
When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day.
just olya [345]

Answer:

0.5

Explanation:

A screenshot is attached to get the full solution

Since the coefficient is < 1, it is inelastic

8 0
3 years ago
Other questions:
  • An investment of $115 generates after-tax cash flows of $50 in Year 1, $90 in Year 2, and $150 in Year 3. The required rate of r
    9·1 answer
  • Which method for calculating a credit card balance does not take into account the purchases or the payments made during the curr
    5·2 answers
  • basic commodities such as farm goods are bought and sold in which market structure? a. perfect competition b. monopoly c. oligop
    15·1 answer
  • What is the difference between a shortage and scarcity?
    12·2 answers
  • McCaffrey Corporation owned 15,000 shares of Harper Corporation’s $5 par value common stock. These shares were purchased in 2015
    6·1 answer
  • Popular Company utilizes a calendar year as its fiscal year and depreciates plant assets using the straight-line method. On Janu
    12·1 answer
  • A nurse who is a chronic complainer comes back from lunch 20 minutes late. When confronted by the manager, the nurse says, "The
    5·1 answer
  • Kevin durant vs giannis who winning gets 150m tommrow after the game lol
    15·2 answers
  • Last month Peggy Company had a $30,310 profit on sales of $350,000. Fixed costs are $92,190 a month. What sales revenue is neede
    7·1 answer
  • M and M, Inc. produces a product that has a variable cost of $4.20 per unit. The company's fixed costs are $45,600. The product
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!