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Dmitrij [34]
3 years ago
10

Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The stock is

sue would have no effect on total assets, the interest rate Taggart pays, EBIT, or the tax rate. Which of the following is likely to occur if the company goes ahead with the stock issue?
a. The ROA will decline.
b. Taxable income will decrease.
c. The tax bill will increase.
d. Net income will decrease.
e. The times interest earned ratio will decrease.
Business
1 answer:
shutvik [7]3 years ago
4 0

Answer:

Option c. is correct

Explanation:

A stock is an investment that denotes an ownership share in a company. Purchasing a company’s stock means purchasing a small piece of that company that denotes a share.

In the given question, if the company goes ahead with the stock issue that would not affect total assets: the interest rate Taggart pays, EBIT, or the tax rate then the tax bill will increase.

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Quentin operates an ice cream franchise that has shops throughout the United States. CoolCream Co., the franchisor, supplies the
denpristay [2]

Answer:

The correct answer is D

Explanation:

Arrangement of  manufacturing or processing-plant is the one which defines the relationship where the franchisor transmits or shifts to the franchisee for the essential ingredients or for the specifications in order to make the specific product. And then the franchisee will market at the retail or wholesale level as per the standards of the franchisor.

So, in this situation, the franchisor supplies the essential ingredients of the franchisee for his store and then the franchisee sold to customers the ice cream. Therefore, this relationship is regarded as manufacturing or processing-plant arrangement.

6 0
3 years ago
What term means an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of​ u
kirill115 [55]

Answer:

hyperinflation

Explanation:

Hyperinflation is a term in economics that denotes an out-of-control, rise in prices of goods and services . When the inflation rate is rapidly rising, say by more than 50% per month, then it is a case of hyperinflation.

Hence, hyperinflation is an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of​ use.

8 0
3 years ago
True or False: Market segmentation is the process of dividing the market into groups of customers based on their needs, wants, a
nalin [4]

Answer:

true

Explanation:

Market segmentation is the process of dividing prospective consumers into different groups depending on factors like demographics, behavior and various characteristics.

3 0
2 years ago
__________ is a strategy based on the use of IT to reduce the costs associated with the product assembly process or the way serv
xeze [42]

Answer:

Flexible manufacturing

Explanation:

A flexible manufacturing system (FMS) refers to a manufacturing system that has a certain degree of flexibility to swiftly respond to unpredicted changes in the manufacturing orders and processes. FMS generally result in a increase in labor productivity and machine efficiency, as well as shorter lead times and increased production rate. If well executed, FMS should provide the same benefits as economies of scale but without the large scale production.

3 0
3 years ago
Alex doesn't care about where he lives, but he does care about what he eats. Alex spends all his money on restaurant meals at ei
Levart [38]

Answer:

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5 0
3 years ago
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