Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
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Answer:
$76,050
Explanation:
Given that,
cash price = $60,700
assumed accrued taxes = $5,260
attorney’s fees = $2,170
real estate broker’s commission = $3,310
clearing and grading = $4,610
Cost of the land:
= cash price + assumed accrued taxes + attorney’s fees + real estate broker’s commission + clearing and grading
= $60,700 + $5,260 + $2,170 + $3,310 + $4,610
= $76,050
A
A lot of Money in that business
Answer: aye im 15 i can drive and no i dont live in florida
Explanation: