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
kozerog [31]
3 years ago
9

Superb Ltd. Is a well diversified company engaged in development of real estate, tourism and

Business
1 answer:
Fittoniya [83]3 years ago
8 0

Answer:

Since the company's debt level is very low, then it should probably issue new debt. The advantage of issuing debt is that debt is always cheaper than equity. E.g. the company issues a bond with a 10% coupon rate and the corporate tax rate is 30%. The after tax cost of debt = 10% x (1 - 30%) = 7%.

Issuing bonds with a 10% coupon rate is not something impossible, and actually the interest rate is pretty high. Some companies issue bonds at 4 or 5%. But to raise new capital offering a return on equity of 7% or less is extremely odd and difficult. Generally, the cost of equity of normal corporations tends to be about twice as higher as the cost of debt.

You might be interested in
Which one of the following is not an assumption of the EOQ model? Decisions for one item can be made independently of decisions
irga5000 [103]

Answer:

Quantity discounts can be taken advantage of for large lot sizes.

Explanation:

The EOQ model assumptions:

the order of one item does not intervene with the other.

The order will arrive without delay and with a specific amount of goods.

no losses or damage in transit

The EOQ does not consider the discount for large lot size, their formula does not consider the value of the goods:

Q_{opt} = \sqrt{\frac{2DS}{H}}

Its use: Demand of the good

cost of Setup, or ordering cost.

and Holding cost, the cost of keeping the inventory

There is no variable to account for discounts for order size in this method

7 0
3 years ago
4. The finest veal is _______-fed. <br><br> A. field<br> B. grass<br> C. grain<br> D. milk
wlad13 [49]

Answer:

The finest veal is milk-fed.

Explanation:

3 0
4 years ago
Read 2 more answers
WHO WANTS POINTSS AND BRAINLIEST <br> CLICK ON MY PROFILE AND BE MY FRIEND
earnstyle [38]

Answer:

i will be ur friend :)

Explanation:

5 0
3 years ago
Read 2 more answers
What is a key difference between sending someone your Outlook contact and sending you Outlook business card
Natalija [7]

The key difference is that an outlook contact display only the email address and name through which they can connect with you but an outlook business card shows detailed information about your contact and your business.

<h3>What is an Outlook contact?</h3>

In Microsoft outlook, an outlook contact primarily shows your name, email address, and profile picture through which people can connect with you.

However, an outlook business card represents your business brand and shows detailed information about your contact and your business.

Therefore, the key difference is that an outlook contact display only the email address and name through which they can connect with you but an outlook business card shows detailed information about your contact and your business.

Learn more about an outlook contact here:

brainly.com/question/21263685

8 0
2 years ago
Explain briefly why social workers should take appropriate personal safety training and practice safety measures.
Nina [5.8K]

Answer:

Social workers should take appropriate safety training and practice safety measures because they are working with clients who may have a variety of issues.   Social workers work with people who may have mental illness or be under the influence of drugs or alcohol.  Social workers also visit client’s homes on their own, so it is essential for them to know how to be safe.

Hope it helps,

Please mark me as the brainliest

Thank you

5 0
3 years ago
Other questions:
  • Hamlet College recently purchased new computing equipment for its library. The following information refers to the purchase and
    11·1 answer
  • According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy th
    15·2 answers
  • To ________, a marketer would most likely ask target audience members whether they remember the message, how many times they saw
    8·1 answer
  • Identify the accounting concept that was violated in each of the following situations.1. Astro Turf Company recognizes an expens
    13·1 answer
  • The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units duri
    13·1 answer
  • Cold Spring produces premium bottle water. Cold Spring purchases artesian water, stores the water in large tanks, and then runs
    9·1 answer
  • The Wall Street Journal magazine offers a significant discount to students who purchase a one-year subscription. If the reason f
    6·1 answer
  • As the interest rate __________, the opportunity cost of holding money __________ and individuals choose to hold __________ mone
    11·1 answer
  • How does thinking at the margin change the decision-making process.
    7·1 answer
  • A leadership strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the i
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!