Answer:
C. Individuals and corporations borrow at the same rate.
Revised Question:
A key underlying assumption of MM Proposition I without taxes is that:
A. financial leverage increases risk.
B. individuals can borrow at lower rates than corporations.
C. individuals and corporations borrow at the same rate.
D. managers always act to maximize the value of the firm.
E. corporations are all-equity financed.
Explanation:
Modigilani-Miller gave theories about the optimal capital structure of the firms. They proposed thier theories under <em>taxes and and without taxes</em> economies. They gave two propositions under each economy.
MM proposition I without taxes states that value of of firm with equity finance and value of a firm with debt finance are equal. So the capital structure of a firm is irrelevant in decision making.
The underlying assumption of the proposition is:
Presence of asymmetric information due to which, investor's and firm's cost of borrowing money is same.
Answer:
The appropriate alternative is option B (ERP system).
Explanation:
- The ERP system has become a corporation software platform that has the core purpose of integrating various processes and employees throughout the financial institution into a standard desktop software application that might boost the growth of the agency.
- They encourage organizations to implement resource planning by assimilating all of the mechanisms necessary to execute one‘s corporations with such a single platform.
The two other possibilities are not connected to the condition in question. Therefore the choice above is the perfect one.
A, the rent. If confused between A and B, remember that electricity is a cost that can fluctuate over the amount of business, as well as C and D.
It would be overdraw because you’re gonna take money out of your bank account etc.
Based on the beginning retained earnings balance and the net income as well as dividends, the retained earnings balance will be $1,585,500.
<h3>How much are retained earnings on Dec. 31?</h3>
This can be found as:
= Beginning retained earnings + Net income + dividends paid
Solving gives:
= 1,250,000 + 287,500 + 48,000
= $1,585,500
Find out more on retained earnings at brainly.com/question/25998979.
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