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slavikrds [6]
3 years ago
5

True or false: a firm with a capital structure containing 70% retained earnings has a marginal cost of capital of $50,000. This

indicates that after the first $50,000 of capital raised, retained earnings can no longer provide the 70% equity position of the firms capital structure.
Business
1 answer:
ololo11 [35]3 years ago
6 0

Answer:

False

Explanation:

Marginal cost of capital is the total cost of debt and equity which is used to fund business operations. This denotes any additional capital raised to fund the business. If the capital structure has retained earnings of 70% and marginal cost of capital is $50,000. This means the additional cost to raise the fund will be $50,000.

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horizontal integration through m&a can help firms strengthen their competitive position by increasing the differentiation of
kotegsom [21]

Increased Differentiation is competitive position by increasing the differentiation of their product and service offerings.

What is Increased Differentiation?

The key characteristic(s) that set one company's goods or services apart from those of its rivals are referred to as that company's products. Successful product diversification increases sales and customer loyalty.

A product differentiation strategy includes identifying and outlining a company's or product's distinctive features as well as the most critical distinctions between it and its rivals. Creating a strong value proposition and unique selling concept for a product or service is essential to making it appealing to a target market or audience.

If done successfully, product diversification might provide the product's seller a competitive edge and eventually increase brand recognition. The quickest high-speed Internet connection and the most cost-effective electric car on the market are two instances of different commodities.

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4 0
1 year ago
Simon Company’s year-end balance sheets follow.
klemol [59]

Answer:

The answer is given below;

Explanation:

Days sales in inventory-2017= Average Inventory/Cost of goods sold*365

                                =(115,000+85,000)/2/(458,674)/365

                                =(100,000/458,674)*365

                                =80 days

Days sales inventory 2016= (85,000+56,000)/2/(385,686)*365

                                            =(70,500/385,686)*365

                                             =67 days

3 0
2 years ago
Need help asap lol help lol lol
brilliants [131]

C,  because debtors like having narrower debts.

3 0
3 years ago
Read 2 more answers
Antonio and Barbara are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000 at the ti
NikAS [45]

Answer: c. $20,000

Explanation:

The Loss on Realization is monies accrued after assets have been sold off at less than their original value and in Calculating it, the following formula is used,

Loss on realization = Total Capital Balances after payment of liabilities minus - balance

Slotting in the figures therefore we have,

Loss on realization = $40,000 + $70,000 - $80,000

= $30,000 was the total loss on Realization

Seeing as Antonio and Barbara are partners who share income in the ratio of 1:2 we allocate to Barbara as follows,

Barbara = $30,000 * 2/(1+2)

= $20,000

Therefore option C is correct.

6 0
3 years ago
Julia
Nat2105 [25]

Answer:

good morning I hope you l I e for the update on the answer to the answer to the question on the answer to the question on the answer to the question on the answer to the question on the

4 0
2 years ago
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