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
kirill115 [55]
2 years ago
5

The combination of debt financing and equity financing that maximizes a firm's value is known as its:

Business
1 answer:
ohaa [14]2 years ago
5 0

Answer:

optimal capital structure

Explanation:

optimal capital structure can be regarded as a combination of

of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.

You might be interested in
The In ternet is a worldwide communications network. Which device connects computer networks and computer fa cilit ies? The Inte
son4ous [18]

computer network and computer facilities is called internet protocol

7 0
3 years ago
Produced by paul, the ____________ album was recorded between 2/77 and 1/78 in both the uk and off the virgin islands during six
belka [17]

Answer:

London town

Explanation:

8 0
3 years ago
A financial analyst is in the process of reviewing four investments projects for one of his clients. The net present cash values
inysia [295]

Answer:

Consider the following calculation

Explanation:

All projects having positive NPVs, thus all projects are feasible.

(All figures are in $' million)

Funds required to invest in all projects are

First year = 6 + 2 + 4 + 10 = 22 & available fund for first year is only 20.

Second year = 8 + 4 + 8 + 6 = 36 & available fund for second year is only 13.

In these type of situations we use Profitability Index to decide which projects are selected and which are to be skipped.

Profitablilty index = PV of cash inflow/ PV of cash outflows

But in this such information is not given to calculate Profitability index, thus we are calculating here NPV per One $ of investment.

thus NPV per One $ of investment = NPV of project / Investment in Project

Note: We are taking here value of investment in project for both two year with out taking effect of time value of money as no discount rate is provided in the question.

CHECK THE EXCEL ATTACHED

Total fund available with investor = 20+13 = 33

Total fund required for Project 4 & Project 1= 16 + 14 =30

thus he can invest in only project 4 & Project 1, for investing in next profitable project i.e. project 2 he requires $6 million but he has only $3 million in his hands.

Thus the optimal solution for the client is to invest in Project 4 & Project 1.

Thus Funds available in first year = 20, Investment in First year = 10+6 = 16, Funds remains in hand =4

Funds available in second year = 4+ 13= 17, Investment in second year =6+8= 14, funds remains in hand = 3

NPV from total investment = 80 + 50 = 130

Download xlsx
5 0
3 years ago
On Jan. 3, Gourmet Cakes sold $15,000 of merchandise on account to Jerry Hines. On Jan. 10, Jerry returned $2,000 of the merchan
Sonja [21]

Answer:

sales returns & allowance     2,000 debit

            accounts receivables              2,000 credit

Inventory                                    500 debit

             COGS                                        500 credit

-to record the return of goods from Jerry Hines--

Explanation:

As the returned goods are not reported as failure or malfunction just; the customer returned as exceeds his needs, we can return them to goods ready to sale thus; inside inventory account.

We will decrease the account receivable, our COGS and increase our inventory

4 0
3 years ago
Martinez Manufacturing applies overhead based on direct labor hours. The company estimates that their overhead for the year will
aev [14]

Answer:

The correct answer is C: underapplied by $2,500

Explanation:

Giving the following information:

Martinez Manufacturing applies overhead based on direct labor hours.

The company estimates that their overhead for the year will be $180,000 and that they will use 72,000 direct labor hours.

During the year, Martinez Manufacturing used 75,000 direct labor hours and actual overhead costs were $190,000

We need to calculate if the overhead was under or over applied and in what amount.

Predetermined overhead rate= total estimated manufacturing overhead for the period/ total amount of allocation base

Predetermined overhead rate= 180000/72000= $2.5 an hour

Now, we can calculate the amount of overhead allocated:

Overhead allocated= 75000 hours*2.5= $187,500

Over/under applied= actual overhead - allocated overhead= 190,000 - 185,500= $2,500 underapplied

7 0
3 years ago
Other questions:
  • Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Jan
    6·1 answer
  • Now suppose firm x undertakes a process innovation that reduces its marginal cost of production from $20 to $15. the fixed cost
    5·1 answer
  • A(n) ________ collects data from various key business processes and stores the data in a single comprehensive data repository, u
    10·1 answer
  • In the current year, Hermanson Corporation reported net income of $240,000, paid dividends of $25,000 on common stock, and $40,0
    5·1 answer
  • On September 1, Ziegler Corporation had 53,000 shares of $5 par value common stock, and $159,000 of retained earnings. On that d
    10·1 answer
  • Boone Company purchased a piece of machinery by paying $18,000 cash. In addition to the purchase price, the company incurred $80
    14·1 answer
  • In January 2021, Summit Department Store sells a gift card for $50 and receives cash. In February, 2021, the customer comes back
    9·1 answer
  • What is the most likely reason an HR manager would seek to adjust the
    13·2 answers
  • The Federal Reserve would most likely adopt a contractionary monetary
    10·2 answers
  • when a bond is purchased for an investment, the purchase price, minus the brokerage commission, plus any accrued interest is rec
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!