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lozanna [386]
3 years ago
15

According to Modigliani and Miller capital structure theory: Group of answer choices the cost of equity capital increases as a f

irm take on more debt financing. the value of a levered firm decreases relative to the value of an unlevered firm as corporate tax rates increase. the value of the firm is independent of capital structure in a world with perfect capital markets and corporate taxes. firms should employ as close to 100% debt financing as possible in a world with perfect capital markets and corporate taxes only. firms should employ 100% equity financing in a world with perfect capital markets and no taxes
Business
1 answer:
professor190 [17]3 years ago
7 0

Answer:

the value of the firm is independent of capital structure in a world with perfect capital markets and corporate taxes.

Explanation:

The Modigliani-Miller theorem refers to a theory where the capital structure does not have any impact on it. It is totally independent

So as per the given options, third option is correct as the capital structure i.e. combination of the equity and the debt should have no impact under this theory

Therefore the third option is correct

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Jane is 20 years old and is a sophomore at Lake University. She is a full-time student and does not have any gross income. Jane
OLga [1]

Answer:

c. Jane grandparents cannot claim her as a dependent because Jane provided more than half of her own support.

Explanation:

Based on the information given the statements regarding the dependency rules for Jane that is true is Jane grandparents cannot in any way claim Jane as a dependent reason been that Jane provided more than half of her own support due to the fact that she her s total support for is the amount of $30,000 which as well include a scholarship of the amount of $5,000 to help cover tuition in which Jane used the amount of $12,000 of her savings while her grandparents on the other hand only provided the amount of $13,000 out of the Total support of $30,000.

3 0
3 years ago
Freya plans to invest $3,200 a year for 25 years starting at the end of this year. How much will this investment be worth at the
tekilochka [14]

Answer:

$240,885.11

Explanation:

The formula to be used is = annual payment x annuity factor

Annuity factor = {[(1+r) ^N ] - 1} / r

R = interest rate = 8.2 percent

N = number of years = 25

[(1.082^25) - 1 ] / 0.082 = 75.276598

75.276598 x $3,200 = $240,885.11

I hope my answer helps you

6 0
3 years ago
Cash dividends paid on capital stock would be reported in the statement of cash flows in a.the Cash flows from investing activit
Basile [38]

Answer: The answer is c.the Cash flows from financing activities section

Explanation: Cash flows from financing activities section of the statement of cash flows provides an insight on how the company is funded. It shows the net cash flows used in funding the company. Transactions that appear under that section comprise debt, equity and dividends.

Investors analyze this section of the cash flows to know how the capital structure of an organization is managed to further understand the financial strength of the organization.

3 0
3 years ago
Help pls
Gwar [14]

Answer:

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Reliability can be estimated by comparing different versions of the same measurement. Validity is harder to assess, but it can be estimated by comparing the results to other relevant data or theory.

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Students arrange information hierarchically, cate- gorically, sequentially, or in other ways. They discover and depict the overall structure of the material as well as how discrete pieces of information fit together. They organize and reorganize generalizations, principles, concepts, and facts.

Why should a researcher organize their data?

Choosing a logical and consistent way to name and organise your files allows you and others to easily locate and use them. ... Organising your files carefully will save you time and frustration by helping you and your colleagues find what you need when you need it.

What are different methods for organizing information?

Chronological Patterns. Sequential Patterns. Spatial Patterns. Compare-Contrast Patterns. Advantages- Disadvantages Patterns. Cause-Effect Patterns. Problem-Solution Patterns. Topical Patterns.

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now i hope this helps you

3 0
2 years ago
If c corporations retain their after-tax earnings, when will their individual shareholders be taxed on the retained earnings?
stepan [7]

When will shareholders of C businesses that retain their post-tax profits be subject to individual income tax on those retained profits. When shareholders sell their shares for a profit, they must pay taxes.

C corporations will pay tax at a corporate rate of 21% as of the 2020 tax year (down from 35 percent in 2017). Then, dividends are taxed at the owner's personal marginal tax rate, which is up to 37%. (depending on the tax bracket).

Distributions of money or other assets to shareholders will lower the corporation's earnings and profits (E&P), but they won't affect its taxable income. Taxes are paid by the corporation on its taxable income and by the shareholders on any dividends they receive.

To learn more on Retained Earning

brainly.com/question/14529006

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4 0
2 years ago
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