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Svetach [21]
3 years ago
10

Assume capital markets are perfect. in what way does a? firm's value? and/or wacc change by relying more on debt? capital

Business
1 answer:
BigorU [14]3 years ago
5 0
When a company rely on more debt, the value of the company will fell down at the perception of potential investors.
To determine the risk of investments, investors often compared the ratio between total assets and total debts (assets to debt ratio). Companies with low assets to debt ratio is regarded as a risky investment because it indicates that the company still has not enough capability to generate enough profit to buy its own assets
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Answer:A

Explanation:

Persuading is a way to attracter customers

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3 years ago
A letter to your headmaster telling him the reasons you want to change your course​
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Respected ________, I hope you are doing great in health. I am writing this letter to you so that I can ask you the permission of course change. As I am studying (Subject or course name) from last six months or one year and continuously my GPA is Decreasing and the studies are getting difficult as the semesters are passing.

Hope this helps :)

6 0
3 years ago
If you are busy with another customer when someone comes in, what can you do? select one:
prohojiy [21]
Ab. smile at them and make eye contact while you continue to help the first customer so they know they were recognized and not being ignored.
7 0
4 years ago
If a U.S. citizen could buy £25,000 for $100,000, the rate of exchange for the pound would be
Natalka [10]

Answer:

<u>The rate of exchange for the £ is US$ 4</u>

Explanation:

1. Let's check the information provided to answer the question correctly:

Amount the U.S. citizen want to buy in £ = 25,000

Amount the U.S. citizen will pay in US$ = 100,000

2. Let's calculate the rate of exchange for the British pound £, this way:

Rate of exchange = Amount in US$/Amount in £

Rate of exchange = 100,000/25,000

<u>Rate of exchange = 4 US$ per £</u>

We can also express the rate for the US$, this way:

Rate of exchange = Amount in £/Amount in US$

Rate of exchange =25,000/100,000

Rate of exchange =  £ 0.25 per US$

5 0
3 years ago
The following are the transactions of Spotlighter, Inc., for the month of January:
coldgirl [10]

Answer:

Spotlighter, Inc.

Cash

Account Titles     Debit    Credit

Beginning balance $0

Notes Payable   $4,740

Common stock $5,430

Equipment                      $1,000

Supplies                          $1,100

Ending balance             $8,070

Notes Payable

Account Titles     Debit    Credit

Beginning balance $0

Cash                               $4,740

Equipment                        1,600

Ending balance  $6,340

Common stock

Account Titles     Debit    Credit

Beginning balance               $0

Cash                              $5,430

Equipment

Account Titles     Debit    Credit

Beginning balance $0

Cash                 $1,000

Notes Payable $1,600

Ending balance            $2,600

Supplies

Account Titles         Debit    Credit

Beginning balance $0

Cash                       $1,100

Accounts Payable $1,500

Ending balance                   $2,600

Accounts Payable

Account Titles     Debit    Credit

Beginning balance              $0

Supplies                        $1,500

Ending Balance $1,500

Explanation:

1) Data and Transaction Analysis:

a. Cash $4,740 Notes Payable $4,740

b. Cash $5,430 Common stock $5,430

c. Equipment $2,600 Cash $1,000 Notes Payable $1,600

d. Supplies $1,100 Cash $1,100

e. Supplies $1,500 Accounts Payable $1,500

6 0
3 years ago
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