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
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
You might be interested in
Kristy visited a car showroom as she wanted to buy a new car. While she was looking at a new range of compact luxury sport sedan
adell [148]

Answer:

Option C.

Explanation:

In terms of making sales, Closing is a term that is used to refer to the moment when a customer decides to make the purchase.

There are numerous closing techniques, and the minor-point close is one of the techniques.

The minor-point close is the technique whereby the salesperson tries to intentionally gain the agreement of the customer or prospect on a minor point, and then uses it to assume that the sale is closed.

This technique is exemplified in the scenario presented above. Edward has concluded that Kristy wants to buy the black car, just because she has agreed that she liked it.

3 0
3 years ago
Which of the following workers are most likely to be part of a union? (Select four answers.)
Ira Lisetskai [31]

a high school teacher,an assembly line worker,a plumber,a police woman

3 0
3 years ago
Liberty, inc. has 2,500 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock o
BabaBlast [244]

Dividend to be paid to Preference shareholders in 2014= No of Preference shares*par value per share*Percentage of Shares

=2500*50*4%

=$5000

Dividends declared duing 2014=$3000, Thus Preference share holders need to be paid $2000 , in 2015, as preference shares are cumulative in nature.

Dividend to pe paid to Preference shareholders in 2015= $5000+$2000

=$7000.

Dividend to be paid to common share holders= $18000-$7000

=$11000

Thus B will be the answer.

8 0
4 years ago
Economic profit can be derived from calculating total revenues minus all of the firm's costs
Mice21 [21]

Answer:

Economic profit can be derived from calculating total revenues minus all of the firm's costs, Economic profit can be derived from calculating total revenues minus all of the firm's costs, including its opportunity costs. are two stark realities any business firm must recognize.

6 0
3 years ago
A righteous moralist is most likely to claim that a. inequalities are justified if they benefit the position of the least-advant
Murrr4er [49]

Answer:

d. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

Explanation:

The righteous moralist will claim that ethical standards which are appropriate as per the multinationals home country should be followed in the companies that are situated in foreign countries. The managers who belong to developed nations will consider following this approach. Ethical standard are moral principles that preside over a person’s behavior and manner or a company's activities.

3 0
3 years ago
Other questions:
  • The belief that successful performance will result in some outcome(s) is known as:
    7·1 answer
  • ___________ and links, such as personal network bluetooth devices, barcode readers, and handheld pdas, pose a security risk in t
    13·1 answer
  • Assuming a 24 hour operation in a warehouse, and an arrival following Poisson distribution with mean rate of 36 per day and serv
    13·1 answer
  • The Average Product of Labor is __________.
    14·1 answer
  • Fresh fish is not an effective form of money. What essential characteristic of money does fresh fish lack that most makes it ine
    12·1 answer
  • Global Services is considering a promotional campaign that will increase annual credit sales by $570,000. The company will requi
    15·1 answer
  • Calculate the selling price per unit charged by the outside supplier that would make ABC Company economically indifferent betwee
    12·1 answer
  • g you are deciding between a conventional air conditioner and a high efficiency (High SEER) unit. The high efficiency unit costs
    5·1 answer
  • Assuming a company has no other funding sources other than debt and common equity, what is the difference between enterprise val
    9·1 answer
  • Why do you think governments frequently attempt to control apartment rents but not house prices?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!