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
A realtor is trying to predict the value of a home. He has quantitative data available and has evidence that the home price has
nadya68 [22]

Answer:

a. linear regression.

Explanation:

Based on the information provided within the question it can be said that in this scenario the best choice would be a linear regression model. That is because this type of approach deals with seeing to what extent there exists a relationship between two variables. Which in this case would be the quantitative data/prices and the square footage of the home.

6 0
3 years ago
When we are doing the double entry for the closing inventory, why do we credit the inventory? I understand why we debit the clos
anastassius [24]

Answer:

Debiting in this case means to add to the inventory. Therefore, crediting means that inventory was used up when closing inventory.

Explanation:

A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. ... A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

3 0
3 years ago
Wild Trails Inc., an adventure resort in Texas, has 500 shares of outstanding common stock and has not issued any preferred stoc
erma4kov [3.2K]

Answer:

$55

Explanation:

The earnings per share indicate the profit per outstanding stocks and it is calculated by dividing the net income by the number of shares of outstanding stocks. According to this,

Earnings per share= $27,500/500

Earnings per share= $55

Wild Trails Inc.'s earnings per share (EPS) is $55.

7 0
3 years ago
Ajax Inc. was formed on April 25 and elected a calendar year for tax purposes. Ajax paid $11,800 to the attorney who drew up the
Step2247 [10]

Answer: $5416.64

Explanation:

Based on the information given, $5000 will be deducted from its organizational cost of $17500, and we'll have $12500. Then, the capitalized cost over 6 months that's 180 days will be:

= Non deductible cost / 180 months

= $12500 / 180

= $69.44 per month

Since Ajax Inc began operation in July, the ammortization will be:

= $69.44 × 6 months

= $416.64

The amount that Ajax can deduct from its $17,500 organizational costs on its first tax return will be:

= $5000 + $416.64

= $5416.64

4 0
3 years ago
1.1. define the following concept social change
k0ka [10]

ANSWER:

Social change refers to any significant alteration over time in behaviour patterns and cultural values and norms. By “significant” alteration, sociologists mean changes yielding profound social consequences.

8 0
2 years ago
Other questions:
  • Assume a company pays out $100 in dividends in Year 1. What would the annual growth rate (rounded to the nearest 1%) for dividen
    13·1 answer
  • About how many unsuccessful suicide attempts occur annually in the united states? 30,000 120,000 1 million 2 million
    9·1 answer
  • Proponents of corporate social responsibility (csr) strongly believe in benevolence; however, they still want their businesses t
    11·1 answer
  • What types of crimes primarily affect<br> businesses? Give examples.
    12·2 answers
  • Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bear
    9·1 answer
  • After landing an interview with your dream company, you learn that the interview will consist of questions asking you to demonst
    9·1 answer
  • Food stamps” are part of what federal antipoverty program
    14·2 answers
  • What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Adm
    8·1 answer
  • On June 25, Ritts Roofing extended an offer of $250,000 for land that had been priced for sale at $300,000. On July 9, Ritts acc
    10·1 answer
  • the manufacturing overhead account shows debits of $240,000, $192,000, and $224,000 and one credit for $688,000. based on this i
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!