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3 years ago

Having in mind the pandemic, should a company reduce its leverage in order to add value to its shareholders? and why?

Business

1 answer:

tensa zangetsu [6.8K]3 years ago

8 0

Answer:

No, taking into account the pandemic, companies should not reduce their leverage, as this would make it very difficult for small and medium investors to invest in a context of lack of income and shortage of available circulating money.

Therefore, leverage implies the possibility for investors to access the necessary funds to be able to invest their money, without the need to dispose of their savings or the money they use for essential activities.

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You decide to invest in a period annuity that offers 4.5% APR compounded monthly for 20 years. How much money will you need to i

USPshnik [31]

$553,229.03 this is the answer for APEX

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3 years ago

Claire always liked lands' end raincoats, so when she was shopping for a winter coat, she ordered one from lands' end without th

monitta

True. This demonstrates that buyer has confidence on buying products that are branded. She has trust that the product can satisfy her because the brand already earned a reputation in its field. It also shows that she passed scrutiny on the bought product.

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3 years ago

Read 2 more answers

During 20x8, a firm discontinued a component qualifying for separate disclosure within the income statement. The disposal was co

MAVERICK [17]

Answer:

IFCO for 20x7 as it is reported comparatively in the 20x8 statements = $5,600
IFCO for 20x8 = $6,800

Explanation:

1) IFCO for 20x7 as it is reported comparatively in the 20x8 statements, should not include the $400 operating income from the component = $6,000 - $400, or $5,600.

2) IFCO for 20x8 should not include the gains resulting from the disposal of the component nor the losses generated by it = $7,000 - $300 + $100 = $6,800

4 0

4 years ago

The following events took place at a manufacturing company for the current year:

PilotLPTM [1.2K]

Answer: $25,369.50

Explanation:

GIVEN THE FOLLOWING :

Purchased direct material = $97,000

(2) Incurred labor costs as follows: (a) direct, $58,000 and (b) indirect, $15,600.

(3) Other manufacturing overhead was $109,000, excluding indirect labor.

(4) Transferred 80% of the materials to the manufacturing assembly line.

(5) Completed 65% of the Work-in-Process during the year.

(6) Sold 85% of the completed goods.

(7) There were no beginning inventories.

Ending work in process inventory is calculated by;

(Beginning inventory + 0.8(direct material purchased) + direct Labor + (indirect labor + other manufacturing overhead)) × percentage Work in process

($0 + (0.8×97000) + 58000 + (15600+109000))×0.65

=($0 + $77,600 + $58,000 + 124600)×0.65 = $169,130

Ending WIP Inventory = (100-85)% × $169,130

0.15 × $169,130 = $25,369.50

6 0

3 years ago

One year ago, you entered into a futures contract to buy 100,000 euros at a futures contract price of $1.22, with a settlement d

Law Incorporation [45]

Answer:

Profit of $3000

Explanation:

The exchange rate of a future contract is usually fixed at the time when the contract is buy 100,000 euros at a futures contract price of $1.22.

The Value in dollars at the time is: $122,000

At the maturity spot rate of the euro is $1.25.

The value of the contract is: $125,000

The difference:

$125,000-122,000

=$3000.

Since the maturity spot rate is higher, there is a profit of $3000 from speculating with the futures contract.

8 0

3 years ago