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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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Gemiola [76]

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3 years ago

Recognition of normal balances The following items appeared in the accounting records of the Tape Box, a retail music store that

WINSTONCH [101]

Answer:

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3 years ago

40 points fast easy question. ………….

Naddik [55]

It’s depends which artical your reading since you have to re read the book to answer.

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2 years ago

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The

dlinn [17]

Answer:

Selling price= 240*1.4= $336

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (252,000/30,000) + 2.1

Predetermined manufacturing overhead rate= $10.5 per machine hour

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Number of units in the job 10

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Now, we need to allocate overhead and determine the total cost:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 10.5*30= $315

Total cost= 675 + 1,050 + 315= $2,040

Finally, the unitary cost and selling price:

Unitary cost= 2,040/10= $240

Selling price= 240*1.4= $336

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3 years ago

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fgiga [73]

Answer:

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3 years ago