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Igoryamba
3 years ago
11

Let's say there's a company that can fully tax deduct the interest on its loans. If this company borrows more, then the discount

ed value of the tax shield on its loans will _____ and the discounted value of the financial distress costs will _____. g
Business
1 answer:
umka21 [38]3 years ago
5 0

Answer:

High

Low

Explanation:

When a company borrows funds it has opportunity to avail tax shield on the interest amount of the borrowing fund. If the company borrows more fund then the discounted value of tax shield will increase while the financial distress cost will decrease.

You might be interested in
A company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so fort
kobusy [5.1K]

Answer:

Vendor analysis

Explanation:

Organizational Buying Process

This is simply refered to as the decision making process where organizations state the need for purchased products and services and thereafter identify or evaluate to choose among them. There are 3 influences purchase type. They includes: structural and behavioral.

Vendor analysis in organizations buying influence is simply known as the behavioral needs of the buyer.

ethical conflicts may sometimes arise in buyer-supplier relationships. This can help the buying organization to manage spending

Vendor Analysis

This is simply refered to as a formal rating of suppliers on all important areas of performance.

The usual goal of a vendor analysis is to lower the total costs of a purchase.

The steps in Organizational buying process. They includes:

1. Recognize the product needed

2. Vendor analysis

3. Purchase decision

4. Post purchase evaluation.

3 0
3 years ago
The Peridot Company purchased machinery on January 2, 2019, for $800,000. A five-year life was estimated and no residual value w
Umnica [9.8K]

Answer:

1.- Without Retrospective effect

2.- No as it comes from a change in estimations not an accounting error.

3.- yes. It will give a full explanation about the reasons to extend the useful life.

4.- Depreciation expense for 2021: 60,000

Explanation:

1.- The change in the useful life does not represent an accounting error. It comes from the estimation process.

800,000 - 160,000 x 2 = 480,000 book value at beginning 2021

480,000 / 8 new useful life = 60,000 depreciation per year.

5 0
3 years ago
You discover a salesman is receiving kickbacks from your largest customer, analog concerns. the information comes in an anonymou
enot [183]

I shall replace the salesman after discovering that a salesman is receiving kickbacks from my largest customer, analog concerns.

Answer: Option A

<u>Explanation:</u>

In the above mentioned scenario, the salesman is given a kickbacks - "advantages" for either the good relationship that they have maintained with the client or for luring them to always provide them the product/service with discounts.

So in this situation I would obviously replace the salesman because such situations cannot be ignored and there is no assurance that the salesman will not take kickbacks henceforth. And asking for a cut is ethically wrong as the salesman getting the kickbacks.

8 0
3 years ago
Carla and Eliza share income equally. For the current year, the partnership net income is $40,000. Carla made withdrawals of $12
sveticcg [70]

Answer:

$54,000

Explanation:

Eliza's share of net income = $40,000 ÷ 2

                                             = $20,000

Eliza made withdrawals = $21,000

Eliza capital = $55,000

Eliza’s capital account balance at the end of the year:

= Eliza capital - Eliza withdrawals + Net income share of Eliza

= $55,000 - $21,000 + $20,000

= $54,000

Therefore, the Eliza’s capital account balance at the end of the year is $54,000.

8 0
4 years ago
In 2005, BridgePort Brewing Company expanded sales of its BridgePort India Pale Ale, and BridgePort Black Strap Stout into Alaba
Rina8888 [55]

Answer: organizing

Explanation:

When the brewery allocated resources to increase its production and distribution, the management function that it'll have relied on is organizing.

First and foremost, we should note that the management functions usually include:

• planning,

• organizing,

• leading, and

• controlling.

The organizational skills is vital in order for the company to runs smoothly. Organizing has to do with the establishment of internal processes in order to know the workers that fits a particular position.

Also, the management makes sure that everyone are organized and that workers are working hard towards the accomplishment of company's goals.

7 0
3 years ago
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