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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.

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What is the definition of human resources management​
malfutka [58]

Answer:

Human resource management can be defined as: ‘the department of a business or organization that deals with the hiring, administration, and training of personnel.

5 0
3 years ago
The CPA Practice Advisor reports that the mean preparation fee for 2017 federal income tax returns was $273. Use this price as t
larisa [96]

Answer:

The CPA Practice Advisor

The probability that the mean price for a sample of 30 federal income tax returns is within $16 of the population mean is:

= 56%

Explanation:

a) Data and Calculations:

Population mean (preparation fee for 2017 federal income tax returns) = $273

Population standard deviation of preparation fees = $100

Mean price for a sample of 30 federal income tax returns = $257 (which is within $16 of the population mean)

z = (x-μ)/σ

z = standard score

x = observed value

μ = mean of the sample

σ = standard deviation of the sample

Z = ($273 - $257)/$100

= 0.16

Using the z-table

P = 0.5636

6 0
2 years ago
Heidi quit her job as a chef making $40,000 per year to start her own restaurant. The first year, Heidi's restaurant earned $100
Murrr4er [49]

Answer:

The accounting profit is $30,000.

Explanation:

The implicit cost of running the restaurant is the opportunity cost of giving up a salary of $40,000 per year working as a chef.  

The revenue earned from the restaurant is $100,000.  

The explicit costs is  

= $50,000 + $20,000

= $70,000  

An accountant will consider only the accounting cost or explicit cost in the calculation of profits.  

Accounting profit

= Total revenue - Explicit costs

=  $100,000 - $70,000  

= $30,000  

3 0
3 years ago
A firm has a current price of $40 a share, an expected growth rate of 11 percent and expected dividend per share (D1) of $2. Giv
Xelga [282]

Answer:

d. 16% - buy

Explanation:

R = (D1 / P0) + g

Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11

Expected Return = R = ($2/$40) + 11%

R = 0.05 + 0.11

R = 0.16

R = 16%

Expected Return is higher than the required return of 12%.  Hence, it should be bought (it is expected to give higher return than required)

7 0
2 years ago
Support staff in the office of the president include who?
Alina [70]
In the question mentioned above, we are asked who are the support staff in the office of the president and this includes different people when different job description. These people are the following list enumerated below:
1. Administrators
2. The Cabinet Members
3. The reporters
4. The party leaders
7 0
3 years ago
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