Answer:
A. maximizes the value of the firm.
Explanation:
Managers should select the capital structure that "A", maximizes the value of the firm.
He may select a capital structure with full debt or no debt, based on certain fact and conditions.
Capital Structure may result in Minimum taxes and generate Current level of Income but the most important is to maximize the value of the firm.
Answer: $74.63
Explanation:
From the question, we are told that Cute Camel Woodcraft Company pays an annual dividend rate of 11.00% on its preferred stock which currently returns 14.74% and also has a par value of $100.00 per share. We are further informed that the preferred stock issue does not mature, and computes its annual dividend as the product of its dividend rate and its par value.
To calculate the current market value of Cute Camel’s preferred stock will be the annual preferred dividend divided by the required rate of return
The annual dividend will be:
= Par Value x Preferred Dividend Rate
= $100 x 11%
= $100 × (11/100)
= $100 × 0.11
= $11.00 per share
The Current market Value of the Preferred stock will be:
= Annual Preferred Dividend ÷ Required rate of return
= $11.00/14.74%
= $11.00/(14.74/100)
= $11.00/0.1474
= $74.63 per share
Answer:
Reliability and validity are concepts used to evaluate the quality of research. They indicate how well a method, technique or test measures something. Reliability is about the consistency of a measure, and validity is about the accuracy of a measure.
Explanation:
Answer:
The correct answer is letter "D": unsupported generalization.
Explanation:
Unsupported generalization is a statement given after coming to a broad conclusion on facts that might not be related to the topic pointed out. Evidence could be presented in these arguments but it is considered inconsistent because those arguments could be helpful to support other conclusions rather than the provided.
