APV and WACC are similar in that they reflect the tax benefit of leverage.
<h3>How to illustrate the information?</h3>
It should be noted that the adjusted present value (APV) is used to value a project.
The weighted cost of capital (WACC) implies the rate at which a company is expected to pay all its security holders in order to finance its assets.
In conclusion, APV and WACC are similar in that they reflect the tax benefit of leverage.
<u>Complete question:</u>
APV and WACC are similar in that they reflect the tax benefit of ...........
a. leverage
b. relocation
c. equity
d. waiting
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Answer: B- 6 minutes
Explanation: From the question above, In one hour, about 20 customers shows up at Rent a Wreck.
It takes 2 minutes to photocopy their driver's license and insurance card and take an impression of a credit card
therefore 20/2=10
in one hour which is 60 min = 60/10
=6 minutes
Answer:
a. $510.000
b. $22.500 gain
c. $16.785 gain
Explanation:
a. Kevin bought in total 1750 shares, and for it he spent $510.000
So 1 share is $291,43
b. He bought 500 shares 12.12.2018 for $140.000, then he sold those 500 shares for $162.500. Difference is the gain of $22.500
c. Not knowing from which batch of shares did he sell his shares we already know that avg 1 share is $291,43, so 500 share is $145.715 and he has sold 500 shares for 162.500. Difference is the gain of $16.785
Answer:
In accounting, agency costs are the costs of hiring an agent in order for him/her to act on behalf of a principal. In finance, agency costs are much broader since they imply costs that may appear due to conflicts of interests between the agent and the principal. E.g. a manager who seeks to accomplish short term goals in order to collect a bonus but hurts the long term objectives and goals of the stockholders.
Agency costs of financial distress refers to the costs associated with conflicts of interest that may result in a company being insolvent, specially in the long run. This type of costs are not necessarily related to operating costs, instead they result from management decisions and strategies, e.g. higher cost of capital or debt, or even excessive spending.
Agency benefits of leverage result from stockholders benefiting from the agent's decision to keep equity low, and if needed, obtain financing from debt sources.
Applied methods corporation promises to provide stock options to Belden, a production designer, for processes he has already designed. This promise exists unenforceable.
<h3>What is a promise in Contract?</h3>
A contract is an enforceable legal arrangement that establishes, details, and regulates the rights and duties of the parties. The transfer of commodities, services, money, or a promise to transfer any of those at a later time are common components of contracts. All business is conducted through contracts, which are mutual agreements between two (or more) parties that, once signed, impose binding legal duties on each party. Simple solutions for this include purchasing something or offering a service.
A contract, however, is enforceable in a court of law. There are no legal ramifications for breaking a promise in the same way that there are for breaching a contract, yet persons of honor and high moral character try to fulfil their word whenever feasible. A promise or set of promises is referred to as a contract if the law recognizes a duty to perform them or if there is a legal remedy for their breach.
Hence, Applied methods corporation promises to provide stock options to Belden, a production designer, for processes he has already designed. This promise exists unenforceable.
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