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GarryVolchara [31]
3 years ago
6

In the trade-off theory, debt levels chosen to balance interest tax shield against the costs of financial distress imply:_______

_
a. an interior optimum (firm value maximizing) debt ratio
b. that investors are irrational, since they require lower returns the hgher the risk
c. that a firm would use little to no debt
d. that a firm would borrow as much as possible
Business
1 answer:
pychu [463]3 years ago
3 0

Answer:

a) an interior optimum (firm value maximizing) debt ratio

Explanation:

Trade off Theory is about capital structure of an economic unit. It mentions about the benefit of debt - ie tax saving, as interest on debt is tax deductible; & cost of debt - bankruptcy & insolvency risk, due to fix interest cost.

The theory depicts the debt level, which is best to - balance interest tax shield against the costs of financial distress imply, which implies that it seeks a balance between benefit & cost of debt.

So, the theory finds the best interior optimum (firm value maximising) debt equity ratio.

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In the dell case study, engineers working closely with marketing, used lean software development strategies and numerous technol
Karolina [17]

In the dell case study, engineers working closely with marketing used lean software development strategies and numerous technologies to create a highly scalable, singular data mart.

<h3>What is Marketing?</h3>

This refers to the act of promoting a business or a good or service to the general public.

Hence, we can see that based on the Dell case study, there was the use of software development strategies to make and develop a highly scalable, singular data mart.

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7 0
2 years ago
Consider the impact of the following two events in the television market.First, people are using more tablets and fewer televisi
babunello [35]

Answer:

The correct answer is option B.

Explanation:

As people are using more tablets and fewer television sets, the demand for television sets will decline. This will cause the demand curve to shift to the left. As a result, the price level will decline.  

Now, with new production technique the cost of production declines. As a result, there will be an increase in the supply as the firm will be able to produce more at the same cost. This will cause the supply curve to shift to the right. This rightward shift in the supply curve may lead to an increase or decrease in the quantity of output. It depends on the extent of change in supply.

7 0
3 years ago
Jamal Steel, a rapidly growing small steel company with annual revenues of $8 million is looking to buy a large industrial furna
Sloan [31]

Answer:

The correct answer is A. maker.

Explanation:

The manufacturing industry (manufacturing) is the production of added value of merchandise for use or sale using labor and machinery, tools, chemical and biological processes, or formulation. The term can refer to a wide range of human activities, from handicraft to high technology, but it is more commonly applied to industrial production, in which raw materials are transformed into finished products on a large scale. Such finished products can be used to manufacture other more complex products, such as airplanes, appliances or cars, or be sold to wholesalers, which in turn sell them to retailers, which they then sell to end users or consumers.

6 0
3 years ago
The company Andorinha Ltda. presented on 03/15/01 the total amount of R$1,500.00 in the account of Duplicates Payable; soon, on
DerKrebs [107]

Answer:

a) Credit Balance R$1,000.00

Explanation:

The Duplicates Payable represents a Liability in Andorinha Ltd records.

When Andorinha Ltda paid a cash duplicate in the amount of R$500.000 the entries recorded will be :

Trade Payable-Duplicates R$500.000 (debit)

Cash R$500.000 (credit)

<em>Effect on Balance of Duplicates Payable</em>

Decrease in Duplicates Payable by $500,000

Remaining Balance is $100,000 (credit)

8 0
2 years ago
Tray's job is to survey personnel, customers, and corporate partners regarding what other firms in the market are doing. He also
Basile [38]

Answer:

The correct answer is letter "E": competitive intelligence.

Explanation:

Competitive intelligence refers to gathering and analyzing corporate information that could affect a firm's competitive advantage. Thanks to the information gathered companies can mirror other institution's good practices to increase efficiency and effectiveness, thus, revenue.

3 0
3 years ago
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