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melamori03 [73]
3 years ago
10

The CFO of Mulroney Brothers has suggested that the company should issue $300 million worth of common stock and use the proceeds

to reduce some of the companys outstanding debt. Assume that the company adopts this policy, and that total assets and operating income (EBIT) remain the same. The companys tax rate will also remain the same. Which of the following will occur:_____________
a) The company's net income will increase.
b) The company's taxable income will fall.
c) The company will pay less in taxes.
d) The firm's sales will increase
e) All of the above are correct.
Business
1 answer:
Pani-rosa [81]3 years ago
8 0

Answer: A. The company's net income will increase.

Explanation:

Based on the above scenario, the net income of the company will increase. From the new issue, it should be noted that there will be redemption of debt and therefore, there'll be reduction in the debt which will lead to lower interest expense.

It should be noted that the net income, which is also referred to as the net earnings, is simply the sales minus the cost of goods sold, interest, taxes and the general expenses. Since there's a lower interest expense, there'll be a rise in net income.

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Discuss the role that resources, organizational communications, and training play in the support and successful implementation o
igor_vitrenko [27]

Explanation:

A  marketing plan is the set of well-defined actions that will help an organization achieve its marketing objectives and goals.

Therefore, for the process of implementing the marketing plan to be successful it must consider the systemic set that makes up the organization.

First, resources must be allocated in such a way that there is a possibility of complying with all the marketing actions provided for in the plan, it must be necessary to be available in the organization, equipment, qualified personnel, raw materials, etc.

Organizational communication is also essential for the correct transfer of information so that an effective workflow occurs, without noise or conflict. A good manager must know how to communicate clearly and accurately, in order to support employees and supervise the work so that the marketing objectives are met, in addition to encouraging the realization of the work in the best possible way.

Training is also important for the development of employees and for them to be able to carry out activities, this is also a way of engaging and motivating employees to achieve organizational expectations.

6 0
3 years ago
What does it mean to say​ that, at an exchange rate of 1 USD​ = 40 ​INR, the U.S. dollar is undervalued and the Indian rupee is
GenaCL600 [577]

Answer:

The US dollar is worth more value than INR.

Explanation:

The US dollar is worth more value than INR under flexible exchange rate system, quantity of dollar supplied exeed the quantity of dollar demanded. There are multiple factors which affect the valuation of currency. One of the factor is purchasing power parity, as it show the strength of domestic economy. Inflation is another factor affecting the currency of the nation, higher inflation rate lead the value of currency go down.

7 0
3 years ago
True or false: one reason for the growth of sponsorships has been the need for companies to break through the clutter of adverti
gizmo_the_mogwai [7]

It is True that one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

<h3>What is the purpose of sponsorships in a firm?</h3>

sponsorships is essential for the firm because it will help them to be able to sponsor their advertisement of their brand so as to bring more profit.

In this case, It is True that one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

Learn more about sponsorships on:

brainly.com/question/1047489

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3 0
2 years ago
According to the video, what are a Computer Programmer's real skills? Check all that apply.
choli [55]

Answer:

1 3 thx for the answer!

Explanation:

3 0
3 years ago
Read 2 more answers
In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. T
Mamont248 [21]

Answer:

D) 137000 39000

Explanation:

Allen  140,000

Daniel 40,000

Capital before admission 180,000

share ratio 3:1

Capital after admission:

180,000 + 40,000 = 220,000

David participation: 20%

220,000 x 20% = 44,000

David investment  40,000

goodwill: 4,000

There is a difference in goodwill which will be supported for the old partner as their current share ratio

Allen 4,000 x 3/4 = 3,000

Daniel 4,000 x 1/4 = 1,000

Capital after David admission:

140,000 - 3,000 = 137,000

40,000 - 1,000 = 39,000

6 0
3 years ago
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