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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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Answer:

$16,394.26

Explanation:

using a loan calculator we can determine the amount of interest paid in both loans:

<u>loan 1</u>                                                 <u>loan 2</u>

n = 30 years                                      n = 30 years

principal = $200,000                       principal = $200,000

APR = 4%                                          APR = 3.6%

monthly payment = $954.83          monthly payment = $909.29

total interest paid = $143,739.01    total interest paid = $127,344.65

the difference in total interest paid between both loans = $143,739.01 - $127,344.65  = $16,394.26

the difference in monthly payment between both loans = $954.83 - $909.29  = $45.54

8 0
2 years ago
Which dimension of the Big Five model refers to an individual's propensity to defer to others? A) conscientiousness B) agreeable
lisabon 2012 [21]

Answer:

agreeableness

Explanation:

Emotional stability measures the ability to withstand stress.

Conscientiousness measures the ability of a person to be reliable and organised.

Openness to experience measures interests and fascination with new things and experiences.

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I hope my answer helps you

6 0
3 years ago
Read 2 more answers
Functions of money and barter
blagie [28]

Solution :

When the people of this economy trades three of their goods, the price of the good must list 1 price and then the economy requires 3 prices for the people to carry transactions.

Suppose the number of the goods that people trade increases to 15 number, then the price of the goods must list one price and the number of the price that the economy requires increases to 15.

Money has an intrinsic value and it is the unit of account, while that of the currency is the measure of the value and have a purchasing power that government is bestowed on it being a legal tender.

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Even when the cost of the living increases, the money serves as the best medium of exchange and a unit of the account.

Double coincidence of the wants is the barter system that is required.

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Answer:

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________ attacks take advantage of flawed human judgment by convincing the victim to take actions that are counter to security p
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Answer:

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