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3 years ago

Explain the significance of capital structure.

2 answers:

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Capital structure maximizes the company's market price of share by increasing earnings per share of the ordinary shareholders. It also increases dividend receipt of the shareholders. Investment Opportunity: Capital structure increases the ability of the company to find new wealth- creating investment opportunities.

mojhsa [17]3 years ago

4 0

Capital structure increases the ability of the company to find new wealth- creating investment opportunities.

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Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods

pantera1 [17]

Answer:

The correct answer is C) purchase Canadian dollar put options.

Explanation:

A sale option (or put option) gives its holder the right - but not the obligation - to sell an asset at a predetermined price until a specific date. The seller of the option to sell has the obligation to buy the underlying asset if the holder of the option (buyer of the right to sell) decides to exercise his right.

The purchase of put options is used as hedging, when price falls are anticipated in shares that are held, since by means of the purchase of Put the price is established from which money is earned. If the stock falls below that price, the investor earns money. If the share price falls, the profits obtained with the sale option compensate in whole or in part for the loss experienced by said fall.

Losses are limited to the premium (price paid for the purchase of the sale option). Earnings increase as the share price falls in the market.

5 0

3 years ago

The most competitively effective and very likely most profitable long-term approach to reducing or eliminating the impact of pay

monitta

Build and equip a production facility in Europe-Africa and then expand it as may be needed to supply all ( or at least most) of the pairs the company intends to try to sell in Europe-Africa is the most competitively effective and very likely most profitable long-term approach to reduce or eliminate the impact of paying tariffs imported to a company's distribution warehouse in Europe-Africa.

Tariffs are taxes imposed by one country on goods or services imported from another country. Tariffs are trade limitations that raise prices and decrease available quantities of goods and services for U. S. businesses and customers.

A “unit” or specific tariff is a tax levied as a fixed charge for each unit of a good that is imported – for instance, $300 per ton of imported steel. An “ad valorem” tariff is levied as a proportion of the value of imported goods. An example is a 20 percent tariff on imported automobiles.

Learn more about Tariffs here brainly.com/question/8000501

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3 0

2 years ago

4. What is another name for a command economy?

USPshnik [31]

Answer:

planned economy

Also known as a planned economy, command economies have as their central tenet that government central planners own or control the means of production within a

Explanation:

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3 years ago

Which advantage do consumers gain from buying a vehicle rather than leasing it?

Gnom [1K]

B because when you lease a car you can only have a certain amount of miles that you can travile with

6 0

3 years ago

Read 2 more answers

Spartan systems reported total sales of $430,000, at a price of $25 and per unit variable expenses of $16, for the sales of thei

jek_recluse [69]

We are told the company had total sales of $430,000 and sold each product for $25. We can conclude that they sold 17,200 units of their product by dividing 430000 by 25.

As we are selling a single product in the problem's text, and because we told both per-unit contribution margin and net operating income, we have enough information to build a contribution based income statement. In a contribution based (or internal) statement, Revenue - Total Variable Expenses = Contribution Margin and Contribution Margin - Total Fixed Expenses = Operating Income.

$430,000 Total Sales Revenue

(275,200) Total Variable Expenses

$154,800 Total Contribution Margin

(113,000) Total Fixed Expenses

$41,800 Net Income

Think of our above statement as the BEFORE. Now we are going to make the AFTER and increase the volume. Since the selling price is $25 and we sold 17,200 units, we multiply 17,200 times 20% to find the new units sold. 17200 * 20% is 3440 units. We add that to the 17.200 units to find our new sales volume, which is 20,640 units. Since each product sells for $25 each, we can calculate our new contribution margin.

$516,000 Sales Revenue AFTER 20% increase

(330,240) Variable Expenses AFTER 20 % increase; 16 * 20640

$185,760 Contribution Margin AFTER 20% increase

Thus the new contribution margin is $185,760.

3 0

3 years ago