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3 years ago

The MM theory with taxes implies that firms should issue maximum debt.There is a difference between theory and practice because:

Business

1 answer:

mylen [45]3 years ago

5 0

Answer:

There is a difference between theory and practice because the theory states with taxes implies that firms should issue maximum debt but in practice, this does not occur because it will result in bankruptcy if firms are issuing maximum debt. There should be a balance between how much debt is acquired and how much equity is taken. Therefore bankruptcy becomes a cause of concern if maximum debt is issued.

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A member firm receives a large block order to buy 100,000 shares of XYZ stock, which is not actively traded. Which customer(s) o

Snowcat [4.5K]

Answer:

Other customers of the firm who place buy orders, if the firm has information barriers in place.

Explanation:

FINRA has strict rules against front running, and this is the process by which interested parties place orders for shares beforehand because they have insider information on how a share is going to perform in the future.

This rule is binding on any registered representative.

However if the firm has information barriers in place, any other customers that places a buy order will be assumed not to have insider knowledge of the share's expected performance. The FINRA rule is not binding on them.

3 0

4 years ago

Manny’s Cookies, Ltd. is an online cookie subscription business started by a 7-year old (Manny) and his father. Manny’s Cookies

lisov135 [29]

Answer:

Social Entrepreneurship

Explanation:

According to my research on different types of businesses, I can say that based on the information provided within the question Manny's Cookies is an example of Social Entrepreneurship. This term refers to a start up company that in which they develop, fund and implement different products or services for society, as well as providing solutions for society, or the environment. Which in this case the product are Manny's cookies but by donating money to charity they are helping provide solutions to many problems.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0

3 years ago

Skysong Inc., a provider of consulting services, was founded on October 1, 2022. At the end of the first month of operations, th

qwelly [4]

Answer:

a. Income Statement for the month of October 2022

Revenue:

Service revenue $19,540

Expenses:

Salaries and Wages $2,800

Supplies Expenses $360

Depreciation Expenses $260

Interest Expenses $350

Total Expenses $3,770

Net Income $15,770

b. Retained earnings statement for the month of October 2022

Retained Earnings, October 1, 2020 $0

Add: Net Income $15,770

Retained Earnings, October 31, 2020 $15,770

3 0

3 years ago

Economists sometimes give conflicting advice because

Nataly [62]

B. Economists have different values and scientific judgment. Economists exercise both subjective and objective judgments about data that they collect and observations that they make. These values and judgments differ among economists which can affect their advice or opinions, sometimes leading to conflicting advice.

5 0

3 years ago

Suppose someone borrows $552,000 today to buy a house in Davis, CA. If the annual interest rate is 4%, with monthly compounding,

galina1969 [7]

Answer:

Monthly Repayment on Loan = $2634.06

Explanation:

given data

principal = $552,000

annual interest rate = 4% = 0.333% monthly

solution

for get here fair value monthly mortgage payment we consider here time period is 30 year = 360 months

so now we apply here Monthly Repayment on Loan formula that is

Monthly Repayment on Loan = principal × $\frac{r(1+r)^t}{(1+r)^t -1}$ .................1

put here value and we get

Monthly Repayment on Loan = 552000 × $\frac{r(1+0.333)^{360}}{(1+0.333)^{360} -1}$

Monthly Repayment on Loan = $2634.06

4 0

3 years ago