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 rightward shift in the short-run aggregate supply curve will occur when:.

posledela

A rightward shift in the aggregate supply curve will occur when: there is a decrease in price input.

<h3>What is a supply curve?</h3>

A supply curve is a graphical representation of how the market would behave or move in there is a change in supply. It is a representation of the relationship between the quantity supplied for a given period of time and the prices of goods and services.

A rightward shift in the short run aggregate supply curve will then occur anytime there is a decrease in the price input.

Learn more about Supply Curve here:

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What traditional savings account allows you add to the balance regularly

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Answer:

The correct answer is letter "B": January 1, year 5.

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The S corporation election must be made by the 15th day of the third month of the taxable year to be valid for the current taxable year. If the election is made after that date, it will take effect on the first year of the next taxable year. Since Village Corp. changed into S corporation on December 5th, year 4, Village's S status will begin on January 1st, year 5.

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3 years ago

Vin diesel owns the fredonia barber shop. he employs 7 barbers and pays each a base rate of $1,380 per month. one of the barbers

harkovskaia [24]

Given: Variable Cost Fixed Cost
per haircut   per month
base salary     9660
manager bonus      530
commission   5.92
advertising   270
rent 940
barber supplies 0.30
utilities 0.25 180
magazines 25
Total      6.47 11605

Revenue 11.47

Break even point in unit = Fixed expenses per month / Contribution margin per month.

Break even point in unit = 11,605 / (11.47-6.47) = 11,605 / 5 = 2,321 haircuts

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