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forsale [732]
2 years ago
14

Majestic Theaters has plans to build a new $30 million movie theater and intends to finance this project through the sale of add

itional shares of ownership in their firm. Selling new shares of stock represents __________ financing.
Business
1 answer:
gtnhenbr [62]2 years ago
6 0

Based on the information given selling new shares of stock represents equity financing.

Equity financing can be defined as the process of selling the percentage of the stock you own or selling the shares of your stock in order to raise funds.

Example an investor may choose to to purchased a shares in the company so as to make money or profit by selling their those shares.

Based on the information given selling of additional shares of ownership represent equity financing as the investors is trying to make money or raise funds so as to build a new movie theater by selling the new shares of stock.

Inconclusion selling new shares of stock represents equity financing.

Learn more about equity financing here:brainly.com/question/14033901

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A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. W
frosja888 [35]

Available Options Are:

a. Cost of Goods Sold

b. Net Profit Margin

c. None of these

d. Asset Turnover

Answer:

Option B. Net Profit Margin

Explanation:

The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.

Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.

Option D is incorrect because asset turnover formula is:

Asset Turnover = Sales / Total Assets

The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.

3 0
3 years ago
5. What strategy does BCG prescribe for each SBU? 6. If you do not agree with the prescribed strategies. What would you do? Just
bixtya [17]

Answer:

Justify your recommendation. From the BCG Matrix we can tell that Electrical appliances unit is a Cash Cow with high market share and stable growth.

THEN U FIND ONE THAT U LIKE

HOPE THIS HELPS

Explanation:

8 0
2 years ago
Which of the following is a style trend
Vera_Pavlovna [14]

The popularity of a new type of jeans

hope this helps!

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6 0
3 years ago
Inflation is problematic if a. it is less than the percentage increase in nominal income. b. it is less than the nominal return
zmey [24]

Answer:

It distorts relative prices, causing a misallocation of resources.

Explanation: Inflation is an economic term used to describe a situation in a country's market when there is a sudden rise in commodities sold in the market. Inflation can be as a result of an increase in demand of commodities sold in the market.

It has a negative effect, when the prices are distorted and the purchasing power is not properly allocated to the buyers.

8 0
3 years ago
Would you rather be a juvenile prosecutor or defense attorney? Explain your decision.
balandron [24]

Answer:

<u>a defense attorney instead</u>

<u>Explanation:</u>

From a financial standpoint, a <u>defense attorney</u> would more likely make more money than a<u> juvenile prosecutor</u> because a defense attorney could charge up more for certain cases than been a juvenile prosecutor who wants to ensure someone is convicted.

Also, in terms of purpose, I do feel a defense lawyer could make more impact socially by defending his or her clients.

6 0
3 years ago
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