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Scilla [17]
3 years ago
7

The optimal capital structure has been achieved when the: debt-equity ratio is equal to 1. debt-equity ratio results in the lowe

st possible weighted average cost of capital. debt-equity ratio is such that the cost of debt exceeds the cost of equity. weight of equity is equal to the weight of debt. cost of equity is maximized given a pretax cost of debt.
Business
1 answer:
icang [17]3 years ago
3 0

The optimal capital structure can be realized if : Debt-equity ratio selected results in the lowest possible weighted average cost of capital.

  • An optimal capital structure can be regarded as best mix of debt as well as equity financing which maximizes a company's market value.

  • And as well minimizing its cost of capital, it can be realized when Debt-equity ratio  that is been selected, gives the lowest possible weighted average cost of capital.

Learn more at:

brainly.com/question/10782180?referrer=searchResults

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Money includes only the few types of wealth that are regularly accepted by sellers in exchange for goods and services. true or f
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Answer: True

Explanation: think about reality what do people do for money

7 0
3 years ago
Read 2 more answers
Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The planning team comes up with a list of
Sergio [31]

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy.The planning team comes up with a list of options for the new mission statement.The CEO stresses that the new mission statement should be market-oriented rather than product-oriented.Which of the following mission statements should the company pick?

A)to create the best possible products and sell them at the best possible price

B)to sell cosmetics products that are hypoallergenic and made only from the finest natural materials

C)to give customers the complexion they dream about by providing a range of products suited to their needs

D)to sell affordably priced cosmetics in every cosmetics product category

E)to increase our market share in the cosmetics segment and increase profit margin

Answer:

C)to give customers the complexion they dream about by providing a range of products suited to their needs .

5 0
3 years ago
In terms of foodservice layout design, a ‘work station’ is a small area at the back of the dock
Assoli18 [71]
This statement is false. A work station is a space planned for a specific set of tasks.
8 0
4 years ago
The adjusted trial balance of Parsons Company at December 31, 2020, includes the following accounts: Common Stock $15,600, Divid
g100num [7]

Answer:

$12,200

Explanation:

Preparation of an income statement for the year.

PARSONS COMPANY Income Statement

For the year ended December 31,2020

Service Revenue $37,000

Expenses:

Salaries and wages $16,000

Insurance Expense $2,000

Rent Expense $4,000

Supplies Expense $1,500

Depreciation Expense $1,300

Total Expenses $24,800

Net Income $12,200

($37,000-$24,800)

Therefore income statement for the year is $12,200

8 0
3 years ago
There are two polluting firms in an industry. Each firm is initially generating 200 tons of pollution each year. Each faces the
11Alexandr11 [23.1K]

Answer:

Permits will be the best option

Explanation:

Assuming the cost per ton of polution reduction follows a linear progression and it can reach zero

<u>The best option will be the permits:</u>

As Firm B will eliminate their polution and sale his permis to Firm A

That occur as Firm B is more efficient in doing this will sale to Firm A

In the end Firm A will have all the permits and continue to produce 200 tons

but Firm B will produce none achieving the goal of 50% reduction with the least economic impact.

This is a market solution which little intervention from the Gvernment

Cost to eliminate 200 polution with permits:

200 x $10 = 2,000

If we force each company to reduce pollution Firm A higher cost will create deadweight-loss

100 x $20 = 2,000

100 x $10 =  <u> 1,000</u>

                    3,000

8 0
3 years ago
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