Which of the following statements concerning capital structure theory is NOT CORRECT?
A. The major contribution of Miller's theory is that it demonstrates that personal taxes decrease the value of using corporate debt.
B. Under MM with zero taxes, financial leverage has no effect on a firm's value.
C. Under MM with corporate taxes, the value of a levered firm exceeds the value of the unlevered firm by the product of the tax rate times the market value dollar amount of debt.
D. Under MM with corporate taxes, rs increases with leverage, and this increase exactly offsets the tax benefits of debt financing.
E. Under MM with corporate taxes, the effect of business risk is automatically incorporated because rsL is a function of rsU.

Answers

Answer 1

Answer: D. Under MM with corporate taxes, rs increases with leverage, and this increase exactly offsets the tax benefits of debt financing.


Related Questions

Ted Paine wants to facilitate exchange for his products by informing groups and influencing them to accept his firm's products. What would you suggest

Answers

Answer:

Select the appropriate promotional activities.

Explanation:

In the scenario being described the best suggestion that can be provided is for Ted to Select the appropriate promotional activities. Doing this correctly will drastically increase and maximize the activities influencing potential, which will attract a very large audience to the firm's products. This will also drastically increase the firm's profits as they will become loyal customers.

This capital lease is recorded as an asset on the balance sheet of the lessee in an amount equal to the: A) dollar amount of each lease payment multiplied by the total number of lease payments in the original agreement. B) dollar amount of each lease payment multiplied by the number of lease payments remaining. C) dollar amount of each lease payment multiplied by the number of lease payments per year. D) present value of the remaining lease payments. E) lesser of the present value of the remaining lease payments or the present value of the lease payments for a one-year period..

Answers

Answer: e. lesser of the present value of the remaining lease payments or the present value of the lease payments for a one-year period..

Explanation:

The capital lease is recorded as an asset on the balance sheet of the lessee in an amount equal to the lesser of the present value of the remaining lease payments or the present value of the lease payments for a one-year period.

Most recent work on the history of leisure In Europe has been based on the central hypothesis of a fundamental discontinuity between preindustrial and industrial societies. According to this view, the modern idea of leisure did not exist In medieval and early modern Europe: the modern distinction between the categories of work and leisure was a product of Industrial capitalism. Preindustrial societies had festivals (together with Informal and Irregular breaks from work), while industrial societies have leisure in the form of weekends and vacations. The emergence of leisure is therefore part of the process of modernization. If this theory is correct, there is what Michel Foucault called a conceptual rupture between the two periods, and so the v

Answers

Answer:should be noted that, first paragraph of the passage enlightens us on the difference between preindustrial and industrial society in Europe and how great was it to an extent that “the modern

distinction between the categories of work and leisure” (lines 4-5) cannot be reasonably applied to the former, which implies that there exists a discontinuity between the two periods.

Furthermore, the second paragraph argues that the discontinuity approach can accommodate historical data.

On a final note, the third paragraph admits that, while it is very useful in some aspects, this approach “can pose problems of its own” (line 25) and it then briefly describes these problems. All this points to Choice E as correct.

The word “dichotomy” as it appears in the last paragraph of the passage. One of the key claims there is that the dichotomy “reduces a great variety … to the simple formula” (lines 31-33). Therefore Choice C is correct.

More so, “Simple dichotomy” is also mentioned in line 26. The passage states that this dichotomy “remains of use in so far as it reminds us that the rise of industrial capitalism” (lines 28-29) was not just an economic phenomenon, but also a social and a cultural phenomenon. This points to Choice A as correct.

We should also not forget that, the main purpose of the passage is to discuss the idea of “the central hypothesis of a fundamental discontinuity between preindustrial and industrial societies” (lines 1-3) in terms of the development of the concept of leisure. Large volume of the passage is focused on demonstrating the usefulness of this hypothesis; nonetheless, the second part of the third paragraph mentions some “distortions” (line 31) that may result if the hypothesis is accepted. Therefore Choice B is correct. Choices A, D, and E are incorrect, as only one hypothesis/solution is discussed in the passage. Choice C is incorrect, as the passage does not mention that the “distortions” (line 31) caused by accepting the hypothesis are illusory

What are the answers for these? Please help it’s economics

Answers

Answer:

Question 4 is D

Question 5 is A possibly

"An issuer making a tender offer for its non-convertible bonds and later increases the price being offered by 10%. Which statement is TRUE?"

Answers

Answer: B. The increase in the tender price increases the life of the offer by another 5 business days

Explanation:

The options to the question are:

A. The increase in the tender price has no effect on the life of the offer

B. The increase in the tender price increases the life of the offer by another 5 business days

C. The increase in the tender price increases the life of the offer by another 10 business days.

D. The increase in the tender price increases the life of the offer by another 20 business days

From the question, we are informed that an issuer is making a tender offer for its non-convertible bonds and later increases the price being offered by 10%.

It should be noted that a tender offer is a bid for public takeover and in this scenario, the option that is true is that the increase in the tender price increases the life of the offer by another 5 business days.

Price lining is setting a price floor and a price ceiling for a line of products and then setting price points in between to represent differences in quality.A. TrueB. False

Answers

Answer:

FALSE

Explanation:

With depreciation, the estimated amount of money that can be expected from some buyer at the end of asset’s useful life is its

Answers

Answer:

Salvage value

Explanation:

Salvage value is the value of an asset after all depreciation expenses has been expensed.

For example, an asset cost $500,000, it has a 2 year useful life. the depreciation percentage is 20% for each of the useful life of the asset, the salvage value =

Cost of the asset - accumulated depreciation

accumulated depreciation = 2 x($500,000 x 0,2) = $200,000

Salvage value = $500,000 - $200,000 = $300,000

$300,000 is the estimated amount of money that can be expected from some buyer at the end of asset’s useful life

The ________ is an incomplete picture because a single number cannot fully reflect the sources of the underlying differences in income.

Answers

Answer:

Income inequality ratio

Explanation:

The income inequality ratio is an incomplete picture because a single number cannot fully reflect the sources of the underlying differences in income.

Income inequality refers to the uneven distribution of income among the population of a particular place. It is the difference in the allocation of income in a particular country.

Income inequality occurs across different segments of the population such as gender(male and female), ethnic group, occupation, geographical location etc.

The Gini index is widely used to compare disparities in income.

With an Adjustable-rate Loan the interest rate fluctuates and is usually tied to an index. The interest rate for any given period is the indexed rate plus the

Answers

Answer:

margin amount

Explanation:

Adjustable rate loan has a defined interest rate associated with it for an initial period, further after that the interest is decided by adding an indexed rate + the margin rate depending upon certain other factors.

It is also called as the floating rate loan, and the margin is not fixed it keeps on changing with the change in period.

It might be six monthly, monthly, or quarterly or in any period of interval.

This provides for the calculation each time that is different. As margin is the additional added amount which differs each time.

The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nishimatsu's: a.hubris. b.dialectic inquiry. cmitment. d.illusion of control.

Answers

Answer:

k i need help too

Explanation:

The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nishimatsu's inquiry. commitment.

What is employee?

The term employee refers to the work in the company to earn the money. The employee is the provided the services to the company with exchange of the salary. The employees are the work with the unity are the increased the wealth of the company.

According to the company was the provided the less salary into the less profitable and employees are the cut on the particular amount. It was the perfect example of the inquiry commitment. The commitment on the each and the every company to the related to the company details.

As a result, the decision to take less salary was the example of the commitment. Therefore, option (c) is correct.

Learn more about on employee, here:

https://brainly.com/question/29076248

#SPJ2

2. Advertisements, employment agencies, college placement offices, online resume-posting services and industry referrals are good ________ sources that can be used in the recruiting efforts of a firm.

Answers

Answer:

External.

Explanation:

Advertisements, employment agencies, college placement offices, online resume-posting services and industry referrals are good external sources that can be used in the recruiting efforts of a firm.

External sources of recruitment involves the process of seeking the required manpower or workforce from outside the shores of an organization. This ultimately implies that, potential employees are usually sourced outside an organization by the recruiters or human resources department.

Companies engaged in a single line of business most commonly utilize an organizational structure that can be:_______.
a. expected to evolve over time into a matrix or hybrid structure.
b. a functional (departmental) organizational structure.
c. either a centralized, principal, or critical-path organizational structure.
d. either independent, consolidated, or hybrid profit centers.
e. hybrid functional organizations with a combination of decentralized and centralized decision making.

Answers

Answer:

b. a functional (departmental) organizational structure.

Explanation:

Companies engaged in a single line of business most commonly utilize an organizational structure that can be a functional (departmental) organizational structure.

A functional (departmental) organizational structure is a type of structure used to organize staffs by dividing them into various departments based on their skill set, roles or functions and knowledge.

These departments which are vertically structured may include, finance, information and communications technology, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.

Hence, a functional (departmental) organizational structure enhance efficiency and an improved quality of production because workers having similar skills, knowledge and experience are grouped together to achieve common goals and objectives.

In the context of the principles of total quality management (TQM), _____ means collaboration between managers and nonmanagers, across business functions, and between companies, customers, and suppliers .

Answers

Answer:

Teamwork

Explanation:

In total quality management (TQM) teamwork refers basically to the same thing as  it does in any other circumstance. I.e. working together in order to achieve a higher common goal. Teamwork is essential in every management theory, but TQM has a slightly different approach.

TQM sees teamwork as a means of creating interdependent quality circles. This means that employees and management must learn to work together as a team and must learn to depend on each other's work. It is basically like a goalkeeper that relies on his/her defense to help them avoid the opponent team from making goals.

Tombstones are produced in a competitive price-searcher market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600. From this information, we can conclude:_______

a. new tombstone firms will want to enter.
b. this producer is losing $2,000 a week.
c. this producer is making an economic profit of $400.
d. this producer is setting MR = MC.
e. this producer should increase production.

Answers

Answer:

b. this producer is losing $2,000 a week.

Explanation:

The computation is shown below:

As we know that

Profit = (Price - Average total cost) × Quantity

= ($500 - $600) × 20

= -$2,000

This negative amount represents that there is a loss of -$2,000

Hence, option B is correct as the producer losing $2,000 in a week

Therefore all the other options are wrong

At a trustee's sale, a property was sold for $160,800. The fees and court costs amounted to $1,600. The property was encumbered with a first deed of trust in the amount of $156,500 and a second deed of trust in the amount of $2,000. Which of the following is correct?

a. There would be a surplus, which would go to the beneficiary
b. There would be a surplus, which would go to the trustor
c. There would be a surplus, which would go to the trustee
d. The beneficiary of the second trust deed could initiate court action for a deficiency against the trustor

Answers

Answer:

Option C, there would be a surplus, which would go to the trustee, is the right answer.

Explanation:

The property sold at a price = $160800

The fees and court cost = $1600

First deed amount = $156500

Second deed amount = $2000

Total costing = 1600 + 156500 + 2000 = $160100

Since the selling amount is greater than the cost amount. Thus, there will be surplus to the trustee. So, Option c is correct.

Accounts receivable Select one: a. Are usually converted into cash in 30 to 60 days b. Are relatively liquid assets c. Usually appear after short-term investments in marketable securities d. All of the above

Answers

Answer:

D

Explanation:

Accounts receivable  is the amount of money that customers owe a company for goods or services that were purchased on credit.

Accounts receivable appear as assets on the balance sheets

If a study of past stock prices and volume to find mis-priced securities will not lead to gains in the market, then the market must be at least _____ efficient.

Answers

The answer would be weak-form

What makes the managerial task of executing strategy so challenging and demanding is A. the trial-and-error experimentation that is required to come up with a workable organizational structure that can adapt to the mature stages of the industry life cycle. B. the demanding people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along. C. the time and effort it takes to build core competencies and a robust code of ethics. D. the time, training, and creative effort it takes to empower employees and teach them to communicate with their customers. E. the supervisory requirements associated with getting company personnel to do benchmarking.

Answers

Answer: B. the demanding people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along

Explanation:

The managerial task of executing strategy is so challenging and demanding because of the demanding people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along.

The other options in the question are wrong, therefore option B is the correct answer.

On August 2, Jun Co. receives a $7,000, 90-day, 11.5% note from customer Ryan Albany as payment on his $7,000 account. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year.

Answers

Answer:

Journal entry to record receipt of notes receivable on August 2

Date             Description                        Debit      Credit

August 2    Notes Receivable                $7,000

                       Account Receivables                     $7,000    

Journal entry to record note receivables honored by the customer

Date             Description                        Debit          Credit

October 31   Cash                                   $7,198.49

                        Notes Receivables                           $7,000

                        Interest Receivables                        $198.49

Workings

Interest = Principal amount * Periodic interest rate

Interest = $7,000 * 11.5% * 90/365

Interest = $198.49

Hence, the interest on note receivables is $198.49

Which of the following statements regarding corporate bonds is most correct? a. Debentures are riskier than subordinated debentures because they are paid last in the event of bankruptcy.

Answers

Answer:

The answer is C. The interest rate on subordinated debentures is likely to be higher than the interest rate on debentures

Explanation:

The options to the question are under the 'Ask about this question'

Debentures are long-term security (bond) that is not secured by any collateral. It is being issued based on the past record of the issuer i.e the issuer's creditworthiness and also its reputation.

What is subordinated debenture? - This is also an unsecured loan but ranks below the table i.e some loans are above it in the ranking.

The interest or yield on subordinated debts is usually higher because it is more risky than the normal debentures.

Chung manages his employees by carefully monitoring their production, comparing what they do to predicted schedules and desired budgets. Chung can best be described as a ________ leader. Multiple Choice task-oriented charismatic transformational relationship-oriented

Answers

Answer:

task-oriented

Explanation:

-Task-oriented leader is a leader that focuses on plans and schedules to be able to accomplish goals.

-Charismatic leader is a person that is persuasive and because of that is able to convince people to support him/her.

-Transformational leader is a person that is able to influence people to make changes.

-Relationship-oriented leader is a person that works on motivating and developing relationships among people that are part of a group.

According to this, the answer is that Chung can best be described as a task-oriented leader because he is focused on controlling the activities to make sure the plans and schedules are met to reach the objectives.

Tamarisk Corp. purchased machinery for $347,400 on May 1, 2020. It is estimated that it will have a useful life of 10 years, salvage value of $17,400, production of 264,000 units, and working hours of 25,000. During 2021, Tamarisk Corp. uses the machinery for 2,650 hours, and the machinery produces 29,580 units.
From the information given, compute the depreciation charge for 2021 under each of the following methods. (Round intermediate calculations to 2 decimal places, eg. 5.25 and final answers to O decimal places, e.g. 45,892.)
(a) Straight-line
(b) Units-of-output
(c) Working hours
(d) Sum-of-the-years'-digits
(e) Declining-balance (use 20% as the annual rate) $

Answers

Answer:

Explanation:

Purchase price = 347,400

Useful life = 10 years

Salvage value = 17,400

Production unit = 264,000

Unit produce = 29,580

Working hours = 25,000

Working hours used = 2,650

Workings

Depreciable amount = 347,400 - 17,400 = 330,000

1. Straight line depreciation = 347,400-17,400 /10

= 330,000 / 10 =33,000

2.Units of output = 29,580/264,000*330,000

= 36,975

3. Working hours method

2650/25,000*330,000 = 34,980

4.Sum of the years digit

Sum of the digits = 10(10+1)/2 =55

330,000 *10/55*4/12 +330,000*9/55*8/12 = 56,000

5 Declining balance at 20%

2020 =  ( 347,400 *20%) = 69,480

2021 = 347,400 -69,480  * 20% =277,920 *20%

277,920 - 55,584 = 222,336

Which of the following statements concerning capital structure theory is NOT CORRECT?
A. The major contribution of Miller's theory is that it demonstrates that personal taxes decrease the value of using corporate debt.
B. Under MM with zero taxes, financial leverage has no effect on a firm's value.
C. Under MM with corporate taxes, the value of a levered firm exceeds the value of the unlevered firm by the product of the tax rate times the market value dollar amount of debt.
D. Under MM with corporate taxes, rs increases with leverage, and this increase exactly offsets the tax benefits of debt financing.
E. Under MM with corporate taxes, the effect of business risk is automatically incorporated because rsL is a function of rsU.

Answers

Hello
Letra : C

C ok ? Bjs

Define and compute opportunity cost

Answers

Answer:

opopportunity cost is the value of the next best alternative or option. this value may not be measure on money

value can also be satisfaction. one formula to calculate opportunity cost could be the ratio of what you are sacrificing to what you are going

An agent sells his client 10 U.S. government bonds due to mature in 30 years. According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents. What statements may the agent legally make?

Answers

Answer:

The bonds are guaranteed as to principal and interest payments by the US government.

Explanation:

According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, a broker can say US government bonds are guaranteed on principal and interest payments.

However if inflation sets in and interest rates rises there is no guarantee from the government that interest paid on the bonds will match the higher interest rate.

So legally this statement is correct, even though the investor can lose money as a result of higher interest rate in the future.

A manufacturer of an aircraft may issue information concerning an improvement or change that may be made on an aircraft, these changes are called

Answers

Answer:

Service Bulletins

Explanation:

A service bulletin as seen in the question above can simply be defined as a document used by aircraft manufactures to issue or give information concerning improvements or changes that may be made to or on an aircraft.

Depending on the manufacturer's judgement of the modification or improvement as either a product improvement or a safety improvement, service bulletins will be released.

Cheers.  

The market price of pomegranates is $2, and JoAnne sells 25 pomegranates at the local farmer's market. The total revenue is and the marginal revenue IS

Answers

Answer:

$50 and $2

Explanation:

The computation of the total revenue and the marginal revenue is shown below:

Total revenue is

= Price ×  quantity

= $2 × 25

= $50

And, the marginal revenue is received collected from one unit i.e price of the one units that equivalent to $2

Hence, we simply applied the above formula to determine the total revenue and the marginal revenue

A project is a series of tasks to produce one or more ________, which are items that you hand off to the client or management for their review and approval.

Answers

Hi there! Hopefully this helps!

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Answer: Deliverables

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

"A project is a series of tasks to produce one or more Deliverables, which are items that you hand off to the client or management for their review and approval."

A financial lease: A) is generally called a capital lease by accountants. B) requires the lessor to maintain the asset. C) is a partially amortized lease. D) is often called a single net lease. E) can generally be cancelled without penalty..

Answers

Answer:

Option A seems to be the correct approach.

Explanation:

A financial lease seems to be a contractual contract in which: the lessee requires a property. Consider buying the commodity from the lessor. Mostly during the rental agreement, the lessee seems to be using that income stream.The obligation to pay a sequence of installments or leases and the use of the commodity. Although a finance lease becomes capitalized, the financial statement raises when both capital as well as the responsibilities.

The other alternatives in question aren't relevant to something like a particular circumstance. Then the above will have to be a viable substitute.

Answer:

A) is generally called a capital lease by accountants, is the correct answer.

Explanation:

It is an alternate way of financing in which the lessor buys an asset on behalf of its customer and the lessee signs a contract to repay the payments in installments.

In this type of lease the finance company has the ownership of the asset during the tenure but all the reward and risk related to the asset are transferred to the lessee. The lessee get the ownership of the asset at the end of the lease term.

A university does not have a centralized receiving function for departmental purchases of books, supplies, and equipment. Which of the following controls will most effectively prevent payment for goods not received, if performed prior to invoice payment?

a. Vendor invoices should be approved by a departmental supervisor other than the employee ordering the goods.
b. Invoices over a specified amount should be approved by the vice president of finance.
c. Names and addresses on vendor invoices should be compared to a list of department-authorized vendors.
d. Vendor invoices shoul be matched with department purchase orders.

Answers

Answer: a. Vendor invoices should be approved by a departmental supervisor other than the employee ordering the goods.

Explanation:

From the question, we are informed that a university does not have a centralized receiving function for departmental purchases of books, supplies, and equipment.

The control that will most effectively prevent payment for goods not received, if performed prior to invoice payment is that the invoices of the vendor should be approved by a departmental supervisor other than the employee ordering the goods.

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