Which of the following statements is correct?A. Wide variations in capital structures exist both between industries and among individual firms within given industries. These differences are caused by differing business risks and also managerial attitudes. B. Drug companies (prescription, not illegal!) generally have high debt-to-equity ratios because their earnings are very stable and, thus, they can cover the high interest costs associated with high debt levels. C. Generally, debt-to-total-assets ratios do not vary much among different industries, although they do vary among firms within a given industry. D. Since most stocks sell at or very close to their book values, book value capital structures are almost always adequate for use in estimating firms' costs of capital.E. Electric utilities generally have very high common equity ratios because their revenues are more volatile than those of firms in most other industries.

Answers

Answer 1

Answer:

A. Wide variations in capital structures exist both between industries and among individual firms within given industries. These differences are caused by differing business risks and also managerial attitudes.

Explanation:

Put simply, all the other options aren't factual statements which lack reliability. However, it is generally accepted that not all companies would have the same capital structures (eg either equity capital or debt capital).

So, it is accurate to say that, wide variations in capital structures exist both between industries and among individual firms within given industries.


Related Questions

Barney places his new extension ladder on a slippery surface when he leans it against the wall. He climbs up; the ladder slips out from under him and he falls. Which type of product liability may exist in this situation

Answers

Answer: C) Marketing if the manufacturer did not provide instructions on how to use the ladder.

Explanation:

The options to the question are:

A) Manufacturing since ladder may not have been intended for this use.

B) Design since the ladder may not have been made to specifications

C) Marketing if the manufacturer did not provide instructions on how to use the ladder.

D) There is no liability. The users assumes all risk in using any type of ladder.

From the question, we are informed that Barney places his new extension ladder on a slippery surface when he leans it against the wall and that as he climbs up; the ladder slips out from under him and he falls.

The type of product liability may exist in this situation is "Marketing if the manufacturer did not provide instructions on how to use the ladder".

The act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the

Answers

Answer:

Federal Insurance Contributions Act

Explanation:

The Federal Insurance Contributions Act refers to a law that establishes the federal taxes that are deducted from employees' salaries to get the funds for social services like Medicare, disability insurance, among others. According to  this, the answer is that the act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the Federal Insurance Contributions Act.

If a government uses monetary policy to alter the exchange rate, then it cannot at the same time use monetary policy to address issues of ______________________.

Answers

Answer:

inflation or recession

Explanation:

According to Tradeoffs of Soft pegs and Hard peg, which deals with exchange rates policies of a nation, it goes that, in a situation whereby a government uses monetary policy to alter the exchange rate, then it cannot at the same time use monetary policy to address issues of INFLATION OF RECESSION. This is because the altering exchange rate by monetary policy is Soft Peg while addressing the issue of inflation it recession by monetary policy is Hard peg.

Lacey has a degenerative eye disease that is causing her to gradually lose her eyesight. When Lacey asked her employer, Ideal Accessories, to purchase a low-vision computer for her use at work, she was fired. Ideal Accessories has violated the

Answers

Answer: American with Disabilities Act

Explanation:

The Americans with Disabilities Act was out in place in order to prevent the discrimination against the people that have disabilities. People with disabilities should be given equal rights to transportation, employment opportunities, education etc just like every other person.

Basee on the above scenario in the question, we can say that Ideal Accessories has violated the American with Disabilities Act.

The project manager has concerns about the software developer's project work in terms of quality and has spoken to the developer about this on several occasions. This involvement derives from the relationship between project management and quality management that should complement each other. What specifically is the relationship between the two

Answers

Available Options Are:

(A) Both focus on management responsibility, fulfillment of requirements, continuous improvement, prevention over inspection, and product excellence

(B) Both focus on management responsibility, continuous improvement, prevention over inspection, and customer satisfaction

(C) Both focus on management responsibility, fulfillment of requirements, continuous improvement, prevention over inspection, and customer satisfaction

(D) Both focus on management responsibility, continuous improvement, prevention over inspection, and product excellence

Answer:

Option B. Both focus on management responsibility, continuous improvement, prevention over inspection, and customer satisfaction

Explanation:

The quality management and the project management both are management study. Secondly, both of these focus on the improving the project quality and making it better in the every next step. Both management techniques prefer mistake prevention techniques over the continuous prevention which cost lower. These three things were common in all of the option above and are written in bold letters.

Option A is incorrect because fulfillment of requirements and product excellence is not part of project management though it is part of quality management.

Option B is correct because both project management and quality management says that customer satisfaction comes from quality output.

Option C is incorrect because fulfillment of requirements is not part of project management though it is part of quality management.

Option D is incorrect because product excellence is not part of project management though it is part of quality management.

The broker while creating a CMA does not usually consider the full range of data about market conditions and comparable sales that the appraiser must consider and document. Therefore, the broker's opinion of value will be

Answers

Answer:

less reliable than the appraiser's.

Explanation:

in such a scenario the broker's opinion of value will be less reliable than the appraiser's. This is mainly because the broker does not have all the information that the appraiser has and is making his opinion without this information, which may lead to unforeseen consequences that would not otherwise occur if the broker had this information and was able to see a much bigger picture of the situation to incorporate into his opinion.

If a stock with a beta of 1.4 is expected to return 18% when Treasury bills yield 6%, what is the expected return on the market portfolio

Answers

Answer:

14.57%

Explanation:

A stock has a beta of 1.4

The expected return is 18%

The risk free rate is 6%

Therefore, the expected return on the market portfolio can be calculated as follows

18%= 6% + 1.4(market return-6%)

18%= 6% + 1.4market return - 8.4

18%= 6-8.4 + 1.4market return

18%= -2.4% + 1.4market return

18%+2.4%= 1.4market return

20.4= 1.4market return

market return= 20.4/1.4

= 14.57%

Hence the expected return on the market portfolio is 14.57%

A registered representative purchased two tickets to a concert for which he paid $175 per ticket. If the face value of the tickets is $95 per ticket, the RR may:

Answers

Answer:

The RR may decide not to give any tickets to a customer

Explanation:

Based on the information given about the registered representative the registered representative may decide NOT L to give any tickets to a customer reason been that the face value which is $95 per ticket for two person when calculated will give us the amount of $190($95 ×2) which is higher than the actual value or amount he paid for the two ticket calculated as ($175×2) which gave us $350 given us a difference of $160($350-$190).

Therefore Based on this registered representative may NOT give any tickets to a customer.

Tyler cannot afford to hire a sales person for his small business but feels personal selling is the best way to encourage prospects to become customers.You remind him that:_____

Answers

Answer:

the most cost-efficient mode of selling may be to use sales or marketing representatives

Explanation:

Personal selling by Tyler can divert his focus from proper management practices of the firm's activities.

Selling involves constant interaction with the customer and follow up on prospective clients.

This can be stressful and lead to lose of sales revenue through ineffective customer engagement.

Hiring a sales representative is more cost effective because sales representatives are hired on a contract basis with commission paid on performance.

This ensures that a reasonable amount is paid to get execute the sales process.

Randy and Kim divided their 30-acre property into three 10-acre parcels (lots A, B, and C). A and C can only access the public road through B. The buyers of A and C will probably be granted what type of easement by court action?

Answers

Answer: Easement by necessity

Explanation: Easement may be referred to as a right granted to an individual to make use of another person's property or land such that the individual would not be penalized for trespassing. The easement by necessity is usually granted by a legal body, that is a court of law, granting an individual a legal pass or authority to move or travel over another person's land without penalty. This is uaually the case when it becomes a must and there is no other means by which the individual can access his or her own property except by passing or traveling through another property. In the scenario above, the owners of land A and C will be granted easement of necessity which will allow them to travel through land B without being penalized in other to access their own property.

Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany. This is:_______

Answers

Complete Question:

Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners’ trademark in restaurants in Germany. This is?

Group of answer choices

a. a distribution agreement.

b. a joint venture.

c. direct exporting.

d. licensing.

Answer:

D. Licensing.

Explanation:

Diners Corporation is a U.S. firm which signed a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany. This is licensing.

Licensing can be defined as a strategic business approach, which involves a company giving permission (license) to another company so it has the right to produce or manufacture its products, usually for a specific amount of money.

Hence, the company being granted a license has the right to use the other company's patent, copyright, design and trademark in its productions.

Seventy-five percent of the research and development and selling expenses were traceable to Askin. Profit before taxes for the Askin product, per life-cycle income statements, is:

Answers

Answer: $475,000

Explanation:

75% of both the research and development and selling expenses were traceable to Askin.

= 75% * (1,170,000 + 130,000)

= $975,000

Profit before taxes for Askin = Askin Gross Profit - Share of expenses

= 1,400,000 - 975,000

= $475,000

"Greater Florida Builders wants to build a 450-acre housing development. They submit the plans to the local zoning commission who agrees with the plans, providing that Greater Florida Builders agree to give land for a new school to be located within the subdivision. Greater Florida Builders has been required to:"

Answers

Answer:

Dedicate the property for the school.

Explanation:

In this scenario Greater Florida Builders wants to build a 450-acre housing development. But before getting approval to commence the project the local zoning commission requires the Greater Florida Builders to dedicate a property to the school before it agrees to their proposal.

Local zoning commissions are locally elected government board that recommends to the city council the boundaries of various housing projects and ensuring these boundaries are enforced.

They also apply measures that segregates business property from residential property.

GAAP includes which of the following pronouncements: Multiple Choice Statements of Financial Accounting Standards. Accounting Research Bulletins. Accounting Principles Board Opinions. All of the choices are correct.

Answers

Answer:

All of the choices are correct.

Explanation:

GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).

GAAP includes each of the following pronouncements:

Statements of Financial Accounting Standards, Accounting Research Bulletins, Accounting Principles Board Opinions.

For external reporting purposes, United States of America, Generally Accepted Accounting Principles (GAAP) allows companies to use only the traditional format of the income statement.

United States of America, Generally Accepted Accounting Principles (GAAP) is the accounting principles, procedures and standard issued by the Financial Accounting Standards Board (FASB) and adopted by the United States of America, Securities and Exchange Commission (SEC).

When accountants prepare and compile financial statements for public firms, it must be in line with United States of America, Generally Accepted Accounting Principles (GAAP).

On November 30, Year 1, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of Shaw Co. At November 30, Year 1, Shaw's balance sheet showed a carrying amount of net assets of $3,000,000. At that date, the fair value of Shaw's property, plant, and equipment exceeded its carrying amount by $400,000, and the fair value of Shaw's trademark name brand is $75,000. In its November 30, Year 1, consolidated balance sheet, what amount should Parlor report as goodwill

Answers

Answer:

$275,000

Explanation:

Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result

Workings

Purchase consideration = 250,000*15 =3,750,000

Percentage acquired = 100%

Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000

Goodwill = 3,750,000=3,475,000 =275,000

Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except:A) mandatory health warnings on tobacco products are required in most countries.B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point.C) in 2008, the United States enacted a country of origin labeling (COOL) law.D) the use of terms "light" and "natural" are allowed on labels only in the United States.E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.

Answers

Answer:

D) the use of terms "light" and "natural" are allowed on labels only in the United States.

Explanation:

As the term "light" has a dictionary meaning of a very low in weight as compared to similar products in the market, is a very basic term to define the nature of product.

No labelling regulator has claimed that this kind of labelling is only allowed in the United States.

Further, the dictionary meaning of the word "natural" with respect to products shall mean, one that is not composed of high chemicals or transformation, but the major essence is extracted from the nature, i.e. from the environment.

Thus, the word natural can again be used by any country to label their product and in no manner is restricted to the United States.

A six-year Finance Lease entered into on December 31 of the current year specified equal annual lease payments due on December 31 of each year. The first annual lease payment, paid on December 31 this year, consists of which of the following?

1. Interest expense
2. Lease liability

a. Yes Yes
b. Yes No
c. No Yes
d. No No

Answers

Answer:

C

Explanation:

Finance lease is an indirect way of providing a finance for an asset through a lease arrangement. The lessor acquires the asset and leases it out to the lessee , however , the lessee recognizes the leased asset as an asset in its book provided certain lease conditions are met.

The two components of finance lease obligation are Interest and the lease payment.

In this scenario , as the payment was made at the onset of the lease arrangement , no interest expense has accrued and none will be recognized. The first lease payment made will reduce the lease liability of the asset as agreed in the arrangement. .

The correct option is c. No Yes.

The following information should be considered:

Under the effective-interest method, interest should be recorded to account for a change in value because of the passage of time. Given that the first payment should be made at the inception of the lease, where no time has passed. Thus, the first payment decreased the lease liability, but no interest is recognized.

Learn more: brainly.com/question/17429689


Entrepreneurs affect the economic decisions a country makes by:

Answers

I inferred from an economic perspective.

Answer:

contributing to the creation of new jobs, new technology, and innovations, while increasing their countries GDP.

Explanation:

This is so because entrepreneurs are usually termed the backbone of every economy. For example, a country's decisions about how much of a product to produce would depend on the number of entrepreneurs it has in the country's economy.

Thus, by contributing to the creation of new jobs, new technology, and innovations, entrepreneurs can shape the decisions of the country's government.

gains tax I) means that the investor doesn't need to pay taxes until the investment is sold. II) allows the investment to grow at a faster rate. III) means that you might escape the capital gains tax if you live long enough. IV) provides a tax shelter for investors.

Answers

Answer:

I), II), IV)

Explanation:

Deferral has a dictionary meaning of halting things for a while up till a certain future event.

Deferral of capital gains tax means not paying the capital gains tax up till the actual sales is made of investments attracting the capital gains tax.

It further helps the investor to focus on returns rather than the capital gains tax to be attracted and paid, which also allows the investment to grow fully.

It is a form of tax benefit to investors thus, it acts as a shelter.

Further, in no terms deferral of capital gains tax shall mean non payment of tax, as once the investment is sold the tax has to be deposited.

Henry and his girlfriend ate dinner at the new Thai restaurant that recently opened in his neighborhood. This expenditure would be included in:

Answers

Answer:

The bill.

Explanation:

Expenditure means the part of the action that has to do with money or spending money. In this case that would be the bill at the end of their meal.

Alan works as a news anchor for a television network. In addition to his regular pay, at the end of each year, his company pays him and his co-workers additional compensation as a "thank you" for good work. This monetary reward would most likely be categorized as a

Answers

Answer:

Benefit

Explanation:

Benefit is extra payment that an employee collects from an employer. It is paid in addition to the normal compensation that a person receives and serves as a way to improve their welfare and to motivate them to perform better.

Usually benefits are not performance based payment but based on membership of an organisation. They are usually paid seperate from normal compensation.

In this case Alan's company pays him and his co-workers additional compensation as a "thank you" for good work. This is a benefit.

Answer: Benefit

Explanation:

A Benefit is a type of monetary reward that a company may see fit to pay its employees for a good performance during the year and to sometimes express gratitude and appreciation for the hard work done in a period.

The Benefit will act as an incentive to keep the employees more motivated as they will feel appreciated. One of the most common examples of bonuses would be the Christmas/holiday bonus which is likely what Alan and his co-workers receive every end of year.

Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of a barrier to entry classified as:

Answers

Answer: product differentiation

Explanation:

From the question, we are informed that Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs.

This is an example of a barrier to entry which is known as product differentiation. Poduct differentiation is when a company makes its product different from other similar products so that the product will be more attractive and unique from others.

If a brand or company is trying to repair a damaged reputation with the people it serves, its strategic efforts in digital marketing would align with:_______.
A. Share of Voice.
B. Authority.
C. Favorability.
D. Knowledge.

Answers

Answer:

C. Favorability.

Explanation:

Digital marketing can be defined as an application of a wide range of channels or medium such as mobile devices, internet, social media, software applications, search engines, and a variety of electronic channels to reach out to consumers and potential buyers.

If a brand or company is trying to repair a damaged reputation with the people it serves, its strategic efforts in digital marketing would align with favorability.

Favorability in digital marketing tends to measure the relationship between a business and its customers. The main purpose is to create affinity for a business or making customers feel positive towards a business after viewing an advert.

The Triffin paradox warned that the gold-exchange system of the Bretton Woods agreement was programmed to collapse in the long run. was indeed responsible for the eventual collapse of the dollar-based gold-exchange system in the early 1970s. was first proposed by Professor Robert Triffin. all of the options

Answers

Answer:

All of the options.

Explanation:

Professor Robert Baron Triffin was born on the 5th of October, 1911 in Flobecq, Belgium. He was a Belgian-American economist who became famous for his criticism of the Bretton Woods system of fixed currency exchange rates when he appeared and testified before the US Congress in 1959.

The Triffin paradox:

1. Warned that the gold-exchange system of the Bretton Woods agreement was programmed to collapse in the long run.

2. Was indeed responsible for the eventual collapse of the dollar-based gold-exchange system in the early 1970s.

3. Was first proposed by Professor Robert Triffin.

"A customer has an account with a brokerage firm that is in receivership. The account holds $220,000 of securities and has a $90,000 debit. Which statement is TRUE regarding SIPC coverage?"

Answers

Answer: The account is covered for $130,000

Explanation:

The options to the questions are:

A. The customer must deposit $90,000 to receive the $220,000 of securities

B. The account is covered for $100,000

C. The account is covered for $130,000

D. The account is covered for $220,000

Based on the above question, it should be noted that the equity in the account of a customer is covered by SIPC and the coverage should not be more than $500,000 while for the cash coverage, there is a limit of $250,000.

Since the account has securities of $220,000 and a $90,000 debit, it simply means that the equity will be:

= $220,000 - $90,000

=$130,000.

The customer will then get securities worth of $130,000 in liquidation.

A customer at the checkout complains that they can't find the brand of shampoo that they came in for. When you check for them, you see that there is no product on the shelf. What do you do?

Answers

Here are the options:

A. Check the receiving room for the product to be in the shelves.

B. Let them no the truck comes in on Tuesday.

C. Tell the Customer to check back again later.

D. Show the Customer the other brands of Shampoo that's available on the shelf

Answer:

D. Show the Customer the other brands of Shampoo that's available on the shelf.

Explanation:

This is the option because it provides an opportunity to still make a sale. Remember, the customer only complained of not seeing a particular brand

It therefore, means that if shown other brands of Shampoo that's available on the shelf they may opt-in to buy them.

An economist estimated that the price elasticity of demand for new cars to be 0.87 if the price of cars declines by 40%. One would expect the quantity of new cars to:______

Answers

Answer:

% change in quantity =34.8%

Explanation:

Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.  

Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic  

PED is computed as follows:  

PED = % change in quantity /% change in Price  

PED = 0.87

% change in Price =  40%

% change in Quantity =?

0.87 = y/40%/

Cross mulitiplying, we have

y = 0.87 × 40 = 34.8

Dividing both sides by 0.87

y =  34.8

% change in quantity = 34.8

% change in quantity =34.8

_______ can provide guidance when organization members are uncertain about whether an action is ethical. The communications manager An ethics philosopher The ethics ombudsperson The personnel manager The accommodative manager

Answers

Answer:

The ethics ombudsperson

Explanation:

-The communications manager takes care of making the internal and external messages of the company.

-An ethics philosopher deals with defining what is good and what is wrong.

-The ethics ombudsperson is an official that investigate complaints related to the violation of rights.

-The accommodative manager takes care of making sure that the company functions in an efficient way and that the standards are met.

According to this, the answer is that the ethics ombudsperson can provide guidance when organization members are uncertain about whether an action is ethical because this person invetigates complaints to find out if there is a violation.

A proposed new investment has projected sales of $515,000. Variable costs are 44 percent of sales, and fixed costs are $128,500; depreciation is $49,750. Prepare a pro forma income statement assuming a tax rate of 24 percent. What is the projected net income?

Answers

Answer:

Net operating income= $83,714

Explanation:

Giving the following information:

Sales= $515,000.

Variable costs are 44 percent of sales

Fixed costs are $128,500

Depreciation is $49,750.

Tax=  24 percent.

Income statement:

Sales= 515,000

Total variable cost= (0.44*515,000)= (226,600)

Gross profit= 288,400

Fixed costs= (128,500)

Depreciation= (49,750)

Operating income= 110,150

Tax= 110,150*0.24= (26,436)

Net operating income= 83,714

___________ links the purchase of an organization's products to support of philanthropic organizations favored by the target market

Answers

Answer:

cause - related marketing

Explanation:

Cause-related marketing is when a charity event is sponsored by two or more companies . The purpose of cause related marketing is to increase the corporate social responsibilities of company supporting this cause.

Cause related marketing involves collaboration between a business that is meant to generate profit and a not for profit organization with a view to benefiting each other. Also, a not for profit organization can create awareness about themselves in terms of their contributions to the society in cause related marketimg.

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