In the absence of taxes, the value of a firm is the same with debt financing as it is with equity financing because Blank______. Multiple select question. equity financing is actually better than debt financing debt financing is actually better than equity financing MM demonstrated that debt financing is neither better nor worse than equity financing in the absence of taxes the asset to be financed is the same

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Answer 1
MM demonstrated that debt financing is neither better nor worse than equity financing in the absence of taxesthe asset to be financed is the sameWhat is debt financing?

Debt financing is the process through which a business sells debt instruments to retail and/or institutional investors in order to raise funds for working capital or capital expenditures. The people or organizations receiving the funds become creditors and are given the assurance that the principal and interest on the loan will be paid back. The other method of raising money in the debt markets is by issuing stock in a public offering; this process is known as equity financing.

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Related Questions

On August 22, Year 4, Martha purchases a computer to use in her childcare business. She sells the computer on December 28, Year 4, for $2,000 when the machine has an adjusted tax basis of $1,700. What is the amount and character of the gain on the sale

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The amount is $300  and character of the gain on the sale is ordinary  income.

Ordinary income

Using this formula

Gain on the sale=Cost of computer -Adjusted tax basis

Let plug in the formula

Gain on the sale=$2,000-$1,700

Gain on the sale=$300 (ordinary income)

Therefore the amount is $300  and character of the gain on the sale is ordinary  income.

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Which of the following is not a business transaction? a.Erin purchased hedge trimmers for her lawn service agreeing to pay the supplier next month. b.Erin deposits $15,000 in a bank account in the name of Erin's Lawn Service. c.Erin provided services to customers earning fees of $600. d.Erin pays her monthly personal credit card bill.

Answers

(D) Erin pays her monthly personal credit card bill.

What is a business transaction?A business transaction is an economic event involving a third party that is documented in the accounting system of an organization. Such a transaction needs to have a monetary value. Purchasing insurance from an insurer is an illustration of a business transaction acquiring stock from a vendor.What is a credit card?A credit card is a payment card that is given to customers so they can pay a merchant for products and services based on the debt they have accumulated.

Since Erin paying her credit card is her personal transaction.

Therefore, the answer will be (D) Erin pays her monthly personal credit card bill.

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(04.01 LC)
If an investor sells his investments and earns money,
O he can deduct the gains
O he will be taxed
O the initial value of the investment decreases
there will be government penalties on the transaction

Answers

If an investor sells his investments and earns money he will be taxed

A tax is a mandatory financial charge or other sort of levy placed on a taxpayer by an administrative body to pay for certain public expenditures and administrative costs.

Taxes are imposed by the government on the earnings of citizens and the profits of businesses, or they are included in the price of various products, services, and transactions as a mandatory contribution to state coffers.

Most nations have a tax system in place to finance public, shared, or agreed-upon national necessities as well as governmental duties. While some scale taxes are progressive based on bands of yearly income levels, most impose a flat percentage rate of taxation on personal annual income. The majority of nations impose taxes on both personal and business income. Wealth taxes, inheritance taxes, estate taxes, gift taxes, property taxes, sales taxes, usage taxes, payroll taxes, fees, and/or tariffs are frequently levied by nations or subunits.

Hence If an investor sells his investments and earns money he will be taxed

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__________ implies that pressure for price increases reaches across _______________markets, not just one.

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Answer:

"Inflation" implies that pressure for price increases reaches across "most" markets, not just one.

"Inflation" implies that pressure for price increases reaches across "most" markets, not just one.

What is the market?

Markets are places where individuals, businesses, and industries transact, whether it be for the purpose of purchasing, selling, or providing services. They use it in order to make money.

The term "inflation" describes an economy's overall rise in the market value of both goods as well as services. Money units may purchase fewer merchandise and services as the market's overall level of prices rises, hence inflation is associated with a decline in the value of money's purchase power.

The rate at which prices increase over a particular period of timeframe is known as inflation. Inflation is often measured in broad terms, including the general increases in inflation and the rise in a nation's living expenses.

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From an internal control standpoint, the asset most susceptible to improper diversion and use is:.

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From an internal control standpoint, the asset most susceptible to improper diversion and use is Cash.

What is cash?

Cash is the most liquid asset because it can easily be used in exchange unlike other assets.

Cash is classified under the Current Assets section of the balance sheet but is always presented first before debtors, inventory, and short-term investments.

Thus, from an internal control standpoint, the asset most susceptible to improper diversion and use is Cash.

Explain how the accounting for a fair value hedge differs for the hedged item and for the hedging item compared to the accounting for a cash flow hedg

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A cash flow hedge is accounted for differently than a fair value hedge.

The key difference between a cash flow hedge and a fair value hedge is the hedged item. With a cash flow hedge, you’re hedging the changes in cash inflow and outflow from assets and liabilities, whereas fair value hedges help to mitigate your exposure to changes in the value of assets or liabilities.

A fair value hedge is used to mitigate risk created by fixed exposures such as fixed costs, prices, rates, or terms. Whereas a cash flow hedge is used to mitigate risk from variable exposures.

In the case of the Hedged Item:

a) Loss on the hedging item on the reporting date:

Debit the loss to Loss on the Hedged Item A/c. This will have an effect on the Profit & Loss A/c and reduce the profit of the company.

Credit the Hedged item. Since this is an asset, the value of the asset will go down, and this will affect the Financial Position i.e., Balance Sheet of the company.

b) Gain on the hedging item on the reporting date:

Debit the Hedged item. Since this is an asset, the value of the asset will go up, and this will affect the Financial Position i.e., Balance Sheet of the company.

Credit the gain to Gain on the Hedged Item A/c. This will have an effect on the Profit & Loss A/c and increase the profit of the company.

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Which of the following is an example of trade barriers imposed by Japan? Multiple Choice U.S. basTo comprehend why a society thinks and behaves in a particular way, an observer should consider how the region's history and geography have influenced itsballs are not good enough for Japanese baseball teams. The unique nature of snow requires skis made in Japan. California rice must be mixed with Japanese rice. All of these choices are correct.

Answers

The correct option is E). All of these choices are correct.

What trade barriers were imposed by Japan?

Along with the tariff barriers, Japan also have some non-tariff barriers that may impact commercial activity of foreign products into Japan.

Japan prohibited the imports of narcotics, firearms, explosives, and products that violate intellectual property laws.

Japan's tariff system offers lower and duty-free rates to those products which has been imported from developing countries.

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Your client has recorded a bill for $100 in quickbooks online for some supplies they bought from walmart. when reviewing their bank feed, you see an item for $100 paid to walmart dated the same as the bill transaction. which action should you take

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As an accountant, the bill of $100 for supplied bought from Walmart shall be verified, and a journal entry shall be made where the Supplies and Inventories shall be debited, and cash shall be credited.

What is a journal entry?

A systematic manner of recording the financial transactions of an organization in a chronological way, for the purpose of maintenance of accounting records, is known as a journal entry.

In case when an organization purchases inventories or supplies for cash payment, it is an expense for them, and thus it supplies balance is debited and cash balance will be credited.

Hence, the significance of journal entry for the given transaction shall be made in the manner as given above.

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The Deepwater oil spill in the Gulf of Mexico in 2010 was made much worse because BP Oil did not have plans in place for surprises. Planning for unexpected events is called

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Planning for unexpected events is called contingency planning.

What is contingency planning?

A contingency plan is a strategy created to assist an organization in effectively responding to a large crisis, event, or condition that may or may not occur in the future.

Because it can be utilized as a fallback strategy in the event that desired outcomes are not achieved, a contingency plan is also known as a "Plan B" or backup plan. Business continuity (BC), disaster recovery (DR), and risk management all include contingency planning.

It all comes down to risk management, risk reduction, and preparation for quick disaster recovery.

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The single most common form of competition in the U.S. is perfect competition among firms with differentiated products. monopolistic competition among firms with differentiated products. oligopolistic competition in a certain market with similar products. perfect competition because it displays product and allocative efficiencies.

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The single most common form of competition in the U.S. is A. perfect competition among firms with differentiated products.

What is Market Competition?

This refers to the different pricing systems that exist in a market system that allows people to outmaneuver their competition.

Hence, we can see that the United States has capitalism where profit is the main goal and the single most common form of competition in the U.S. is perfect competition among firms with differentiated products.

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more abundant leisure increases ______, but it ______ real gdp.

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More abundant leisure increases Social Welfare, but it decreases real GDP.

What is GDP?

GDP also known as the gross domestic product is the monetary measure of the market value of all products and services produced in a country within a particular period of time.

When a country increases its leisure, it increases the level of social welfare but at the same time decreases the value of the GDP of that country.

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Answer:

social welfare; decreases

Explanation:

The complexity and challenges associated with planning for and executing an operation include.

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Answer:

One of the two equal sides of an isosceles triangle is 5.4cm . If the perimeter of the triangle is 15.4cm find the length of remaining side of the triangle.

A healthy husband and wife, ages 45 and 40 respectively, wish to start funding for retirement at age 65. What is the most appropriate time horizon for the portfolio

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The most appropriate time horizon for the portfolio to start funding for retirement at age 65 is 35 years

What is time horizon?Investments are held during time spans until they are required. The time horizon varies depending on how long or how short the investment aim is. The moment you start investing will also affect your time horizon. The power of compounding must operate for a longer period of time the longer the time horizon.

It is reasonable to anticipate that these clients, who are 40 and 45 years old, will live for another 30 to 40 years.

Therefore, their investment portfolio should have the time horizon of 35 years.

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Physical units accounted for are 155000. Total conversion costs are $413370. There are 3800 units in ending inventory which are 50% complete as to conversion costs. How much is the conversion cost per unit

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The conversion cost per unit of the inventory comes out to be $2.63.

What is a conversion cost?

A conversion cost is computed by adding the production overheads to the direct labor in the production process.

Given values:

Physical units: 155,000

Conversion cost: $413,370

Units in ending inventory: 1900 (3,800 X 50%)

Computation of conversion cost per unit:

[tex]\rm\ Conversion \rm\ cost \rm\ per \rm\ unit=\frac{\rm\ Conversion \rm\ cost}{\rm\ Physical \rm\ units + \rm\ Units \rm\ in \rm\ ending \rm\ inventory} \\\rm\ Conversion \rm\ cost \rm\ per \rm\ unit=\frac{\$413,370}{\$155,000 + \$1,900} \\\rm\ Conversion \rm\ cost \rm\ per \rm\ unit=\$2.63[/tex]

Therefore, $2.63 is the conversion cost per unit on the inventory.

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In market economies, most decisions are made by ___, while in command economies, most economic decisions are made by ___.

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In market economies, decisions are made by individuals whereas, in command economies, economic decisions are made by a central authority.

What is the Economy?

The economy refers to the position of a country when sufficient production and consumption of goods and services by the manufacturers and customers. This reflects the sufficient flow of money.

Market economy refers to the economy when any business is owned by an individual. In this type of economy, all the directions are followed by business given by individuals only, excluding government involvement.

In a command economy, it is controlled by government officials, and all the decision-making is done by them. This central authority will control the allotment of raw materials as well as resources utilized in production.

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If there is unemployment in an economy, then the Group of answer choices economy is operating at an unattainable point. production possibilities frontier will shift inwards. economy is producing at a point inside the production possibilities frontier. production possibilities frontier will shift outwards. production possibilities frontier must be bowed inward.

Answers

Answer:

yes Because production possibilities frontier helps in thing like this

the accompanying diagram depict's alex's demand for shoes. a. if shoes cost $50 a pair, how many pairs of shoes will alex buy?

Answers

If shoes cost $50 a pair, the number of shoes she would buy is 5.

How many shoes will she buy?

The image shown is a demand curve. A demand curve shows the relationship between price and quantity demanded. Price is on the y-axis and quantity demanded is on the x-axis.

In order to determine the quantity demanded, trace $50 to the curve and trace it down to the x axis.

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How to make poultry farm?

Answers

Answer:

How to make a poultry farm

Explanation:

Steps:Choose the type of poultry bird to rearSelect a suitable farm location or siteProvide good housing/shelter for the birdsFeeding and medication of the poultry birdsMarketing and sales of the poultry birds

Necessary poultry equipments

FeederWater potLaying nestsHeater/incubatorFencingEgg handling nests

True or false: In the United States, inflation reached double-digit rates in the 1970s and early 1980s but has since declined and recently, has been relatively mild.

Answers

This is True that In the United States, inflation reached double-digit rates in the 1970s and early 1980s but has since declined and recently, has been relatively mild.

What is inflation?

A general increase in the cost of goods and services is referred to as inflation. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.

When prices for goods and services increase rapidly, there is rapid inflation, which reduces the purchasing power of savings. Oil prices, currency speculators, rapacious businesspeople, and avaricious union leaders were held responsible for The Great Inflation.

Numerous businesses were destroyed and countless people were harmed by the Great Inflation and the recession that followed.

Cause for the decline in inflation:

Reduced government spending, Stock market declines,Consumer desire to save more money, Tighter monetary regulations

When the economy's output expands more quickly than the amount of available credit and money, falling prices can also occur spontaneously

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The first step to improving your time management skills is to:

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The first step to improving your time management skills is to prioritize.

What is time management skills?

This is a skill needed in order to effectively manage our time and getting things done in an effective way within a short period of time.

The first step to improving your time management skills is to prioritize. Having a daily to do list is very important in managing time effectively. It helps us determine the most important things to do in order of their importance.

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Personal selling is used most commonly in the B2B market as well as in the B2C market for Group of answer choices low-price products. mass-market products. raw materials. personal services. high-end products.

Answers

Personal selling is used most commonly in the B2B market as well as in the B2C market for high-end products.

What is personal selling?

This is when a person meets with his or her potential buyers physically with a view to sell her products.

One of the benefit of personal selling is that it allows personalized communication between your business and potential customers.

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The primary function of the american health information management association is to:.

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No se la mera neta pero te puedo ayudar cuando sepa

The purpose of __________ is to create real or perceived product differences. Group of answer choices niche marketing product differentiation product mixing target marketing

Answers

The purpose of "product differentiation" is to create real or perceived product differences.

What is product differentiation?

Product differentiation improves brand loyalty, sales, and growth by differentiating what you sell from what your rivals provide.

The significance of product differentiation-

It creates a competitive advantage and make your product is superior to alternatives on the market.Effective product differentiation highlights the special advantages of your products or services.It helps to narrow down your audience depending on what they prefer and what you offer.You have a differentiated product that offers value to customers when you better match a product's advantages to what your target audience desires than your rivals.It helps to enhance brand loyalty and can achieve higher price points.

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Expenses follow the same debit and credit rules as a.the drawing account b.liabilities c.revenues d.the capital account

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Expenses follows the same rule of the debit and credit as that of the Drawing account.

What is Drawing Account?

The Drawing account is the account in which the transactions of the money withdrawn from the business is recorded. The money is withdrawn by the owner of the business.

The golden rule of the accounting says that the debit the expenses and losses and credit the income and gains.

A debit to the drawing account and a credit to the cash account constitute the standard accounting entry for the drawings account (or whatever asset is being withdrawn).

It reflects the capital's deductibility from the overall equity of the company.

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Question 3 of 20
International accountants need to keep track of
and gains when doing business in other countries.
OA. business success rates
B. exchange rates
OC. unemployment rates
OD. gross domestic product growth rates
which can affect losses

Answers

The International accountants need to keep track of the exchange rates and gains when doing business in other countries.

Why are exchange rates and gains important?

These are important because this can affect the level of gains because the currency values in exchange differs.

Hence, they need to keep track of the exchange rates and gains when doing business in other countries.

Therefore, the Option B is correct.

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A(n) __________ is one that appears to be an agreement but lacks an essential requirement for validity and enforceability. Multiple Choice executed contract valid contract enforceable contract void contract voidable contract

Answers

A document that purports to be an agreement but does not include all necessary terms is known as a void contract. Therefore, choice 3 is right.

What do you mean by a contract?

A contract is defined as a commitment to do something between two or more parties. A loan arrangement between automobile purchasers and sellers is an illustration of a contract.

An arrangement between two persons to get married is an example of a contract.

A formal contract that is effectively void and unenforceable from the moment it is created is known as a void contract.

Hence, the correct option is Void contract to be filled in given blank

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while entrepreneur is a type of _______ role, leader is a(n) ______ role.

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While entrepreneur is a type of decisional role, leader is a(n) informational role.

Why is a entrepreneur is decisional and leader is informational?

An enterprenuer is faced with making decisions at every point in time, it comes with the choice of good and services to produce and sell while a leader gives instructions on what and how to do a thing.

Therefore, Whhile entrepreneur is a type of decisional role, leader is an informational role.

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While entrepreneur is a type of decisional role, leader is a(n) interpersonal role.

Who is an entrepreneur?

An entrepreneur is an individual who is responsible for making decisions regarding the control, financing and organization of a business.

Who is a leader?

A leader is an individual who is either elected or appointed to oversee the activities of a particular group of people at a particular time. He must be able to interact effectively with his followers in order to ensure unity and progress.

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Explain how key concepts may help you as you move forward, whether in the world of
business or otherwise.

Answers

The concept of profit making in business helps an organization to be afloat and sustainable.

What is Concept?

This is referred to as abstract ideas about a particular subject or topic and profit making concept involves selling at a price higher than the cost price.

This will help reduce loss and keep business sustainable in the long term future.

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Consumers experience ______ marginal utility the more they consume of a particular good or service.

Answers

Answer:

less

Explanation:

The law of diminishing marginal utility states that, as consumption of a good or service increases, its marginal utility decreases.

In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that it could purchase. In the next step, the managers evaluated each prospective company in depth to understand their methods of operations, processes, procedures, strengths, and limitations in order to choose the best target company. This process of evaluating the companies is best known as _________.

Answers

This process of evaluating the companies for acquisition is best known as A. Due diligence.

What is corporate acquisition?

Corporate acquisition refers to the corporate act of taking over another company for business expansion and other strategic intents.

To make a successful acquisition, the acquiring company carries out due diligence by evaluating potential acquisition candidates.

Question Completion with Answer Options:

A. Due diligence

B. Market intelligence

C. Consultation

D. Market evaluation

Thus, this process of evaluating the companies for acquisition is best known as A. Due diligence.

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Other Questions
In Anzaldas poem, To Live in the Borderlands, variations of the line, To live in the Borderlands means are used multiple times. Which of the following is NOT an effect of this repetition?It ties together the descriptions of life in the borderlands from each of the stanzas to form a complete as a picture as possible.It gives the poems language forcefulness and strength through the repeated sounds and words.It makes the poem sound rhythmic, which represents how simple life in between two worlds is.It reinforces the theme that the experience of living between two worlds is difficult to understand and describe. In the human nervous system, what is the gap between neurons called?OA. Action potentialOB. Nerve impulseOC. SynapseOD. InterneuronSUBMIT The graphs below have the same shapes. What is the equation for the red graph? Select the correct answer.Dickens is known to use caricature in his stories to criticize social problems and the evils of society. Note the words he uses to describe the charactersIn the story.What tone does the author use in the passage when discussing the board of gentlemen?humorousIroniccheerfulaggressive Tickets for a county fair are $8 for an adult and $5 for a child. If you have a 15% discount card, howmuch will 2 adult tickets and 2 child tickets cost? PLEASE HELPWrite a rational function that meets the following criteria. Leave your answer in factored form. Vertical asymptote at x = -2 Horizontal asymptote at y = 3 and a hole at x = -3 write a linear function of f with f(-3)=-2 and f(-2)=3 Which best describes the communication strategy of "seeking to understand"? Avoiding a focus on "right vs. wrong" and listening insteadEncouraging others to express genuine thoughts and feelingsNegotiating needs and meeting someone else halfwayRepeating back what you've been told to confirm the message Luciana suffered from horrendous physical abuse as a child for most of her development. Now as an adult, she has trouble remembering almost all of her childhood because she has blocked it out of her memory. Her closest friends tell her that she acts drastically different from time to time, usually dressing differently, talking differently, and even going by different names. She recently started seeing a therapist and told her therapist that she loses track of time and she doesn't remember trying to go by a different name, so it's confusing when her friends tell her this. Given the above information, we might conclude that Luciana is suffering from: When Julieta was little, she did not live in Buenos Aires, she lived in the country. To find out more about her life as a little girl, form sentences with the elements provided using the imperfect.1. mis hermanos / tener muchos animalesenter answer 8+6=?what is the answer to the question 2. What procedure did you use to complete the lab? Outline the steps of the procedure in full sentences. Virtual Lab: Water Erosion the volume of a cube depends on the length of its sides.this can be written in function notation as v(s). what is the best interpretation of v(4) =64 Write a how question and find the answer in the text Who said the following quote? "I'll work 20 hours a day in all the kitchens of Chicago...I'll strap my baby on my back if I have to and scrub all the floors in America. But we got to move."Select one:a. Beneathab. Travisc. Mamad. Boboe. Ruth Im so confused on what numbers l should put into the boxes When evaluating an AND operator, what is necessary for execution?A. Only one condition can be trueB. Only one condition must be trueC. Both conditions must be true Question 7 of 10 Which system of inequalities is graphed below? 10 -10 -8- 8 10 OA. y > X - 4 y < x +6 OB. VS X - 4 y < x +6 O c. y2 x -4 y > x + E OD. VS X - 4 y > x2 + 6 x varies directly as y. Find x when y=12 and k=6 The following data are given:a. An exporter sells watches to Russia fir Rs. 5,00,000. The exporter accepts Rs. 50,000 in cash and the remaining as a one year Bill of Exchange. b. Rohan, an Indian, goes to Sri Lanka on vacation with Rs. 2,000. He spent Rs. 1,000 on services received and bought souvenirs for Rs.900 to bring with him. c. An Indian Company imports cloth worth Rs.5,000 from Nepal. d. Karim of Bangladesh emigrates to India with Rs.1,000 e. Karim finds a job and sends Rs.1,500 to his family in Bangladesh f. An exporter, Madan, sells spare parts worth Rs.25,000 to Colombia and receives payment on delivery. g. A US exporter sells to India a process equipment for Rs. 1,50,000.