Business, 30.11.2019 00:31 Hardydonotmess1
Which of the following statements is correct? a. since the costs of internal and external equity are related, an increase in the flotation cost required to sell a new issue of stock will increase the cost of retained earnings. b. since its stockholders are not directly responsible for paying a corporation's income taxes, corporations should focus on before-tax cash flows when calculating the wacc. c. an increase in a firm's tax rate will increase the component cost of debt, provided the ytm on the firm's bonds is not affected by the change in the tax rate. d. when the wacc is calculated, it should reflect the costs of new common stock, retained earnings, preferred stock, long-term debt, short-term bank loans if the firm normally finances with bank debt, and accounts payable if the firm normally has accounts payable on its balance sheet. e. if a firm has been suffering accounting losses that are expected to continue into the foreseeable future, and therefore its tax rate is zero, then it is possible for the after-tax cost of preferred stock to be less than the after-tax cost of debt.
Answers: 3
Business, 23.06.2019 01:00
Motonous corporation has completed its fiscal year and reported the following information. the company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $7,822. the firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. how much retained earnings does the firm have?
Answers: 2
Business, 23.06.2019 15:00
Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was:
Answers: 2
Business, 23.06.2019 22:30
Anarchy in the international system refers to complete chaos the absence of structure and rules the presence of disruptive states the absence of a central government that can enforce rules
Answers: 1
Business, 23.06.2019 23:00
Co-workers in the sales department of a company work closely together. these members of the sales department together make up a group.
Answers: 1
Which of the following statements is correct? a. since the costs of internal and external equity are...
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