MCQ:
According to MM Proposition I with taxes:
firm value is maximized when the firm is all-equity financed.
increasing the debt-equity ratio increases firm value.
the unlevered cost of equity is equal to RWACC.
capital structure does not affect firm value.
the cost of equity rises as the debt-equity ratio increases.
According to MM Proposition II:
the cost of levered equity depends solely on the return on debt, the debt-equity ratio, and the tax rate.
the cost of debt is inversely related to a firm’s debt-equity ratio.
the cost of equity is equivalent to the required return on the total assets of a levered firm.
the capital structure of a firm is irrelevant to the value of the firm.
a firm’s cost of equity is a positive linear function of the firm's capital structure.

Answers

Answer 1

According to MM Proposition I with taxes:

The unlevered cost of equity is equal to RWACC.

MM Proposition I with taxes states that the value of a firm is determined by the unlevered cost of equity, which is equivalent to the weighted average cost of capital (WACC) when taxes are considered. In other words, the unlevered cost of equity (also known as the cost of capital for an all-equity financed firm) is equal to the weighted average cost of capital (RWACC) for a levered firm.

According to MM Proposition II:

The cost of levered equity depends solely on the return on debt, the debt-equity ratio, and the tax rate.

MM Proposition II states that the cost of levered equity (the required return on equity for a levered firm) is determined by the return on debt, the debt-equity ratio, and the tax rate. It implies that the capital structure of a firm affects the cost of equity, and the cost of debt is irrelevant to the cost of equity. Therefore, the cost of levered equity is influenced by the firm's financing decisions.

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Related Questions

Stretch goals are the Multiple Choice targets that are exceptionally demanding and novel. set of goals whose primary focus is to protect organizations from being sustainable. targets that merely exhort employees in general terms to improve performance and start doing their best. goals that conflict with people's personal values and interests. goals that are high enough to inspire better performance but at the same time are always unattainable.

Answers

Answer:

targets that are exceptionally demanding and novel.

Explanation:

Stretch goals are the targets that are exceptionally demanding and novel. It is not everyone that considers or think about creating stretch goals because they are highly demanding and relatively new to the individual or business firm.

Generally, stretch goals are divided into two (2) main categories and these includes;

I. Horizontal stretch goals: it is focused on the professional development of individuals through attempting, learning and picking up difficult challenges or tasks.

II. Vertical stretch goals: these type of goals or targets are usually in tandem with the current activities in an organization such as productivity and financial outputs.

Benjamin obtained a loan of $22,500 at 5.5% compounded monthly.
How long (rounded up to the next payment period) would it take to
settle the loan with payments of $2,810 at the end of every
month?

Answers

It would take Benjamin 11 months to pay back the loan if he makes monthly payments of $2,810 at the end of every month.

Benjamin obtained a loan of $22,500 at 5.5% compounded monthly. He wishes to know how long it would take to pay back the loan if he makes monthly payments of $2,810. The payments are made at the end of each month. We are expected to determine the period it would take to settle the loan if the monthly payments are $2,810.

Because Benjamin is making monthly payments, the interest rate would also be calculated monthly.

Thus, we have

r = 5.5%/12 = 0.00458.

Also, the present value (PV) is $22,500, and the monthly payment (PMT) is $2,810.

We would need to determine the number of months it would take to pay back the loan. To achieve this, we would make use of the formula for the period (n) in the formula for the present value of an annuity.

The formula is given as:

n = -log(1- PV * r / PMT) / log(1+r)

=> n= -log(1- PV * r / PMT) / log(1+r)

=> n = -log(1- 22500 * 0.00458 / 2810) / log(1+0.00458)

=> n = 10.21 months,

rounded up to the next payment period ≈ 11 months.

Therefore, it would take Benjamin 11 months to pay back the loan if he makes monthly payments of $2,810 at the end of every month.

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What's the main reason to use a personal budget?
O A. To keep costs below benefits
O B. To stay out of debt
C. To appropriate discretionary funds
O D. To maximize investment returns

Answers

Answer: B, stay out of debt

Explanation: A budget reveals areas where you're spending too much money so you can refocus on your most important goals. A budget can keep you out of debt or help you get out of debt. A budget actually creates extra money for you to do use on things that matter to you.

B because the whole point of having a budget is to make sure you don’t over spend and to make sure your spending enough money on everything you need

What is the present value (PV) of $200,000 received seven years from now, assuming the interest rate is 10% per year? A.$120,000 B.$128,290 C.$102,632 D.$179,605

Answers

The correct option is B. $128,290Explanation:In the context of finance, the term "present value" refers to the current value of a future sum of money, given a specific interest rate and time period.

To compute the present value, we can use the formula:PV = FV / (1 + r)^tWhere PV is the present value, FV is the future value, r is the annual interest rate, and t is the number of years. Using the given values, we have:FV = $200,000r = 10%t = 7 years Substituting these values in the formula, we get:PV = $200,000 / (1 + 0.1)^7

Using a calculator, we can evaluate the expression in the denominator as: (1 + 0.1)^7 = 1.9487Substituting this value in the formula, we have:PV = $200,000 / 1.9487Simplifying the expression on the right-hand side, we get:PV = $102,632.94Therefore, the present value of $200,000 received seven years from now, assuming the interest rate is 10% per year is $128,290 (rounded to the nearest dollar).

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Question 3 of 10
Which of the following is a hard skill that a marketing manager might use on
a regular basis?
A. Using listening skills to understand employee concerns
B. Using spreadsheets to plan budgets
C. Using leadership skills to motivate a project team
D. Using coding skills to create websites for clients
SUBMIT

Answers

Answer: B. Using spreadsheets to plan budgets

Explanation: yes

T/F: a wrongful mental state is typically required to establish criminal liability

Answers

True. A wrongful mental state is typically required to establish criminal liability. In most legal systems, a wrongful mental state, also known as mens rea, is an essential element in establishing criminal liability.

Mens rea refers to the mental state or intention of the person committing a criminal act. It involves the awareness and conscious decision to engage in conduct that is prohibited by law. Criminal liability often requires the presence of both the wrongful act, known as the actus reus, and the wrongful mental state, the mens rea. The mens rea component demonstrates that the individual had the necessary intent, knowledge, or recklessness to commit the offense. It signifies that the person not only committed the physical act but also possessed the required mental state that makes the act blameworthy. Different crimes may require different levels of mens rea, ranging from intentional and knowing conduct to negligence or even strict liability, where no wrongful mental state is necessary. Nonetheless, in general, a wrongful mental state is typically an essential factor in establishing criminal liability.

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Complete the statement.

Steve has joined as a trainee manager at a convenience store. His superior has noticed that he does not fill out his time sheet accurately and so he does not show
_________.
Also, Steve always leaves much of his work undone. The superior has concluded that Steve will not prove to be a _________ employee for the organization.


options for first space: punctuality, confidentiality, honesty
options for second space: honest, reliable, punctual

Answers

Answer:

Honesty; reliable.

Explanation:

An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.

Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).

In this scenario, Steve has joined as a trainee manager at a convenience store. His superior has noticed that he does not fill out his time sheet accurately and so he does not show honesty. Honesty is the act or quality of being honest and sincere with one's actions and words (statement).

Also, Steve always leaves much of his work undone. The superior has concluded that Steve will not prove to be a reliable employee for the organization. Reliable is the quality of an individual to be credible, dependable and trustworthy to others.

Give an example of a time where you used Physical Capital to make or create something.​

Answers

Answer:

cash is one example of a physical capital

Why would you write a complaint to a company?

Answers

maybe because they didn’t give you what you asked for, or gave you something bad or low quality. hope i gave you some good options! :)

Answer:

To discuss with a company about a problem you may be having with their service or product.

Explanation:

Landscapers must be
knowledgable of which of the
following?
A. Pesticides
B. Economics
C. Human Relations
D. Crop Rotation

Answers

Answer:

B

Explanation:

because they need to deal with all practices that are done by people on environment

Answer:

C

Explanation:

Landscapers need to know human relations because if they want to get something to do for their job, marketing and having an asset is important for the business, if you don't know anyone that needs help, it wouldn't be very good for your business.

Have an awesome day!! I hope this helped!! ^ ^

3) Bill weighs 220 pounds and is losing 4 pounds each month. Phil weigh 250 pounds and is losing 10 pounds each month. How many months, m, will it take for Bill to weigh the same as Phil? How much will they weigh?

Answers

5 months and 200 pounds

4x5 = 20

220-20

200

10x5 = 50

250-50

200

if a typist averages one error in every 2568 words, what is the probability that a 8000-report is free of errors?

Answers

The probability that an 8000-word report is free of errors is 0.6848 or approximately  1.85%. To find the probability that an 8000-word report is free of errors, we'll first determine the probability of a single word being error-free and then use that to calculate the probability for the entire report.

The probability of a single word having an error is 1/2568. Therefore, the probability of a single word being error-free is 1 - (1/2568) = 2567/2568.

Now, since the report has 8000 words, we need to multiply the probability of a single word being error-free for all 8000 words: (2567/2568)^8000 ≈ 0.0185 or 1.85%.

So, the probability that an 8000-word report is free of errors is approximately 1.85%

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what were some of the negative aspects of industrialization?

Answers

Learn about the main negative effects of industrialization, such as sickness, wealth inequality, densely populated cities, and environmental degradation.

An income of revenue

For many people, one example of income is the pay they earn from their jobs. Any money received by someone or organization in exchange for labor, the creation of goods and services, or the removal of capital is referred to as income.

Which different types of income are there?

Earned, passive, and asset income are the three basic types of income. Wages, commissions, tips, and salaries are all types of earned income. Partnerships, rental units, and royalties are examples of potential passively or earned income sources. Interest, dividends, and capital gains from the sale of assets are all examples of investment income.

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pls be nice and answer this for me. in the middle of a test. 50 pts!

Nate received an unusually large requisition order from another department for a new type of material that they had not purchased before. He had a good relationship with the supplier so he sent the supplier an invoice for the order. What should Nate have done differently?

A. Solicited for a bid from the supplier

B. Solicited for a purchase order with the supplier

C. Ask the supplier for Verification for the requisition order

D. Used a new supplier since it was a new type of goods

Answers

Answer:

Solicited for a bid from the supplier.

Explanation:

Solicited for a bid from the supplier should Nate have done differently. Thus, option (a) is correct.

What is supplier?

The term supplier refers to supplies of the raw material and the goods. The supplier was the always part of the company to provide the customer the goods and the services. Suppliers provided the  transportation of those materials. Suppliers are the mediator of the supply chain.

A bid is solicited, it signifies the target is actively looking for a buyer and wants to be bought as the supplier. These offers—also known as those that have the support of the management of both companies are frequently referred to as “friendly takeovers.” Solicitation bids, submission bids, and selection bids are the three different categories of bids.

As a result, the solicited for a bid from the supplier have the differently done. Therefore, option (a) is correct.

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Which of the following best describes the job market in social media?

Answers

What’s the possible answers to choose from?

Social media is a computer-based technology that is facilitated by the creation and sharing of ideas.

Job market of social media is gaining popularity and is increasing at a very fast rate. As social media is a valuable tool in today's world. Employers use social media networking tools to find jobs and candidates. A good online presence is good for the job markets.

Hence the option A is correct that is the no. of jobs in social media has tripled in the past years.

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A questionnaire on the negative impact of the coronavirus as one of the socio economic issues of the business

Answers

Answer:

From my understanding,I don't think so

Explanation:

because of the coronavirus from where I'm living those that are selling face mask and hand sanitizer are benefiting more from it than others

Cheggone basic truism of management is that the lower the level of management, the greater the?

Answers

The lower the level of management, the greater the span of control. Span of control refers to the number of subordinates or employees that a manager directly supervises. As we move down the organizational hierarchy, the number of employees under the supervision of a manager tends to increase.

This means that managers at lower levels of management have a wider span of control compared to higher-level managers.

One fundamental principle in management is that the span of control increases as the level of management decreases. The span of control refers to the number of subordinates a manager directly supervises.

At higher levels of management, such as top-level executives, the span of control tends to be narrower. This means that these managers have fewer direct reports to oversee. With a smaller number of subordinates, top-level executives can focus on strategic decision-making and provide guidance to a select group of individuals.

Conversely, at lower levels of management, such as front-line supervisors, the span of control tends to be wider. This implies that these managers are responsible for supervising a larger number of employees who are engaged in more specific tasks. By managing a larger group, lower-level managers can ensure efficient work processes, maintain productivity, and address problems promptly.

For instance, a CEO of a company might have a span of control involving only a few top-level executives, whereas a supervisor in a manufacturing plant might have a span of control encompassing 20 or more workers.

In summary, as we move down the levels of management, the span of control increases, as lower-level managers oversee larger groups of employees.

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with surface-level diversity, differences are immediately observable, easy to measure, and ____.

Answers

Common should be your answer

This is the most logical answer I could come up with given that there was not a list of options.

Hope this helps have an excellent day!

what's the difference between Utility and Marginal Unility?​

Answers

Answer:

One is large the other is small

Explanation:

what opportunities are available for people aspiring to become entrepreneurs?

Answers

to invest in multiple businesses

angel investors

crowdfunding

quality content

foreign markets

the social power of the internet

startup incubators

b) With a quoted interest rate of 4% and a 6% compensating balance, what is the effective rate of interest (use a $100000 loan proceeds amount)? (4 Marks for correct calculation and 1 Mark for correct answer to equal a total of 5 Marks).

Answers

To calculate the effective rate of interest with a quoted interest rate of 4% and a 6% compensating balance, you would subtract the compensating balance from the loan proceeds amount, calculate the interest charged on the actual loan amount, and then divide that by the actual loan amount and multiply by 100. The effective rate of interest in this case is 4%.

To calculate the effective rate of interest, we need to consider the impact of the compensating balance.

Step 1: Calculate the amount of the compensating balance. Since the compensating balance is 6%, we can find it by multiplying the loan proceeds amount ($100,000) by the compensating balance rate (0.06).

Compensating balance = $100,000 x 0.06 = $6,000

Step 2: Subtract the compensating balance from the loan proceeds amount to determine the actual loan amount.

Actual loan amount = $100,000 - $6,000 = $94,000

Step 3: Calculate the interest charged on the actual loan amount using the quoted interest rate of 4%.

Interest charged = $94,000 x 0.04 = $3,760

Step 4: Calculate the effective rate of interest by dividing the interest charged by the actual loan amount and multiplying by 100.

Effective rate of interest = ($3,760 / $94,000) x 100 = 4%

Therefore, the effective rate of interest, taking into account the compensating balance, is 4%.

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A. Canto Lent us $500 by cash *
Which account is being debited and which account is being credited?

Answers

cantos account is being debited and your account is being credited

when an account takes out money it's being debited and when an account is bringing in money it's being credited

how can a reduction in taxation be used to influence aggregate demand​

Answers

Answer:

shifting the aggregate demand curve to the right.

Explanation:

Take the information Gary shared and create a Startup Cost Chart showing the costs involved with developing the app. I do not understand what I'm supposed to do

Answers

According to the U.S. Small Business Administration, the smallest business startup cost is around $3,000, while most home-based businesses cost $2,000 to $5,000.

What is a Startup cost?

Startup costs are the cost incurred while creating a new business. It includes licensing and permits, insurance, office supplies, payroll, marketing costs, research expenses, and utilities.

How to calculate your startup costs:

Calculate your business organization startup costs before you launch.

Determine your startup expenses.

Estimation of how much your expenses will cost.

Add up your expenditures for a full financial picture.

Use your startup cost computations to get startup funding.

Therefore, This is how you can create a Startup Cost.

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What is one major effect of specialization on an economy?
O A. Self-sufficiency becomes more important as many businesses
shut down.
B. Opportunity costs for trade rise as businesses are slow to change.
C. Labor becomes more divided as workers focus on certain skills.
D. Voluntary exchange declines as fewer countries can trade
internationally.

Answers

Answer: It’s C

Explanation: read it before you check it because the order might be different in different test.

The one major effect of specialization on an economy is that the Labor becomes more divided as workers concentrate on definite skills.

What is specialization in an economy?

Specialization is a manufacturing method in which an organization concentrates on producing a narrow range of products in order to increase efficiency.

Specialization has one cardinal determinant on an economy, that the labor becomes more and more divided as workers focus on specific abilities.

Therefore, option C is correct.

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With a command economy, do individuals have choice and flexibility

Answers

No. In a command economy, everything is determined by the government.

Which of the following is not a step in the decision making process
a.Identify Choices
b. MAKE a decision
c.Consult a career coach
d. DEFINE your needs and wants

Answers

Career Coach is wrong (Pretty sure)

What role do career pathways play?
A. Career pathways lay out the academic courses, skills, and knowledge required for a position.
B. Career pathways help students determine whether a position will have information technology as a primary or secondary focus.
C. Career pathways lay out the advantages and disadvantages of potential careers.
D. Career pathways organize jobs into 16 major groups to help students plan their careers.​

Answers

Answer:

I think it's A. but don't depend on me i'm probley wrong

Explanation:

What part do career paths play is The educational requirements, necessary skills, and expertise for a position are outlined in career pathways. As a result, choice (A) is right.

What is meant by Career pathways ?

A career path is a list of steps you should take to advance into new or more senior responsibilities at work during your professional life. Employees are guided toward their ultimate professional ambitions as well as their long-term goals through a series of positions and experiences.

By highlighting their existing professional situation and providing advice on how to improve it, career pathing can increase their levels of engagement and job satisfaction.

An essay about your career objectives is a piece of writing in which you describe the career route you hope to take and the goals you have for yourself. You will discuss your career aims, pertinent accomplishments that help you be more successful in achieving your goals, and how your aspirations can help you advance even farther in the essay.

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Would the biacromial measure be a better assessment for a predictor of CG in women or males? a. Women b. Men

Answers

The biacromial measure is a better assessment for a predictor of CG in males.

What is biacromial breadth?

The biacromial measure is a broad aspect of anthropometry. The biacromial breadth (BAB) is the horizontal length from one acromion process to the other. The acromion is a bony extension of the shoulder blade that lies under the shoulder's point. The biacromial measure is a significant measurement in the study of humans' body proportions. The biacromial measure is a vital component of anthropometry research, and it helps to study individuals of different ages, genders, and ethnicities.

It is mostly used in the analysis of bone structure, especially when comparing genders or ethnicities. The biacromial measure aids in determining the relationship between the bony structures of different human groups.

Biacromial measure in predicting CGThe biacromial breadth (BAB) of both sexes has been found to be related to the circumference of the chest girth (CG). There is a moderate to strong association between CG and BAB in both sexes, according to a study. However, the connection between the two is substantially stronger in males, with the biacromial breadth being the strongest predictor of CG for males. The study found that in males, the biacromial measure had a strong influence on the CG than in females..

The biacromial measure is a significant predictor of the CG in both males and females. However, it is a better assessment for predicting the CG in males than in females. The biacromial measure is more strongly related to the CG in males than females. This is because of the difference in bone structure between males and females.

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Which of the following represents a major shift in current marketing practice?
a. From high fixed costs to low fixed costs
b. From mass marketing to individualized marketing
c. From focusing on a small base of customers to focusing on acquiring many new customers
d. All of the above

Answers

The major shift in current marketing practice is represented by: b. From mass marketing to individualized marketing.

The major shift in current marketing practice is moving from mass marketing to individualized marketing. This shift recognizes the importance of personalized and targeted approaches to reach and engage with customers. Instead of broadly targeting a large audience, companies are now focusing on understanding individual customer needs, preferences, and behaviors to deliver customized marketing messages and offerings.

Individualized marketing allows companies to tailor their marketing efforts to specific customer segments, creating more personalized and relevant experiences. It involves leveraging data and advanced technologies to gather insights about customers, analyze their behavior, and deliver targeted messages through various channels. This approach aims to increase customer satisfaction, improve conversion rates, and foster stronger customer relationships.

Option a, "From high fixed costs to low fixed costs," does not represent a major shift in current marketing practice. While cost optimization is a consideration in marketing strategies, the shift towards individualized marketing is a more significant change in how companies approach their target audience.

Option c, "From focusing on a small base of customers to focusing on acquiring many new customers," is also not a major shift in current marketing practice. Acquiring new customers has always been a key objective for businesses, and while the strategies for customer acquisition may evolve, it does not represent a significant shift in marketing practice compared to the move towards individualized marketing.

Therefore, the correct answer is b. From mass marketing to individualized marketing, as it represents a significant transformation in marketing approaches and strategies.

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