Business, 31.07.2020 21:01 21briannamtimms
When we take taxes into account, MM's 1958 Proposition could no longer hold, and the capital structure can be essential because of:.
a. higher operating income from lower dividends.
b. interest tax shield.
c. higher tax rates on retained earnings than on debt.
d. lower tax rates on dividends than on debt.
Answers: 2
Business, 22.06.2019 11:00, mmcdaniels46867
Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld
Answers: 2
Business, 22.06.2019 22:20, PrisonKing3749
David consumes two things: gasoline (q 1) and bread (q 2). david's utility function is u(q 1, q 2)equals70q 1 superscript 0.5 baseline q 2 superscript 0.5. let the price of gasoline be p 1, the price of bread be p 2, and income be y. derive david's demand curve for gasoline. david's demand for gasoline is q 1equals nothing. (properly format your expression using the tools in the palette. hover over tools to see keyboard shortcuts. e. g., a subscript can be created with the _ character.)
Answers: 1
When we take taxes into account, MM's 1958 Proposition could no longer hold, and the capital structu...
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