when might high debt levels be a benefit to an organization?
Answers
Answer:
the benefitof debt capital is that it allows businesses to leverage a small amount of money into a much larger sum and repay it overtime.
Explanation:
This allows businesses to fund the expansion projects more quickly than might otherwise be possible,theoretically increasing profits at an increased rate.
Therefore, High debt levels can be beneficial to an organization in situations where they can leverage the debt to finance growth, take advantage of low-interest rates, or gain tax benefits.
When the organization is able to generate a higher return on investment than the cost of the debt.
This means that the organization is able to use the borrowed funds to invest in profitable projects or initiatives that generate a higher rate of return than the interest rate on the debt. In this way, the organization can leverage its debt to create value and increase shareholder wealth.
However, it is important to note that high debt levels also come with increased financial risk and can be detrimental to the organization if the investments do not yield the expected returns or if the organization is unable to service the debt. It is therefore crucial for organizations to carefully manage their debt levels and investment decisions.
1. Finance growth: Organizations can use debt to invest in projects, assets, or expansions that generate returns greater than the cost of borrowing. This can lead to higher profits and an increase in the organization's value.
2. Low-interest rates: In a low-interest-rate environment, organizations can borrow at a cheaper cost. This allows them to invest in new opportunities, which can result in growth and increased profitability.
3. Tax benefits: Interest payments on debt are usually tax-deductible, reducing the organization's taxable income. This can lead to lower tax liabilities and increased cash flow, allowing the organization to reinvest in its operations or pay off debt faster.
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Related Questions
a positive npv exists when the market value of a project exceeds its cost. unfortunately, most of the time the market value of a project:
Which of these two values is the most difficult to establish
Answers
A positive NPV (Net Present Value) is a desirable outcome in investment analysis. It means that the present value of expected cash inflows from a project is greater than the present value of its costs. This indicates that the project is expected to generate value for the investor or the company undertaking it.
However, the market value of a project is not always easy to determine. Market value refers to the price that a willing buyer would pay for the project in the current market conditions. It depends on various factors such as demand, supply, competition, and future prospects. The cost of a project is relatively easier to estimate as it involves calculating the expenses that will be incurred to complete the project. This includes direct costs such as labor, materials, and equipment, as well as indirect costs such as overheads, financing, and taxes.
Therefore, the market value of a project is generally considered to be the most difficult value to establish. It requires a high level of expertise, market knowledge, and analytical skills to accurately assess the potential value of a project. A wrong estimation of the market value can result in incorrect investment decisions and financial losses.
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Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The issue price will be $1,000. The tax rate is 35%. If the flotation cost is 2% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield from the amortization of flotation costs. Round your answer to two decimal places. % What if the flotation costs were 11% of the bond issue? Round your answer to two decimal places. %
Answers
Answer:
if the flotation costs were 2%, the after-tax cost of debt is 5.10%
if the flotation costs were 11%, the after-tax cost of debt is 4.63 %
Explanation:
After-tax cost of debt = Market Interest × ( 1 - tax rate)
Calculation of the Market Interest
Hint : Use the time value of money principles
Pv = -$1,000
Pmt = $1,000 × 8 % = $80
P/yr = 1
N = 20
Fv = $1,000
YTM = ?
Using a financial calculator, the market interest is 8%
After-tax cost of debt = Market Interest × ( 1 - tax rate)
= 0.08 × (1- 0.35)
= 0.052 or 5.20 %
If Flotation cost is 2%
Net Receipts after flotation cost = Cost × ( 1 - flotation rate)
= 5.20 % × (1-0.02)
= 5.096 % or 5.10% (two decimal places)
If Flotation cost is 11%
Net Receipts after flotation cost = Cost × ( 1 - flotation rate)
= 5.20 % × (1-0.11)
= 4.628 % or 4.63 % (two decimal places)
Which of these producer activities did you participate in this week? Check all that apply.
U
I served people at a restaurant, hotel, coffee shop, or other business.
I worked in a bank, library, or retail store.
I created art to be sold in an art show
I made a product
I did yard work or other chores for pay.
Answers
Answer:
2nd and 4th
Explanation:
Answer:
2 and 4
Explanation:
How Well Do You Understand Yourself? Decisions
Answers
a service provided by -e-government that requires access to the Internet is _____.
A. RFID tags
B. E-tax returns
C. Radio programming
D. CCTV (Closed circuit TV)
Answers
Answer:
B. E-tax returns
Explanation:
E-tax returns is the electronic filing of tax returns via the internet. It entails online submission of pre-approved tax return forms available on the tax authority's website.
In recent years, governments have put measures to facilitate e-returns. It has simplified the process making it popular among taxpayers. Electronic tax filing has have contributed to having a high number of citizens registering as taxpayers.
The luxury Swiss Chalet hotel general manager (GM) reported to her owner that the hotel's Occupancy Index for the calendar year 2019 was 1. 25. Based upon only this information alone, what MUST be correct?.
Answers
Without additional information, it is not possible to determine the exact occupancy rate.
Was the occupancy rate of the luxury Swiss Chalet hotel above average for the calendar year 2019?Based solely on the information provided, it can be concluded that the luxury Swiss Chalet hotel's occupancy rate for the calendar year 2019 was above average. An Occupancy Index of 1.25 indicates that the hotel's occupancy rate exceeded the baseline or standard level. An index value above 1 suggests a higher occupancy rate compared to the average or benchmark set for the hotel industry. However, without additional information, it is not possible to determine the exact occupancy rate or make further conclusions about the hotel's performance, such as its profitability, guest satisfaction, or overall success.
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true/false. determining the line of commerce that will be affected by a merger involves defining the relevant product or service market.
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True. Determining the line of commerce that will be affected by a merger typically involves defining the relevant product or service market. The relevant market is an essential concept in antitrust and competition law, as it helps assess the potential impact of a merger on competition.
Defining the relevant product or service market involves identifying the specific goods or services that are reasonably interchangeable with each other from the customer's perspective. This includes considering factors such as the characteristics of the products or services, their intended use, and consumer preferences.
By defining the relevant market, regulators and antitrust authorities can analyze the potential effects of a merger on market concentration, competition, and consumer welfare. It helps determine whether the merger is likely to result in a significant reduction in competition or create a dominant market position that may harm competition.
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which one of the following factors would reduce the quantity of money balances that households would want to hold?
Answers
The term that would reduce the quantity of money balances that households would want to hold is an increase in the interest rate.
The increase in interest rates would reduce the amount of money that people would be willing to hold because when the interest rate is high, people would rather put their money in interest-bearing assets rather than hold it in cash.
As the interest rate rises, the opportunity cost of holding money balances rises too.
The opportunity cost is the amount of interest that could have been earned if the money had been invested in some other financial instrument.
So, people would find it unattractive to hold a large amount of money when the interest rate is high.
Therefore, an increase in the interest rate would lead to a reduction in the number of money balances that households would want to hold.
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Which of these items is detrimental to the seller's bargaining position in the purchase contract during contract negotiations
Answers
The items that are detrimental to the seller's bargaining position in the purchase contract during contract negotiations are:
Credit terms and delivery terms and conditionsHow complaints will be resolvedDelivery schedulesHow the furniture will be designedThis is further explained below.
What are negotiations?Generally, When there is a breakdown in communication, the term "negotiation of meaning" is used to describe the effort that must be done by interlocutors in order to come to an agreement with one another.
In conclusion, During the negotiating process for the purchase contract, the following are some of the factors that work against the seller's ability to strike a favorable deal:
Conditions pertaining to both credit and delivery may be found here.How concerns will be addressed and resolvedThe delivery timetablesThe manner in which the furniture will be fashioned.Read more about negotiations
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Joanne is a data entry clerk, age 26, and single.
• Joanne has investment income and a consolidated broker’s statement.
• Joanne is self employed delivering food for Delicious Deliveries on the weekends. She received a Form 1099-NEC and a Form 1099-K. She received additional cash payments of $455. • Joanne uses the cash method of accounting. She uses business code 492000.
• Joanne provided a statement from the food delivery service indicating the fees paid for the year. These fees are considered ordinary and necessary for the food delivery business: o $150 for insulated box rental o $50 for vehicle safety inspection (required by Delicious Deliveries) o $600 for Delicious Deliveries fees
• Joanne also kept receipts for the following out-of-pocket expenses: o $100 for tolls o $120 for car washes o $150 for tickets for illegal parking o $150 for snacks and lunches Joanne consumed while working
• Joanne’s record keeping application shows she has driven a total of 2,500 miles during and between deliveries. 1,200 miles were driven from 1/01/2022 - 6/30/2022, and 1,300 miles were driven from 7/01/2022 - 12/31/2022. She also drove 1,500 miles between her home and the first and last delivery of each day. o She placed her only vehicle, an SUV, in service on 3/15/2020. The total mileage on her SUV for tax year 2022 was 11,000 miles. Of that, 7,000 were personal miles. Joanne will take the standard business mileage rate.
• Joanne took an early distribution from her IRA in April. She used part of the IRA distribution to pay off her educational expenses.
• Joanne is paying off her student loan from 2017. • Joanne is working towards her Masters of Education degree to start a new career as an Associate Professor. She took a few college courses this year at an accredited college.
• If Joanne has a refund, she would like it deposited into her checking account.
26. How many miles can Joanne use to calculate her standard mileage deduction? a. 1,500 b. 2,500 c. 4,000 d. 11,000
27. What is the amount of Joanne's lifetime learning credit? $_______________
28. Joanne will have to pay $________ additional tax because she received the early distribution from her IRA.
Answers
Joanne can use 3,700 miles (1,200 + 1,300 + 1,500) to calculate her standard mileage deduction.
The amount of Joanne's lifetime learning credit cannot be determined from the information provided.
How much additional tax will she have to pay?The additional tax Joanne will have to pay because of the early distribution from her IRA will depend on several factors, including the amount of the distribution, any applicable penalties or exceptions, and Joanne's marginal tax rate.
As the information is sparse, it is not possible to determine the exact amount of additional tax Joanne will have to pay. However, she may be subject to a 10% early withdrawal penalty on the portion of the distribution that was not used to pay for qualified educational expenses.
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A paycheck is issued for $329.40. The paystub reflects an amount earned of $400.00
Answers
The amount that will remain on the paystub after all taxes have been deducted is known as net income. The net profit is $329.40, to sum up.
What does "net income" mean?Net income is the amount that remains in your account after taxes and other withholdings have been deducted from your paycheck. Net income is the amount of money left over after operating costs, administrative expenses, cost of products sold, taxes, insurance, and any other business charges have been paid. Net income, in both business and accounting, is an entity's revenue less costs, depreciation and amortisation, interest, and taxes for a certain accounting period.
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"take hundred now is more valuable than take hundred after one year" explain it
Answers
Answer:
Today's dollar is worth more than tomorrow's because of inflation (on the side that's unfortunate for you) and compound interest (the side you can make work for you). Inflation increases prices over time, which means that each dollar you own today will buy more in the present time than it will in the future.
When an RBT does not know how to perform an intervention or strategy, which of the following is the best course of action?
Answers
When an RBT does not know how to perform an intervention or strategy, the best course of action is to ask for training and supervision on the skill.
There is a paraprofessional certification in behavior analysis called Registered Behavior Technician® (RBT®). RBT Supervisors and/or RBT Requirements Coordinators, who are in charge of all work RBTs do, direct and closely supervise RBTs as they aid in providing behavior analysis services and practice.
A patient care plan developed by a board-certified behavior analyst is supported and carried out by a registered behavior technician. They offer ABA interventions that promote replacement behaviors that are socially acceptable so that clients can develop and enhance their communication, social interaction, and problem-solving abilities.
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What are the three types of money you should use when paying for college, and what type of money are scholarships and grants?.
Answers
Loans, grants, and work-study are the three categories of federal financial aid.
Grants are typically offered based on financial need, whereas scholarships are merit-based and given to students based on their academic performance, extracurricular involvement, field of study, and other factors.
Financial aid is cash that you are given or lent in order to help you pay for college. Financial aid that you don't have to pay back includes grants and scholarships. They are known as gift aid because of this.
Some college finance methods are:
Try to get a scholarship. Obtain a college grant by applying. Like scholarships, grants for college are based on financial need and are not repaid.Federal student loans and private student loans.Work study programmes at colleges.To know more about college scholarship refer to the given link:
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How could government – sponsored grants for the private development of new technologies result in a lower national debt?
Answers
Answer: Making initial development private saves the government from funding all of the research.
Explanation:
A grant refers to an amount of money that is financial assistance thats given by the government or an organization to an individual or firm for a specific purpose. A grant is different from a loan as it isn't meant to be paid back.
Government award grants for the development of technologies, community projects, home insulation etc.
With regards to the question, a government – sponsored grants for the private development of new technologies may result in a lower national debt when the government makes the initial development private thereby saving the government from funding all of the research.
Trevor is a marketing professional in a small firm. He wants to promote his firm’s online shopping website. He targets only those customers in his promotional strategy who use online shopping. Which form of marketing does Trevor demonstrate?
A.
telemarketing
B.
outbound marketing
C.
social marketing
D.
inbound marketing
Answers
Inn bound marketing
Answer:
Ya it is D
Explanation: I got it right so you should too
Conveyor systems present many hazards when in operation. However, when shut down for maintenance, what is especially important?
Answers
Conveyor systems present many hazards when in operation. However, when shut down for maintenance, lockout and tagout the system is especially important.
Getting things from one place to another is the basic goal of a conveyor system. Moving things that are too big or heavy for people to carry by hand is made possible by the design. Transporting goods between locations more quickly via conveyor systems.
This refers to areas on a conveyor where two moving parts, or a moving and a stationary party, are close enough to one another that an accidentally made touch with one of them might grasp at any adjacent loose clothes or body parts and drag them into the system, posing a major threat to safety.
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Suppose that the calculated value of r between cognitive ability and job performance is 0.73. How much variation in job performance is explained by the variation in cognitive ability?
Answers
Answer:
53.28%
Explanation:
The correlation coefficient (r) between cognitive ability and job performance is provided as 0.73. Therefore, the coefficient of determination is calculated as follows:
Coefficient of determination = r² = 0.73² = 0.5329
Therefore, 53.28% can be concluded to be the variation in job performance as explained by the cognitive ability.
One Thursday, you go shopping at H & M. Currently, they are having a 45% off sale on everything in stock. You buy a hoodie.
Answers
The growth factor from the original price of the hoodie to the final price you end up paying at H & M during the 45% off sale is 0.55.
To calculate the growth factor, we need to divide the final price you pay by the original price of the hoodie. Since there is a 45% discount applied to the original price, you end up paying only 55% of the original price.
For example, if the original price of the hoodie was $100, the final price you pay would be 0.55 * $100 = $55. Therefore, the growth factor from the original price to the final price is 0.55.
In short, the growth factor from the original price of the hoodie to the final price you end up paying at H & M during the 45% off sale is 0.55, indicating a reduction of 45% from the original price.
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One Thursday, you go shopping at H & M. Currently, they are having a 45% off sale on everything in stock. You buy a hoodie. What is the growth factor from the original price of the hoodie to the final price you end up paying H & M?
May you help me with this business question I and very struggling
Answers
Answer:
availability of direct deposit
________ is a technique used to predict future outcomes based on historical data and analytics techniques.
Answers
Answer:
predictive analytic
Explanation:
predictive analytic is the use of data and machine learning techniques to identify future outcomes based on historical data.
*Economics*
Which phrase best completes the list?
Types of Expenses — Utilities
Costs vary widely from region to region
Usually take up about 9 percent of a person's income
?
O A. Pay for vital services like water
B. Are paid to the government
O C. Allow a person to buy a home
O D. Do not need to be paid monthly
Answers
Answer:
O A. Pay for vital services like water
Explanation:
Utilities are expenses on essential and vital services common to households and businesses. They include water and sewage bills, electricity bills, and garbage disposal expenses. A firm offering such services generate utility bills. The cost covers a regular period, say mostly monthly.
Heating and internet or data costs are also being considered as utility expenses. They are common and essential for domestic and business use.
Cost-push inflation corresponds to ________ output and demand-pull inflation corresponds to ________ output.
Answers
It should be noted that Cost-push inflation corresponds to lower output and demand-pull inflation corresponds to higher output.
What Is Cost-Push Inflation?Cost-push inflation serves as inflation that do take place when overall prices increase as a result of increases in the cost of wages and raw materials
Demand-pull inflation on the other hand describes the effects of an imbalance in aggregate supply and demand.
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A form of economic efficiency called _ is achieved when resources are directed toward their highest-valued use. (Enter one word in each blank.)
Answers
If resources are allocated to their highest-valued use, allocative efficiency, a type of economic efficiency, is attained.
What is allocative efficiency in the field of economics?Efficiency is the characteristic of a market where all goods and services are distributed among consumers in an economy in an allocative or allocational manner.
The term "allocative efficiency" refers to the allocation of economic resources across different enterprises and industries, each of which upholds the productive efficiency principle, in a way that generates the necessary volume of finished consumer goods.
The meaning of allocative effectiveness When is there allocative efficiency?There is efficient allocation of resources when one party does not gain from a good at the expense of another. Both parties must be willing to exchange the good with one another in order for the trade to be profitable for both parties.
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value of dollar in mexico
Answers
So what can you buy in Mexico with just a few pesos. Given that $100 USD is equivalent to more than 2,000 MXN, you can acquire a whole lot.
The exchange rate between the US dollar and the Mexican peso is currently 18.71, down from 18.96 the day before and 20.43 a year ago. The change from the previous trading day is -1.32%, while the difference from a year ago is -8.44%. Living in Mexico is far less expensive than in the US. Even if there are more and less costly cities in Mexico, given the same degree of resources, you're probably going to live better there than in the United States. Without counting rent, overall consumer prices have decreased by over 100%.
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PLEASE HELP AND QUICKLY!! Why is doing timely reconciliations a key part of internal control activities
A. Checks usually expire after two weeks
B. It is part of the Sarbanes-Oxley legislation
C. It is much easier to correct mistakes if they are caught early
D. It ensures accounts filed with the government are accurate
Answers
D and
Definition:
Reconciliation is the process of comparing transactions and activity to supporting documentation. Further, reconciliation involves resolving any discrepancies that may have been discovered.
Purpose:
The process of reconciliation ensures the accuracy and validity of financial information. Also, a proper reconciliation process ensures that unauthorized changes have not occurred to transactions during processing
Answer: c
Explanation:
just got the answer wrong because of the other “answer” on this question
Jasmine opens her monthly bank statement and is thrilled to find she has more than $10,000 in her savings than she expected. Since it is late in the evening and past banking hours when she opened her mail, Jasmine does nothing to immediately rectify the error. The bank does not realize its mistake and Jasmine does nothing over the next couple days. In certain states, Jasmine may be guilty of
Answers
Answer:
larceny or theft
Explanation:
Assuming the bank does not realize its mistake and Jasmine does nothing over the next couple days. In certain states, Jasmine may be guilty of: theft.
What is theft?Theft can be defined as the act of stealing or taking what it is not yours.
Based on the scenario Jasmine will be quilty of theft because she refuse to notify the bank after noticing that the money she has in her bank is more than she expected.
Therefore Jasmine may be guilty of: theft.
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What was the opening price of Dow Jones Industrial Average on Sep 28, 2017 in the format of XXXXX.XX?
Answers
The starting price was $21080.28.
Calculation
On May 30, 2017, the Dow Jones Industrial Average was:
The Dow Jones Industrial Average finished at 21029.47 on May 30, 2917, a decrease of 50.81, according to valueline.com.
Index of closure: 21029.47+ downward motion = 50.8121080.28 is the opening index.According to this, the starting price was 21080.28.
The stock performance of 30 major firms that are listed on American stock exchanges is tracked by the Dow Jones Industrial Average. It is an index of stock price. The S&P 500 Index and the NASDAQ are two more.
The day's initial average price before trading began is represented by the starting index. The price must have fluctuated, moving up and down, while trade. By adding back, it can be deduced from this closing index data that the opening price was higher than the closing price by 50.81, or around 51 basis points.To Learn more about Averages and Opening Price, Click the links.
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it is likely that ldh activity was lost or gained in each step of purification. describe one possible explanation for the loss or gain of activity that you observed in each step.
Answers
It is possible that LDH activity was lost or gained in each step of purification due to various factors. One possible explanation for the loss of activity could be due to the degradation of the enzyme during the purification process.
This could occur if the enzyme is not properly stored or handled, or if it is exposed to extreme conditions such as high temperatures or pH levels. Another possible explanation for the loss of activity could be due to the removal of necessary cofactors or inhibitors that are required for the enzyme to function properly. On the other hand, the gain of activity could be due to the removal of inhibitors that were previously blocking the enzyme's activity, or the addition of necessary cofactors that were not present in the original sample. Additionally, the gain of activity could be due to the concentration of the enzyme during the purification process, which would increase the overall amount of LDH activity in the sample. Overall, there are several possible explanations for the loss or gain of LDH activity during each step of purification, and further experimentation may be necessary to determine the exact cause.
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if the seller has already sent a counteroffer to one prospective buyer and then receives another offer from a second prospective buyer that is even better:
Answers
He/she should withdraw the first counter before answering the new offer.
When the seller receives a better offer from a second prospective buyer after sending a counteroffer to the first buyer, it is advisable to withdraw the first counteroffer before responding to the new offer. Here's why:
1. Maximizing leverage: Withdrawing the first counteroffer gives the seller maximum leverage in negotiations with the second buyer. By removing any existing commitments or obligations to the first buyer, the seller can negotiate from a position of strength and potentially secure more favorable terms or a higher price.
2. Protecting interests: By withdrawing the first counteroffer, the seller can carefully evaluate the new offer without being bound by previous negotiations. This ensures that the seller can make an informed decision that aligns with their best interests, taking into account the improved terms offered by the second buyer.
3. Avoiding legal complications: If the seller were to accept the second offer without withdrawing the first counteroffer, it could create legal complications and potential conflicts between the two prospective buyers. By formally withdrawing the initial counteroffer, the seller can avoid any confusion, disputes, or legal issues that may arise from accepting multiple offers simultaneously.
In summary, withdrawing the first counteroffer before responding to a new and better offer allows the seller to maximize leverage, protect their interests, and avoid potential legal complications, enabling them to negotiate and secure the most advantageous deal.
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