Modigliani and Miller's first article led to the conclusion that capital structure is extremely important, and that every firm has an optimal capital structure that maximizes its value and minimizes its cost of capital.

Answer the following statement true (T) or false (F)


False

Business

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Pure bundling occurs when a firm offers goods both individually and in bundles

Indicate whether the statement is true or false

Business

A weekly payroll summary made from labor time records shows the following data for TMC Company: Employee Classification Marital Status Hourly Rate Regular Hours Overtime Hours C. Collier Direct Married $15 40 2 S. Brown Direct Single $13 40 6 E. Anglin Direct Single $15 40 R. Kues Indirect Married $12 40 3 A. Studer Indirect Married $16 38 Other information:

a. Overtime is payable at one-and-a-half times the regular rate of pay for an employee and is distributed to all jobs worked on during the period. b. Income taxes withheld (FIT) are $50 for employees with $610 or more of gross income in the period and $40 for those who earn less. c. Each married employee contributes $60 for health insurance; single employees contribute $30. d. FICA taxes are 8% on the first $100,00 . of gross pay; FUTA and SUTA are 1% and 4%, respectively, on the first $8,00 . of gross pay. Since this is January, none of the employees have reached the limitations. Required: 1 . Determine the net pay of each employee. 2 . Prepare the journal entries for the following: a. Recording the payroll. b. Paying the payroll. c. Distributing the payroll.

Business

Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing

Indicate whether the statement is true or false

Business

Each of the fifty states has a general incorporation statute that stipulates the articles of incorporation to be used in that state

Indicate whether the statement is true or false

Business