The cost of debt financing results from ________
A) the decreased probability of bankruptcy caused by debt obligations
B) the risk–return trade-off associated with ownership of a firm
C) the costs associated with lenders having less information about a firm's prospects than investors and managers
D) the agency costs of the lenders' monitoring and controlling a firm's actions
D
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In recent years, in light of the technological developments, many exporters have been forced to finance international transactions by taking full or partial payment in some form other than money
A number of alternative forms of payments known as countertrade are widely used. How does a countertrade transaction work? How do barter transactions differ from offset?
Norwood, Inc purchased a crane at a cost of $80,000 . The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation. The crane was purchased on January 1, 2015 and was used 2,700 hours in 2015 and 2,600 hours in 2016. Refer to the information about Norwood, Inc If Norwood uses the double-declining-balance depreciation method, what amount is the
depreciation expense for 2016? a. $14,063 b. $15,000 c. $18,750 d. $20,000
What arguments might be used to persuade shareholders in an acquisition target to reject offers at any price? Are they plausible?
What will be an ideal response?
Marketing should not be budgeted as a percentage of sales but rather as money that is needed to drive sales. Therefore it is part of the business's ________.
A. variable costs B. sales forecast C. fixed costs D. intermediate costs