A firm is analyzing two possible capital structures—30 and 50 percent debt ratios. The firm has total assets of $5,000,000 and common stock valued at $50 per share. The firm has a marginal tax rate of 40 percent on ordinary income
The number of common shares outstanding for each of the capital structures would be ________.
A) 30 percent debt ratio: 30,000 shares and 50 percent debt ratio: 50,000 shares
B) 30 percent debt ratio: 50,000 shares and 50 percent debt ratio: 70,000 shares
C) 30 percent debt ratio: 70,000 shares and 50 percent debt ratio: 100,000 shares
D) 30 percent debt ratio: 70,000 shares and 50 percent debt ratio: 50,000 shares
D
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Which of the following is an asset?
A. Notes Receivable B. Retained Earnings C. Notes Payable D. Common Stock
A ________ is created when a person deposits money in a bank account in his or her own name and holds it as a trustee for the benefit of another person
A) resulting trust B) Totten trust C) spendthrift trust D) testamentary trust
Elmer agreed to act as the conditional guarantor of collection on a debt of $50,000 that Fred owed to Gloria. Fred paid Elmer a premium to serve as surety. If Fred defaults on the debt, what are Gloria's rights against Elmer?
Given an EOQ model with shortages in which annual demand is 4200 units, Co = $160, Cc = $7 per unit per year, and Cs = $25, what is the total annual shortage cost?
A) 296.51 B) 298.53 C) 299.17 D) 285.91