List and briefly explain at least two important reasons why capital structures tend to differ between industries and even companies within the same industry
What will be an ideal response?
Answer: There are several reasons why firms use more or less debt in their capital structure. Firms facing high tax burdens may find the tax shield from interest especially valuable. Firms with relatively safe businesses (i.e. low bankruptcy costs) and a low rate of return on assets such as electric or gas utilities may use leverage to boost return on equity. Other businesses may have an especially strong need to reassure their customers that they will not go out of business (high bankruptcy costs.)
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On November 1, 2019, Alpha Omega, Inc. sold merchandise for $18,000, FOB destination, with payment terms, n/30. The cost of goods sold was $5,580. On November 3, the customer returns on this sale amounted to $7,200. The company received the balance on November 9, 2019. Calculate the gross profit from these transactions.
A) $2,232 B) $7,452 C) $5,580 D) $3,348
A group of students had dinner at a local restaurant. The total bill for the dinner was $364.99. Each student paid his/her equal share of the bill, which was $21.47. How many student’s were at the dinner?
A. 124 B. 365 C. 17 D. 22
Telemarketing involves the use of trained personnel to conduct planned, measurable marketing activities directed at targeted groups of consumers.
Answer the following statement true (T) or false (F)
As Hofstede’s research became dated, Project ______ confirmed his dimensions are still valid today and extended and expanded them.
A. HOME B. GLOBE C. EARTH D. WORLD