Finance

In the traditional approach to capital structure, as the amount of deb

In the traditional approach to capital structure, as the amount of debt increases in a firm’s capital structure, ________. A) the cost of equity rises faster than the cost of debt B) the cost of debt rises faster than the cost of equity C) debt becomes less risky D) equity cost is unaffected     […]

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Date: September 19th, 2020

Underwriter generally places non-solicitation advertisements in the Wa

Underwriter generally places non-solicitation advertisements in the Wall Street Journal and/or other important newspapers notifying the public of the availability of an issue. These are called _____. a. tombstone ads b. headstone ads c. notifications of availability d. bond issue schedules     ANSWER A

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Date: September 19th, 2020

Northwest Packing Inc. estimates the following expenditures: total shi

Northwest Packing Inc. estimates the following expenditures: total shipping costs of $1,100; wages paid to workers of $9,600; overhead costs of $4,300; raw materials of $5,000; and, dividends and interest paid of $2,200. What is the total production cost from all of these costs? A) $22,200 B) $21,100 C) $20,100 D) $20,000     ANSWER […]

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Date: September 19th, 2020

Southwest Distribution Inc. estimates the following expenditures: inte

Southwest Distribution Inc. estimates the following expenditures: interest paid of $17,500; wages paid to workers of $74,600; overhead costs of $12,300; raw materials of $55,000; shipping costs of $7,100 and dividends paid to common stockholders of $15,000. What are the total production costs? A) $141,900 B) $149,000 C) $166,500 D) $181,500     ANSWER Answer: […]

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Date: September 19th, 2020