1. What is an advantage of using equity to support the subsidiary? What is a disadvantage? 2....
Question:
1. What is an advantage of using equity to support the subsidiary? What is a disadvantage?
2. If Jim decided to use long-term debt as its primary form of capital to support this subsidiary, should he use dollar-denominated debt or pound-denominated debt?
3. How can the equity proportion of this firm’s capital structure increase over time after it is more established?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (7 reviews)
1 An advantage is that retained earnings may be a relatively lowcost method of financing The use of ...View the full answer
Answered By
Rustia Melrod
I am a retired teacher with 6 years of experience teaching various science subjects to high school students and undergraduate students. This background enables me to be able to help tutor students who are struggling with the science of business component of their education. Teaching difficult subjects has definitely taught me patience. There is no greater joy for me than to patiently guide a student to the correct answer. When a student has that "aha!" moment, all my efforts are worth it.
The Common Core standards are a useful yardstick for measuring how well students are doing. My students consistently met or exceeded the Common Core standards for science. I believe in working with each student's individual learning styles to help them understand the material. If students were struggling with a concept, I would figure out a different way to teach or apply that concept. I was voted Teacher of the Year six times in my career. I also won an award for Innovative Teaching Style at the 2011 National Teaching Conference.
4.90+
4+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
What is an advantage of floating rate preferred stock for the risk-averse investor?
-
What is an advantage of using a stem-and-leaf plot instead of a histogram? What is a disadvantage?
-
What could be an advantage of using an anion exchange column based on a quaternary amine [i.e., resinN+ (CH2CH3)3] as opposed to a tertiary amine [resinNH+ (CH2CH3)2]?
-
Q1: How would a supply chain management and customer relationship management system help the company? What are limitations? 1 answer
-
What is Rule #2 when dealing with foreign exchange? Why is it important?
-
For each account listed in Exercise 4-3, indicate whether its normal balance is a debit or a credit.
-
The government has issued a bond that will pay \($1,000\) in 25 years. The bond will pay no interim coupon payments. What is the present value of the bond if the discount rate is 10 percent?
-
A company has sales of $1,000,000, variable costs of $250,000, and fixed costs of $600,000. Compute the following: 1. Contribution margin ratio. 2. Break-even sales volume. 3. Margin of safety ratio....
-
On September 12, Vander Company sold merchandise in the amount of $7,400 to Jepson Company, with credit terms of 3/10, n/30. The cost of the items sold is $4,800. Jepson uses the periodic inventory...
-
X Ltd. has 10 lakhs equity shares outstanding at the beginning of the accounting year 2016. The appropriate P/E ratio for the industry in which D Ltd. is 8.35. The earnings per share is Rs. 15 in the...
-
Newark Co. is based in the U.S. Approximately 30% of its sales are from exports to Portugal, and the company has no other international business. It finances its operations with 40% equity and the...
-
During a conflict in the Middle East, some MNCs capitalized on opportunities to rebuild the damaged areas. However, some of their employees were kidnapped by local militant groups. How should an MNC...
-
(a) Is there a trend between the years of 60 and 68 years of age? (b) What happens to the frequency of death as the age of 74 is reached? (c) What is the approximate year when the males lifespan...
-
The ionic compound AgNO3 is soluble in water. Calculate theosmotic pressure (in atm) generated when 12.6 grams of silvernitrate are dissolved in 90.3 mL of an aqueous solution at 298 K.The vant Hoff...
-
Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($450.009) Expenses: Wages and salaries ($11,900 + $126.00q) Supplies ($5.00q) Equipment rental ($2,200...
-
Stinler Corporation manufactures curtains for retail stores and for individual customers. The retail chain buys 70% of the curtains produced. The individual customers purchase curtains in...
-
Matter Practice Exercise The Eiffel Tower in Paris is 324 m tall, including a 24-m television antenna that was not there when the tower was built in 1889. What is the height of the Eiffel Tower in...
-
what ways can a clear understanding of organizational objectives and strategic goals enhance the efficacy of business writing? Provide examples of how a company's mission statement could influence...
-
Some economists argue that pure monopolists will purposely avoid the price-output combination that will maximize their profits. Explain how this less-than-maximum profit behavior could be rational.
-
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
-
When considering the implementation of a project in one of various possible countries, what types of tax characteristics should be assessed among the countries?
-
A project in South Korea requires an initial investment of 2 billion South Korean won. The project is expected to generate net cash flows to the subsidiary of 3 billion and 4 billion won in the 2...
-
Marathon, Inc., considers a one-year project with the Belgian government. Its euro revenue would be guaranteed. Its consultant states that the percentage change in the euro is represented by a normal...
-
A W M E R A S E S Given the tree above, What are the ANCESTORS of node P? What are the CHILDREN of node R? What is the height of node M? How many nodes are in subtree L? How many subtrees have...
-
help on ArrayDeck java but only for Part 1 -public arrayDeck -Card peekTop -Deck copy - int size -public void outshuffle -public void inshuffle -string toString -public main ,to test code ...
-
Introduction Brief biography of Vincent van Gogh Vincent van Gogh was a Dutch artist who is widely recognized as one of the most famous and influential painters in the history of Western art. He was...
Study smarter with the SolutionInn App