Why is debt usually the cheapest finance source?
Question:
Why is debt usually the cheapest finance source?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
Debt is often considered the cheapest source of financing for several reasons 1 Tax Deductibility Interest payments on debt are typically taxdeductibl...View the full answer
Answered By
GERALD KAMAU
non-plagiarism work, timely work and A++ work
4.40+
6+ Reviews
11+ Question Solved
Related Book For
Principles Of Managerial Finance
ISBN: 9781292400648
16th Global Edition
Authors: Chad Zutter, Scott Smart
Question Posted:
Students also viewed these Business questions
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
On November 5, 2003, Eli Colby was looking over his companys financial statements for the year ending October 31, 2003. Belle Air Charter, a small airline charter service company based in Vancouver,...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
How could not having a strategy hurt a brand on social media? What are some content ideas for those who are at the "Awareness" stage of the sales funnel? What does it mean to A/B test on a social...
-
Waterbahn Waterslide Company issued 25,000, 10-year, 6 percent, $100 bonds on January 1, 2014, at face value. Interest is payable each December 31. Show the accounting equation effects and prepare...
-
A finite ring with more than one element and no zero divisors is a division ring.
-
Current Account. Is the current account the same as the balance of trade (BOT)? Give debit and credit examples of current account and BOT transactions by a German automobile MNE.
-
Suppose you and a friend are stranded on an island and must gather firewood and catch fish to survive. Through experience, you know that if each of you spends an entire day on either activity, the...
-
1.2) Suppose (3) is the terminal point, on the unit circle, determined by t. Find the termina point determined by each of the following: (a) -t (b) t+ Ea 2 (c) -t (d) t-
-
What are the conditions under which the WACC is an appropriate hurdle rate for a firms investments?
-
Find some recent projections for the future path of the U.S. government debt as a percentage of GDP. What assumptions are made about government spending, taxes, and economic growth? Do you think...
-
EX 1.17 Java is case sensitive. What does that mean?
-
Grankowski Corporation has provided the following partial listing of costs incurred during November: Marketing salaries $47,000 Property taxes, factory $6,000 Administrative travel $113,000 Sales...
-
8 . A fin of rectangular cross - section with a thickness of 5 mm , a height of 5 0 mm , and a length of 1 0 0 mm is attached to a base with a thermal conductivity of 1 0 0 W / mK . The base...
-
(1 point) Differentiate y = sin x 25 y' = D
-
Organizations are using sustainability innovation to establish a competitive advantage. Explore how these organizations use sustainability to drive innovation. Are there similarities in the...
-
Applying Castellano's Model of Employee Engagement (figure 3.1 in study guide), analyse the root causes of the CH2M HILL's problem and their manifestation. Drivers of Engagement HR SYSTEM...
-
1. A hiker is plotting his course on a map with a scale of 1.00 cm = 3.00 km. If the hiker walks 2.50 cm north, then turns south and walks 1.50 cm, what is the actual displacement of the hiker in km?...
-
An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are...
-
On January 1, 2019, Belle Florist opened a store in an upmarket area of Soho, London. The business is owned by Boris Kimmel, the sole proprietor. During the year, Boris has kept a record of all...
-
Geotherm Energy Ltd. has a net profit margin of 6%, a financial leverage multiplier of 1.5, and a total asset turnover of 1.2. What is the ROE? What is the advantage of using the DuPont system to...
-
Crane Housing PLC has a current ratio of 2.5 and total current assets worth 5 million. Crane housing also has some long-term borrowings where the bank has stipulated that the current ratio of the...
-
Norm and Linda are married, file a joint return, and have one 5-year-old child. Their adjusted gross income is $436,000 . What is their child tax credit for 2021 ?
-
The following data relate to direct labor costs for the current period: Standard costs 7,400 hours at $11.40 Actual costs 6,200 hours at $10.70 The direct labor time variance is a.$13,680 unfavorable...
-
Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the...
Study smarter with the SolutionInn App