which of the following is a characteristic of debt financing?group of answer choicesit lowers net incomeincreases return to equity holdersincreases leverageall of the above g

Answers

Answer 1
Answer:

The correct option is d. All of the above are characteristics of debt financing. Debt financing refers to raising funds by borrowing money, often from banks or other financial institutions. When a company borrows money, it must make regular payments on the loan, which reduces its net income.

Debt financing also increases the return to equity holders, as the cost of debt is generally lower than the cost of equity. When a company takes on debt, it increases its leverage, which means it has a higher level of debt relative to equity.

While debt financing can provide a company with access to funds that it may not have been able to raise otherwise, it also comes with risks. If a company takes on too much debt, it can become difficult to make payments, which can lead to financial distress or bankruptcy.

Therefore, it is important for companies to carefully consider their debt levels and ability to make payments before taking on debt financing. The correct option is d.

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A customer calls to ask how often he should change the oil in a lawn mower engine. After asking the customer for the manufacturer's name and the model number of the lawn mower engine, you check the service manual for the engine. The engine manufacturer recommends that you change the oil after every 50 hours of light- or normal-duty operation, or after every 25 hours of heavy-duty operation. The customer tells you that he is the groundskeeper at a local golf resort. He uses this mower only to trim the greens on the course. He mows the greens 2 times per week; each time, it takes a total of 5 hours to complete the job. The golf course is open 30 weeks out of the year. If you consider the mowing of the golf course to be normal-duty operation, how often should you tell the customer to change the oil in the mower engine? (Hint: You'll need to calculate the total number of hours the groundskeeper uses the mower per year. Assume that it's now the beginning of the 30-week golf resort season.)a. The oil should be changed a total of 2 times during the 30-week season.
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Answers

Given:
mows the green 2 times per week; 5 hours total to complete the job.
golf course is open 30 weeks out of the year.

30 weeks * 2 times per week = 60 times
60 times * 5 hours each time = 300 hours total

300 hours / 50 hours of normal duty  = 6 times oil change

c.) The oil should be changed a total of 6 times during the 30-week season.

Regal Corporation has a component that is a discontinued operation. The revenues and expenses of the component were $120,000 and $100,000 respectively. The component was sold with a resulting loss of $80,000. The tax rate is 40%. What is the total gain or loss on discontinued operations (net of tax effects) that will be reported on the income statement.

Answers

Answer:

$36,000 loss

Explanation:

net effect after taxes = [(operation's revenue - operation's expenses) - gain/loss resulting from sale] x (1 - tax rate)

= [($120,000 - $100,000) - $80,000] x (1 - 40%) = ($20,000 - $80,000) x 60% = -$60,000 x 60% = -$36,000 or $36,000 loss

Which of the following is a poor label for a category level file folder?

Answers

For a level file folder, your categorization must be clear and precise so it would be easier for you to store your information.

a poor label for this is only using an alphabet rather than full word

Bad example : Using the letter 'R' to replace 'reimbursement' folder, it's best to just label it as reinbursement

The purpose of the abstract of title is to : A. make sure that the street name of the property is correct.
B. verify that the lender has sufficient funds for the loan.
C. verify that the person selling the property is really the owner.
D. begin the purchase process.

Answers

The correct answer to the question stated above is obviously letter C. verify that the person selling the property is really the owner. 

The sole and the very purpose of the abstract of title is to : 
verify that the person selling the property is really the owner. 

The amount you owe in state income tax is based on:a. how much you spend each year.
b. your yearly earnings.
c. the value of your home.
d. how long you have lived in the state.

Answers

B) Your yearly earnings.

3. There are concerns about an increase in unemployment due to the slowdown in manufacturing. a) What effect would an increase in the unemployment rate have on the equilibrium wage? (3 marks)

Answers

Equilibrium wage means that it is the wage paid on employees where supply and demand are equal.

All persons looking for work at the going wage will be able to find jobs in an equilibrium setting.

an increase in the unemployment rate will result to a decrease on the equilibrium wage.
The equilibrium wage is a wage that is a result of a equilibrium of demand and supply, meaning that a lower or higher wage would change the demand or the supply.

If there is an increase in unemployment, then it means that the supply of workers has increased, while the demand for them is steady; this would drive the equilibrium prize down