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Dmitrij [34]
2 years ago
10

Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The stock is

sue would have no effect on total assets, the interest rate Taggart pays, EBIT, or the tax rate. Which of the following is likely to occur if the company goes ahead with the stock issue?
a. The ROA will decline.
b. Taxable income will decrease.
c. The tax bill will increase.
d. Net income will decrease.
e. The times interest earned ratio will decrease.
Business
1 answer:
shutvik [7]2 years ago
4 0

Answer:

Option c. is correct

Explanation:

A stock is an investment that denotes an ownership share in a company. Purchasing a company’s stock means purchasing a small piece of that company that denotes a share.

In the given question, if the company goes ahead with the stock issue that would not affect total assets: the interest rate Taggart pays, EBIT, or the tax rate then the tax bill will increase.

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Sally's Chocolate Company makes gourmet cupcakes which are sold by the dozen. Compute the standard cost for one dozen cupcakes,
Andrej [43]

Answer:

The correct answer is $15.69.

Explanation:

According to the scenario, computation of the given data as follow:-

We can calculate the cupcake sold by the dozen by using following formula:-

Cost for a dozen cupcake = Direct material  + Direct labor + Factory OH

Where,

Direct material = 4.25 × $0.56 = $2.38

Direct labor = 1.10 × $8.30 = $9.13

Factory overhead = 1.10 × $3.80 = $4.18

By putting the value in the formula, we get

= $2.38 + $9.13 + $4.18

= $15.69

6 0
2 years ago
easynotrcards Under a fixed exchange rate regime, if the domestic currency is initially undervalued, that is, above par, the cen
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Answer:

D) foreign; domestic

Explanation:

The central Bank can improve the domestic currency by using the reserves. If the domestic currency undervalued the central bank may intervene to sell the Foreign currency and purchase the domestic currency, which will increase the demand of domestic currency and increase the supply of foreign currency in the market which will improve the value of domestic currency and undervalue the foreign currency.

7 0
2 years ago
Read 2 more answers
Karen Most has a federal tax levy of $2,100.50 against her. If Most is single with two personal exemptions and had a take-home p
GREYUIT [131]
2 because Karen already had done the federal tax levy of 2100.50 so I don’t matter so the answer is 2
5 0
2 years ago
You are the manager of a midsized company that assembles personal computers. You purchase most components—such as random access
lapo4ka [179]

Since the company is a mid sized company, with the increase in the price of the inputs of the RAM, the price of the RAM will definitely increase.

<u>Explanation:</u>

1) Since the price of the inputs of a particular good are one of the most important factors which determine the price of the goods, so with the increase in the inputs of the price of the inputs of the good, the price of the good will increase.

2) With the fall in the income of the consumer, the expenditure of the consumer will also decrease. So the demand of the RAM will fall because of two reasons a) increase in the price of RAM and 2) with the fall in the income of the consumer.

6 0
2 years ago
A political pundit argues that the government should impose a tariff on tires because they are a necessary input into the produc
valentina_108 [34]

Answer:

The correct answer is letter "A": National-security argument.

Explanation:

The National-security argument is a point of view that promotes the imposition of quotas and tariffs on imports related to national security in an attempt to boost domestic production on the same items. This situation will cause that in front of war the country will produce its own supplies to meet effectively its demand instead of relying on other countries to provide them with those goods. Most protectionist countries tend to support this idea.

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