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NEW QUESTION: 1
Select the option that is NOT true of opportunities:
A. Expected Revenue is automatically generated by multiplying the Amount field by the Probability Field (I do not need to add this figure)
B. Probability is the confidence factor that I will win the Opportunity, and is typically based on the Stage Value
C. The amount field is not for the estimated amount of the sale, but dollar amount I will pay Bill Nuttall for processing my order.
D. Close Date should be the "best" guess as to when I will close a deal
E. I should use consistent naming conventions when identifying my opportunities (ex: Account Name
-
Package offered)
Answer: C
NEW QUESTION: 2
A company compares purchasing Windows 8.1 Pro Upgrade through an existing Select Plus agreement to purchasing Windows 8.1 Pro preinstalled on a new computer.
You need to identify the rights available through each purchasing method.
What should you identify? To answer, select the available rights for each purchasing method in the answer area.
Answer:
Explanation:
Explanation
NEW QUESTION: 3
The trade-off theory of capital structure implies that:
A. none of these answers.
B. managers are uncomfortable with either too much debt or too much equity and hence, tend to choose debt ratios around 0.40 to 0.60.
C. firms will use debt up to the level where the flotation cost of new debt equals that of issuing more equity, thus minimizing the costs of raising capital.
D. firms issue debt up to the level where the total value added by the debt tax shield is offset by expected bankruptcy costs.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
According to the trade-off theory of capital structure, firms issue debt up to the level where the additional value added by the debt tax shield for another dollar of capital raised is offset by expected bankruptcy costs. This ensures that with only these two effects, the firm's stock price is maximized. Clearly, at this point, the total value added by the debt tax shield exceeds the expected bankruptcy costs.