Why can an M&A fail? O a. Economies of scale O b. shortcomings of the due diligence process, problems not discovered O c. Higher debt taking capability O d. Tax allowances
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- ___________ is the possible loss of revenue resulting mainly from a decline in the revenue base. Group of answer choices Investment risk Debt-related risk Revenue risk Insurance riskQ.Briefly explain the over-investment problem from the perspective of the agency costs between debtholders and equity holders.Please explain: Managers estimate bad debt expense based on which of the following? professional judgement, revenue recognization principle, histroical-cost assumption, or cost constraint?
- Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to useThinking about the definition of the term "flotation costs," should we expect the flotation costs for debt to be significantly lower than those for equity? Why or why not? how can the answer be supported.Which of the following may motivate managers to decrease the size of the allowance for doubtful debts Place answer in the marked square -> A performance measure based on sales revenue A performance measure based on gross profit A performance measure based on NPAT 1 2 4 All of the above 5 None of the above
- kindly help with these questions 3. MM hypothesis proposes that profit installment: a.has a positive effect on the estimation of firm b. adversely affects the estimation of a firm c. no affects the estimation of firm. d.none of these 4. Leftover hypothesis of profit is relevant just when: a. The expense of held income lower than the expense of obligation b. the expense of held income is higher than the expense of obligation c. the expense of held income is equivalent to the expense of obligationIntermediaries can reduce positive income (maturity) gaps by interest sensitive and by _the proportions of their liabilities that are the proportion of their assets that are interest sensitive. Select one: O a increasing; decreasing O b. decreasing: increasing O c. decreasing decreasing O d. increasing; increasingWhy does the use of debt lower the profit margin and the ROA?
- Why is the acid test ratio a more rigorous test of short-term solvency than the current ratio? A. The quick ratio eliminates prepaid expenses for the denominator.B. The quick ratio eliminates prepaid expenses for the numerator.C. The quick ratio eliminates inventories from the numerator.D. The quick ratio considers only cash and marketable investments as current assets.E. The quick ratio eliminates revenue from the numerator.Subsidy on inputs (A) increase inflation(B) decrease inflation(C) does not directly affect economic growth or cannot be determinedWhat is an earnings management benefit from showing a reduced figure for bad debt expense?
