Liabilities and Stockholders Equity Assignment

Liabilities and Stockholders Equity Assignment

Firms need cash flow for capital spending and new net working capital investments. Internally generated cash flow:

a) Comes from the Financial System.

b) Comes from issuing new stocks, too.

c) Comes from cash that the company has set aside as depreciation and from retained earnings (earnings not paid out as dividends).

d) All of the above

to answer questions 23, 24, and 25: RC Corporation presents the following Please, read this paragraph capital structure at th

to answer questions 23, 24, and 25: RC Corporation presents the following Please, read this paragraph capital structure at the beginning of the year:

Liabilities (Debt) and Stockholders Equity

500 monetary units Current liabilities 1,500 monetary units 1,000 monetary units 5,000 monetary units 8,000 monetary units Long term 1liabilities Common stock Accumulated retained earnings TOTAL

23. We are interested in knowing how much RC will increase its debt capacity if it retains 600 monetary units from this year’s earnings. (Assume the debt to equity ratio keeps constant):

a) At the beginning of the year Debt/Equity 0,33333.

b) If RC retains 600 m. u. and the Debt to Equity ratio keeps constant, then 0,33333 (2,000+Debt)/(6,000+600).

c) ADebt

d) All of the above. (0,33333 6,600)-2,000 200 monetary units.

24. If the firm decides not to change its financial risk and retains the 600 m.u., how much RC may increase its total funds?

a) 600 monetary units

b) 600 200 800 monetary units.

c) 0,33333 monetary units.

d) None of the above

25. Why is this possible: an increase in debt with no increase in financial risk?

a) Financial risk comes from the Debt/Equity ratio.

b) Debt increases and Equity has increased too.

c) Debt/Equity ratio keeps constant

d) All of the above. Get Finance homework help today

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose HelpHub


Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.


Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.


Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.


On Time Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.


Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.


24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Help Hub

Place your order

Fill in the order form and provide all details of your assignment.

Help Hub

Proceed with the payment

Choose the payment system that suits you most.

Help Hub

Receive the final file

Once your paper is ready, we will email it to you.

HelpHub Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HelpHub HelpHub


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HelpHub HelpHub


Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HelpHub HelpHub


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HelpHub HelpHub


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.