ZuoTi.Pro
Question

aggregation of equity enables Google to utilize debt sporadically. Having low debt enables Google to be...

aggregation of equity enables Google to utilize debt sporadically. Having low debt enables Google to be adaptable with their projects and perhaps go for mor risks, which is in their segment is needed to keep up with competitors and this could be the reason they keep on utilizing this low-debt capital structure. criticize with reasons?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Some cons of using equity as means of financing are as follows:

1. Decreasing P/E ratio of the form. Hence, the value for shareholders goes down

2. ROE is boosted with higher leverage. Google is not able to increase ROE for shareholders by keeping low debt

0 0
Add a comment
Know the answer?
Add Answer to:
aggregation of equity enables Google to utilize debt sporadically. Having low debt enables Google to be...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • aggregation of equity enables Google to utilize debt sporadically. Having low debt enables Google to be...

    aggregation of equity enables Google to utilize debt sporadically. Having low debt enables Google to be adaptable with their projects and perhaps go for mor risks, which is in their segment is needed to keep up with competitors and this could be the reason they keep on utilizing this low-debt capital structure. What you think about the statement? do you agree with statement? provide reasons?

  • Respond to the following prompt with your original thoughts, at least 200 words, utilize academic sources...

    Respond to the following prompt with your original thoughts, at least 200 words, utilize academic sources to support your point. Is the WACC an estimation of the real cost of capital(explicit cost of money) or an opportunity cost tied to a particular decision based on market required returns? You use the following points to discuss this question or utilize your own points. 1. Projects of different levels of risk should have different associated discount rates. 2. The WACC reflects the...

  • Mort Moore founded Moore Plumbing Supply after returning from duty in the South Pacific during World...

    Mort Moore founded Moore Plumbing Supply after returning from duty in the South Pacific during World War II. Before joining the armed forces, he had worked for a locally owned plumbing company and wanted to continue with that type of work once the war effort was over. Shortly after returning to his hometown of Minneapolis, Minnesota, he became aware of an unprecedented construction boom. Returning soldiers needed new housing as they started families and readjusted to civilian life. Mort felt...

  • Moore Plumbing Supply Company Capital Structure Mort Moore founded Moore Plumbing Supply after returning from duty...

    Moore Plumbing Supply Company Capital Structure Mort Moore founded Moore Plumbing Supply after returning from duty in the South Pacific during World War II. Before joining the armed forces, he had worked for a locally owned plumbing company and wanted to continue with that type of work once the war effort was over. Shortly after returning to his hometown of Minneapolis, Minnesota, he became aware of an unprecedented construction boom. Returning soldiers needed new housing as they started families and...

  • Please Use your keyboard (Don't use handwriting) MGT 201 I need new and unique answers, please....

    Please Use your keyboard (Don't use handwriting) MGT 201 I need new and unique answers, please. (Use your own words, don't copy and paste) Assignment Question(s): What are the biggest challenges Norwegian experienced in trying to expand its airline across the globe? (2.5 marks) To what extent did you observe examples of ethnocentric, polycentric, or geocentric attitudes in this case? Provide examples to support your conclusions. (2.5 marks) Use Table 4.4 (Given below) to identify cultural differences that are likely...

  • Sangria Topochico - The Capital Budgeting Decision In December 2012, María Guadalupe, the owner of Sidral...

    Sangria Topochico - The Capital Budgeting Decision In December 2012, María Guadalupe, the owner of Sidral Mundet Sol, had just finished reading a report done by his general manager, Francisco Javier, about the possible investment in a new product line, Sangria Topochico. The idea of Sangria Topochico came about three months earlier when María attended a seminar on youth obesity organized by a local high school that his two children attended. Even though he had often heard of the rising...

  • And there was a buy-sell arrangement which laid out the conditions under which either shareholder could...

    And there was a buy-sell arrangement which laid out the conditions under which either shareholder could buy out the other. Paul knew that this offer would strengthen his financial picture…but did he really want a partner?It was going to be a long night. read the case study above and answer this question what would you do if you were Paul with regards to financing, and why? ntroductloh Paul McTaggart sat at his desk. Behind him, the computer screen flickered with...

  • I need help with my very last assignment of this term PLEASE!!, and here are the instructions: After reading Chapter T...

    I need help with my very last assignment of this term PLEASE!!, and here are the instructions: After reading Chapter Two, “Keys to Successful IT Governance,” from Roger Kroft and Guy Scalzi’s book entitled, IT Governance in Hospitals and Health Systems, please refer to the following assignment instructions below. This chapter consists of interviews with executives identifying mistakes that are made when governing healthcare information technology (IT). The chapter is broken down into subheadings listing areas of importance to understand...

  • TrueGrid manufactures the world’s strongest permeable paver. It’s a 100% permeable, which is an alternative to...

    TrueGrid manufactures the world’s strongest permeable paver. It’s a 100% permeable, which is an alternative to concrete and asphalt. It is permeable solution that allows the water to permeate through the surface and be detained below. It’s able to handle high traffic and heavy loads, so it can go from your drive way all the way to your high traffic 18 wheeler parking lots and everything in between. TrueGrid helps prevent flooding because the biggest reason is there is no...

  • Subject: HRM Introduction and Instructions You have recently been hired as the Director of Human Resources...

    Subject: HRM Introduction and Instructions You have recently been hired as the Director of Human Resources for Wilson Brothers Canada and have HR responsibility for all of the company’s Canadian operations. Bob and John Wilson have asked you to prepare a report for their review focusing specifically on organizational behavior within the company. Review the Wilson Brothers Case Scenario in depth and address the required topic listed below in your analysis report. Marks are allocated for thoroughness of coverage of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT