Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

A utility company is thought to be permitted to charge prices high enough to cover all costs, comprising its cost of capital. Public service commissions are supposed to take actions to stimulate companies to operate as efficiently as possible to keep costs, therefore prices, as low as possible. Some time ago, AT & T's debt ratio was about 33 percent. Some people (Myron J. Gordon in particular) argued that higher debt ratio would lower At & T's cost capital and allow it to charge lower rates for telephone service. Gordon thought the optimal debt ratio for AT & T's was about 50 percent. Do theories support or refute Gordon's position?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M935062

Have any Question? 


Related Questions in Business Management

Conseco inc has a debt ratio of 055 what are the companys

Conseco, Inc., has a debt ratio of 0.55. What are the company's debt-to-equity ratio and equity multiplier? (Round your answers to 2 decimal places, e.g.12.25.)

Outcomes met with this assignmentafter completing this

Outcomes Met With This Assignment: After completing this course, you should be able to: • identify the critical business functions and how they interact in order to position the organization to be effective in the curren ...

1 create a 12-slide presentation follow the outline on pp

1. Create a 12-slide presentation. Follow the outline on pp. 343-346 for the critical slides of your presentation and their placement. Click here for help accessing a specific page number in your eBook. Hints: Include th ...

Many employers gather and store information on an employees

Many employers gather and store information on an employee's use of email and the Internet. They will then use that information to measure the quality and quantity of an employee's work. Identify one ethical implication ...

Why is firm commitment underwriting riskier than best

Why is firm commitment underwriting riskier than best efforts underwriting method?

Select an organization that once had a noticeable

Select an organization that once had a noticeable competitive advantage and lost it to a competitor, new industry, or new product.  Analyze and think about the competitive advantage and answer the following questions: Wh ...

Consider a region where households produce and consume

Consider a region where households produce and consume musical performances, either live performances or free recorded performances transmitted over the Internet into homes. After accounting for price, the utility from a ...

Business decision making project part 1identify a business

Business Decision Making Project Part 1 Identify a business problem or opportunity at a company where you work or with which you're familiar. This will be a business problem that you use for the individual assignments. I ...

1 explain what is meant by our changing cultural

1. Explain what is meant by our changing cultural landscape. 2. Describe and give examples of demographic, social and cultural changes that are responsible for the growing importance of diversity. 3. Discuss one example ...

Consider defined-benefit retirement plans and

Consider defined-benefit retirement plans and defined-contribution retirement plans and document the primary characteristics of each. Specifically, contrast the responsibilities of the employer in administering each plan ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate