1. What is an advantage of using equity to support the subsidiary? What is a disadvantage? 2....
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1. What is an advantage of using equity to support the subsidiary? What is a disadvantage?
2. If Jim decided to use long-term debt as its primary form of capital to support this subsidiary, should he use dollar-denominated debt or pound-denominated debt?
3. How can the equity proportion of this firm’s capital structure increase over time after it is more established?
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1 An advantage is that retained earnings may be a relatively lowcost method of financing The use of ...View the full answer
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Rustia Melrod
I am a retired teacher with 6 years of experience teaching various science subjects to high school students and undergraduate students. This background enables me to be able to help tutor students who are struggling with the science of business component of their education. Teaching difficult subjects has definitely taught me patience. There is no greater joy for me than to patiently guide a student to the correct answer. When a student has that "aha!" moment, all my efforts are worth it.
The Common Core standards are a useful yardstick for measuring how well students are doing. My students consistently met or exceeded the Common Core standards for science. I believe in working with each student's individual learning styles to help them understand the material. If students were struggling with a concept, I would figure out a different way to teach or apply that concept. I was voted Teacher of the Year six times in my career. I also won an award for Innovative Teaching Style at the 2011 National Teaching Conference.
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