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dexar [7]
2 years ago
13

The general rule for using the weighted average cost of capital (WACC) in capital budgeting decisions is to accept all projects

with Multiple Choice rates of return greater than or equal to the WACC. rates of return less than the WACC. rates of return equal to or less than the WACC. positive rates of return.
Business
1 answer:
MrRissso [65]2 years ago
6 0

The general rule is accepting all projects whose rates of return is greater than or equal to the WACC for a capital budgeting decisions

<h3>What is a weighted average cost of capital?</h3>

This means the rate that a firm is expected to pay on average to all its security holders to finance its assets.

Because the weighted average cost of capital represent the firm's opportunity cost, then, it is used by people to evaluate investment opportunities.

Therefore, the Option A is correct.

Read more about WACC

<em>brainly.com/question/25566972</em>

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Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $15.00, $6.00 and $3.20.
Umnica [9.8K]

Answer:

P0 = $45.299899  rounded off to $45.30

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

  • D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on
  • g is the constant growth rate in dividends
  • r is the discount rate or required rate of return

P0 = 22 / (1+0.19)  +  15 / (1+0.19)^2  +  6 / (1+0.19)^3  + 3.2 / (1+0.19)^4  +  

[(3.2 * (1+0.04) / (0.19 - 0.04)) / (1+0.19)^4]

P0 = $45.299899  rounded off to $45.30

Read more on Brainly.com - brainly.com/question/22666091#readmore

7 0
3 years ago
quinn is going to the grocery store and will use her credit card because she doesn't have any cash in her checking account. what
sammy [17]

Transfer cash from savings to checking because monthly expenses should always be made with cash.

The most critical principle for using credit cards is to continually pay your invoice on time and complete it.

Following this easy rule assist you to keep away from interest charges, past due prices, and bad credit score scores.

By means of paying your invoice completely, you will avoid interest and construct towards an excessive credit score score.

In step with our recent survey, 3 out of four consumers within the usa choose credit cards based totally on the attraction of interest fees, non-public records and fraud safety and rewards offers.

Learn more about savings here: brainly.com/question/15279000

#SPJ4

6 0
1 year ago
The central bank buys $15,000 worth of bonds in the open market from Christopher, who
vladimir2022 [97]

Answer:

(a) What is the amount by which Carla Bank's liabilities have changed?

Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).  

(b) Calculate the change in required reserves for Carla Bank.

Carla Bank's reserves must increase by $15,000 x 5% = $750

(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?

Carla Bank can loan $15,000 x 95% = $14,250

(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.

Money multiplier = 1 / 5% = 20

The money supply has the potential to increase by $15,000 x 20 = $300,000

(e) How will the change in the money supply in part (d) affect aggregate demand in the short run? Explain.

Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.

4 0
2 years ago
Round 1/3 of who can answer the fastest (part 2)
faust18 [17]

Answer:

1st

Explanation:

3 0
3 years ago
Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.90, but management expects to reduce the p
GrogVix [38]

Answer:

The price of the stock is $66.5

Explanation:

The constant growth model of the DDM approach will be used to calculate the price of such a stock today.

The formula for the constant growth model is,

P0 or V = D0*(1+g) / r - g

As the growth rate in the company's dividedn is negative, the growth rate will be -5%.

The price of the stock is,

P0 = 11.9 * ( 1 - 0.05) / 0.12 + 0.05

P0 = $66.5

6 0
3 years ago
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