Answer:
The correct answer is D. Is the return investors require on the total assets of the firm.
Explanation:
The Weighted Average Capital Cost (WACC) is a financial measure, which has the purpose of encompassing in a single figure expressed in percentage terms, the cost of the different sources of financing that a company will use to fund a specific project.
To calculate the WACC, it is necessary to know the amounts, interest rates and tax effects of each of the selected sources of financing, so it is worth taking the time to analyze different combinations of these sources and take the one that provides the lower figure
.
Comparatively, without going into the detail of the project evaluation, "the WACC must be less than the profitability of the project to be funded" or expressed in another order, "the project performance must be greater than the WACC."
Answer:
i= 8% annual compunded
Explanation:
Giving the following information:
Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement.
We need to calculate the interest rate required to reach the $1 million goal in 18 years without any additional deposit.
FV= PV*(1+i)^n
Isolating i:
i= [(FV/PV)^(1/n)] - 1
i= [(1,00,000/250,000)^(1/18)] - 1= 0.08
i= 8% annual compunded
Answer: D. Both thought processes are linear
Explanation: I think I'm not too certain.
Answer:
operating exposure
Explanation:
Based on the scenario being described within the question it can be said that the term being mentioned is known as operating exposure and deals with the company's operations over various months or years and the changes incurred due to unexpected changes in the exchange rate. The exchange rate is the price at which one currency is traded for another. Drastic changes in these rates can cause assets value to decline drastically.
Answer:
- <em>As explained below, given that the score of the person is among the 0.03125 fraction of the best applicants, </em><u><em>he can count on getting one of the jobs.</em></u>
<em></em>
Explanation:
The hint is to use <em>Chebyshev’s Theorem.</em>
Chebyshev’s Theorem applies to any data set, even if it is not bell-shaped.
Chebyshev’s Theorem states that at least 1−1/k² of the data lie within k standard deviations of the mean.
For this sample you have:
- mean: 60
- standard deviation: 6
- score: 84
The number of standard deviations that 84 is from the mean is:
- k = (score - mean) / standar deviation
- k = (84 - 60) / 6 = 24 / 6 = 4
Thus, the score of the person is 4 standard deviations above the mean.
How good is that?
Chebyshev’s Theorem states that at least 1−1/k² of the data lie within k standard deviations of the mean. For k = 4, that is:
- 1 - 1/4² = 1 - 1/16 = 0.9375
- That means that half of 1 - 0.9375 are above k = 4: 0.03125
- Then, 1 - 0.03125 are below k = 4: 0.96875
Since there are 70 positions and 1,000 aplicants, 70/1,000 = 0.07. The compnay should select the best 0.07 of the applicants.
Given that the score of the person is among the 0.03125 upper fraction of the applicants, this person can count of geting one of the jobs.
