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1 year ago

The ________ is management’s minimum desired rate of return on a capital investment.

Business

1 answer:

NeTakaya1 year ago

6 0

The <u>discount rate</u> is management's minimum desired rate of return on capital investment.

Discount rate. "management's minimum preferred rate of return on an investment'' is greatly described by using the following terms authentic. Internet gift price and the internal rate of return are examples of discounted cash waft fashions utilized in capital budgeting decisions. NPV will continually decrease.

When evaluating capital funding initiatives, if the inner fee of going back is much less than the required rate of return, the undertaking can be commonplace. Whilst selecting a capital investment task from three options, the undertaking with the best internet present cost will constantly be optimal.

The payback method commonly specializes in profitability and no longer time. One advantage of the internal rate of return is that it considers the time price of money. One drawback of the payback method is that it no longer considers the time value of money.

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Ula purchased stock in Purple, Inc., six years ago for $150,000. Purple has assets with a value of $225,000 ($175,000 basis) and

elena55 [62]

Answer:

$15,000 gain

Explanation:

Assets with a value of $225,000

Remaining asset (cash) to Ula ($25,000)

Purple liabilities ($60,000)

Balance $140,000

Balance Brought forward $140,000

Remaining asset (cash) to Ula $25,000

Ula purchased stock ($150,000)

Balance $15,000 gain

$225,000-$25,000-$60,000=$140,000+$25,000-$150,000=$15,000 gain

Therefore we have $15,000 gain.

3 0

3 years ago

Assuming the correlation between the annual returns on the two portfolios is indeed zero, what would be the optimal asset alloca

den301095 [7]

Since you provide no relevant number,

In order to find out the optimal Asset allocation, you should find out which investment opportunities that Provide the highest return with the lowest standard deviation in the risk department

hope this helps

4 0

3 years ago

The entity that promises to make the interest and maturity payments for a bond issue is called the:.

vichka [17]

The entity that pledges to make the interest and maturity payment for bond issues is called the <u>issuer.</u>

<u></u>

<h3>Who is a Bond issuer?</h3>

A bond is a completely fixed instrument that reflects an investor's debt to a borrower.

Bonds terms and conditions include the end date when the capital of the loan is scheduled to be paid to the bond owner with a fixed or variable interest payment.

Bond Issuers are businesses or entities that generate and take loans from people who buy bonds in exchange for periodic interest and repayment of the principal amount when the bonds mature.

Learn more about who is a Bond issuer here:

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5 0

2 years ago

A company has sales of $752,800 and cost of goods sold of $301,800. its gross profit equals:

Elena-2011 [213]

Revenue = $752,800
Cost of goods sold = $301,800

To solve for the gross profit:
Gross profit = revenue - cost of goods sold
Gross profit = $752,800 - $301,800
Gross profit = $451,000

The gross profit shows the profits a company has after taking their costs to make the product and subtract them from the sales they had.

7 0

4 years ago

According to the agency theory,

sammy [17]

Answer: conflicts that arise in corporations should be addressed in the legal realm(A)

Explanation:

The principal-agent problem is an important part of the agency theory, the principal-agent problem views the firm as a connection of legal contracts.

In this perspective, corporations are seen merely as set of legal contracts that exists between the different parties. The conflicts that may take place are to be addressed in the legal realm.

7 0

4 years ago

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