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gavmur [86]
2 years ago
13

Using+a+50/50+debt/equity+mix,+a+1%+reduction+in+which+cost+of+capital+category+would+drive+a+larger+reduction+in+wacc?

Business
1 answer:
Fantom [35]2 years ago
4 0

A larger reduction in wacc equals impact from equity and debt. The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the IRR

WACC SG&A Sales CAGR EPS To make projections while capital budgeting in Excel, you have to make assumptions Although conservative assumptions are safe, they are generally so safe you would not want to make the investment.

It is best for organizations to keep their debt-to-equity ratio at a manageable level, which is generally indicated by a ratio that is below Sustaining a very low ratio would show companies that they may not be taking advantage of the cash they have for investment opportunities the project will break even.

Learn more about Equity here:-brainly.com/question/12781629

#SPJ4

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What is the largest category calculated when using the expenditure approach to calculate GDP?
Leya [2.2K]
When using the expenditure approach, we are looking at the total spending of a business that is included in the equation to compute for GDP. For this, I would say government purchases is the answer because government purchases would take up the biggest chunk of a country's revenue for development and imports.  
4 0
3 years ago
In Draco Corporation’s first year of business, the following transactions affected its equity accounts. Issued 6,800 shares of $
BigorU [14]

Answer:

$428,780

Explanation:

DRACO CORPORATION

Stockholders' Equity Section of the Balance Sheet as at December 31

Preferred stock- $10 par value

($6,800×$2) $13,600

Paid in capital in excess of par- Preferred stock ($6,800 ×$44) $299,200

($46-$2)

Preferred stock- $10 par value

($1,700×$10) $17,000

Paid in capital in excess of par- Common stock ($1,700×$41) $69,700

($51-$10)

Retained earnings($78,000-$29,000) $49,000

Less: Treasury stock($340×$58) ($19,720)

Total stockholders' equity $428,780

($448,500-$19,720)

4 0
3 years ago
Maxdime Inc. is an international automobile manufacturer that has decided to work on low-cost fuel efficient motorbikes. Foray I
luda_lava [24]

Answer:

The correct answer is B

Explanation:

Non-equity strategic alliance is the kind or type of the alliance which is established when two or more companies sign or agree a relationship which is contractual to the pool of their resources as well as capabilities together.

So, in this case, the automobile manufacturer, who decided to work on the low cost fuel, then the domestic automobile company which is grounded in China, willing to partner with the automobile manufacturer. It is an alliance which is non- equity strategy as they pool their capabilities and the resources.

5 0
3 years ago
Antitrust regulations would most likely require one of the following in order to determine whether or not a merger may enhance c
Crank

Answer: analysis using numerical tools

Explanation:

The main reason for the creation of Antitrust laws was to give power to the government to block some particular mergers and also break up the large firms to smaller ones.

Antitrust regulations would most likely require analysis using numerical tools in order to determine whether or not a merger may enhance competition.

8 0
3 years ago
Service cost is: Multiple Choice Calculated by multiplying the beginning balance in plan assets by the expected rate of return.
Sloan [31]

Answer: Equal to the increase in the projected benefit obligation resulting from benefits earned by employees in the current period

Explanation:

Service cost is equal to the increase in the projected benefit obligation resulting from benefits earned by employees in the current period.

Service cost is the amount of money that is out aside by an employer every year in order to cover for the pension of the workers when they retire. It is the expense when someone else does a task for an economic entity.

4 0
3 years ago
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