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wel
1 year ago
7

Financial managers increase value by accepting all investment projects that earn _____ the opportunity cost of capital.

Business
1 answer:
koban [17]1 year ago
8 0

Financial managers increase value by accepting all investment projects that earn more than the opportunity cost of capital.

What is the opportunity cost of capital?

The opportunity cost of capital is the  rate of return that could be earned from an alternative investment opportunity if the funds are released for other investment projects.

For an investment project to be acceptable and value-creating its rate of return should be more than the cost of capital, which is the cost of funding or financing the project.

Find out more about opportunity cost of capital on:brainly.com/question/23631000

#SPJ1

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What was the main reason that Carnegie invested in the Frick Coke Company? He wanted to make sure he could always get fuel for h
Nikolay [14]

I believe the answer is: He wanted to make sure he could always get fuel for his steel plant.

At that time, the Frick Coke company was the largest coal producer in the country and they control about 80% of the coal market share. At that time, coal is the most important fuel resources for steel industries, they are used to melt and shapes the steel products.

4 0
2 years ago
Read 2 more answers
Special Plc has an issued share capital at 1 January 2019 of 1,000,000 ordinary shares of 20p each and 50,000 convertible prefer
coldgirl [10]

Answer:

A. £4.15

B.£4

Explanation:

A. Calculation for the diluted EPS for 2019

Using this formula

2019 Diluted EPS =(Earnings after tax for the year ended-Preferred Dividends)/Total Diluted Shares Outstanding

Let plug in the formula

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

2019 Diluted EPS=[(£5,000,000-£125,000)/(£1,000,000+£125,000+£50,000)]

2019 Diluted EPS=£4,875,000/£1,175,000

2019 Diluted EPS=£4.15

Therefore 2019 Diluted EPS (Earning per share) will be £4.15

B. Calculation for the diluted EPS assuming that the convertible preference shares were receiving a dividend of £6 per share instead of £2.50.

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

Diluted EPS=[(£5,000,000-£300,000)/(£1,000,000+£125,000+£50,000)]

Diluted EPS=£4,700,000/£1,175,000

Diluted EPS=£4

Therefore the Diluted EPS (Earning per share) will be £4

6 0
3 years ago
The yield on a taxable money market mutual fund earning 3.0 percent is equivalent to a ____ percent yield on a tax-exempt money
Nezavi [6.7K]
<span>In order to calculate the yield after taxes to compare it to a tax-exempt money market fund we will need to subtract the taxes from the yield. The yield is 0.03 and taxes on that are 0.28. If you multiply those two you get 0.0084. If you subtract this from 0.03 you get 0.0216 which is equal to 2.16%.</span>
7 0
2 years ago
Benny Company budgeted 610 pounds of direct materials costing​ $18.00 per pound to make​ 8,000 units of product. The company act
docker41 [41]

Answer:

-$720 unfavorable

Explanation:

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= Standard Price × (Standard Quantity - Actual Quantity)

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Simply we take the difference between the standard quantity and the actual quantity and then multiply it by the standard price so that the correct value can come

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3 years ago
A coffee company wants a new flavor of cajun coffee. how many pounds of coffee worth 8 a pound should be added to 30 pounds of c
Keith_Richards [23]



Answer:

24 pounds of coffee worth 8 a pound should be added to 30 pounds of coffee worth 5 a pound to get a mixture worth a pound.

Explanation:

5 0
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