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1 year ago

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

1 answer:

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

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2 years ago

Read 2 more answers

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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

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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

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2 years ago

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Answer:

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Answer:

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Explanation:

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