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kirill115 [55]
11 months ago
12

He wacc is the appropriate discount rate for use with ______ projects but should be adjusted ______ for higher risk ones

Business
1 answer:
gregori [183]11 months ago
8 0

The WACC is the appropriate discount rate for use with average projects but should be adjusted upward for higher-risk ones.

Securities analysts may use WACC when evaluating the value of investment opportunities. For example, in discounted cash flow analysis, as a discount rate for future cash flows, he can apply WACC to derive the net present value of the firm.

Using the WACC discount rate makes the present value of investment appear higher than it actually is.

Businesses typically use the weighted average cost of capital (WACC) as the discount rate. This is to take into account the rate of return expected by shareholders. DCF has limitations. Primarily, it relies on estimates of future cash flows that may be inaccurate.

Learn more about WACC at

brainly.com/question/25566972

#SPJ4

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Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1)
solniwko [45]

Answer:

The Yowell's net cash flow from operating activities is $14,500

Explanation:

In the direct method, the operating activities record revenues and expenses which are earned and incurred during a particular year.

The computation of the net cash flow from operating activities is shown below:

= Consulting services revenue - rent expense - employees' salaries expense

= $64,000 - $15,500 - $34,000

= $14,500

The other items which are mentioned in the question are related to the investing and the financing activities. So, these items would not be considered in the computation part.

5 0
2 years ago
One item is omitted in each of the following summaries of balance sheet and income statement data for the following four differe
VARVARA [1.3K]

Answer:

                                                        Carbon      Krypton    Fluorine    Radium

Beginning of the year:

Assets                                         $333,000  $250,000 $100,000 $268,000

Liabilities                                         118,000     130,000     76,000    120,000

Equity at the beginning             $215,000   $120,000  $24,000 $148,000

End of the year:Assets                495,000     350,000    90,000   248,000

Liabilities                                       160,000      110,000     80,000    136,000

Equity at the end of the year   $335,000  $240,000   $10,000  $112,000

During the year:

Additional capital stock                76,500      50,000      10,000       40,000

Dividends                                        7,500       16,000      16,500       60,000

Revenue                                       90,000    150,000     115,000       112,000

Expenses                                      39,000      64,000    122,500      128,000

Net income                                 $51,000   $86,000    ($7,500)    ($16,000)

Explanation:

a) Data and Calculations:

                                                        Carbon      Krypton    Fluorine    Radium

Beginning of the year:

Assets                                         $333,000  $250,000 $100,000 $268,000

Liabilities                                         118,000     130,000     76,000    120,000

Equity at the beginning             $215,000   $120,000  $24,000 $148,000

End of the year:Assets                495,000     350,000    90,000   248,000

Liabilities                                       160,000      110,000     80,000    136,000

Equity at the end of the year   $335,000  $240,000   $10,000  $112,000

During the year:

Additional capital stock                 76,500      50,000     10,000      40,000

Dividends                                         7,500       16,000     16,500      60,000

Revenue                                        90,000    150,000    115,000      112,000

Expenses                                      39,000      64,000   122,500     128,000

Net income                                 $51,000    $86,000   ($7,500)  ($16,000)

Formulas for finding the missing items:

1. Equity at the end = Equity at the beginning + Additional capital + Net Income - Dividends

2. Net Income = Revenue - Expenses

3. Equity = Assets - Liabilities

7 0
3 years ago
Describe a presentation or a briefing you have conducted recently. how did you adapt it to your public? how did your auditors re
Lemur [1.5K]

Recently I conducted a presentation to an audience composed mostly of teenager about the importance of team work. It took place at the American Corner of the State Library. It comprised of about 50 teenagers from various states.

<h3>How did you adapt it to your public?</h3>

Because they were teenagers, I used words that were more suited to their generation.

Because it was a pseudo (or semi) formal presentation, I was free to use words such as;

  • Do.pe - cool or awesome
  • Gucci - Good, cool, or going well.
  • Lit - amazing

<h3>How did your auditors react? what did you get out of it?</h3>

The auditors were well informed about what I was doing so they welcomed it a a good idea.

The objective was to  be able to communicate to them in a way that showed that the presenter understood them.

This helped the presenter to connect as well as communicate effectively.

Learn more bout presentation at;
brainly.com/question/24653274
#SPJ1

3 0
1 year ago
The broad goal of __________ is to identify and define both marketing problems and opportunities and to generate and improve mar
amid [387]

Answer:

D. Marketing research

8 0
3 years ago
Which one of the following statements is correct?
Marianna [84]

Answer:

b. Income from both sole proprietorship and partnerships is taxed as individual income.

Explanation:

According to the following statements, the correct option is b. as income from both sole proprietorship and partnerships is taxed as individual income as there is no specific tax rates or separate tax rate so, in this forms of business organization, the income that is generated should be filed in their individual tax return

Hence, all other given statements are wrong as a general partnership is totally different from the corporation plus partnership is not the most complicated form of business. Neither all business organizations have by-laws nor the sole proprietorship has limited lives but the partnership has also limited lives.

3 0
3 years ago
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