Answer:
B. Reject
B. Division H's project should be rejected, because its return is less than the risk-based cost of capital for the division.
Explanation:
As we can see that the project H Weighted average cost of capital is 14% and the expected rate of return is 12%
So based on this its expected rate of return is less than the cost of capital i.e Weighted average cost of capital
Therefore, the project should be rejected as we compared the Weighted average cost of capital and the expected rate of return
I'd say True because when planning you have to be organized about it
A Gantt chart is s special type of bar chart
Answer:
The forecast of growth is 9%
Explanation:
The dividend discount model is used to discount future dividends at the cost of equity to find the Value of the stock and is appropriate to use in this instance
SP = D1/r - g
What we have D1 $4, SP $80, r 14% we need to find the forecast of growth
Plug in the values in the formula
80 = 4/ 0.14 - g
80(0.14-g) = 4
80(0.14-g)/80 = 4/80
0.14 - g = 4/80
-g = 4/80 - 0.14 = -0.09
g = 0.09/9%
