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Vedmedyk [2.9K]
3 years ago
5

Which of these makes this a true statement? When determining the appropriate weights used in calculating a WACC, it should refle

ct:
A.) The relative sizes of the total book capitalizations for each kind of security that the firm issues.
B.) The relative sizes of the total market capitalizations for each kind of security that the firm issues.
C.) Only the market after-tax cost of debt.
D.) Only the market after-tax cost of equity
Business
1 answer:
rjkz [21]3 years ago
3 0

Answer:

B.) The relative sizes of the total market capitalizations for each kind of security that the firm issues.

Explanation:

WACC is the weighted average cost of capital. It is used as the discount rate when evaluate projects whose risk are similar to company's risk. Calculation of WACC uses relative market values of common equity, preferred stock and debt to calculate each proportion.  Cost of equity, cost of preferred stock and aftertax cost of debt are also used. This makes choice B correct.

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A metal fabricator produces connecting rods with an outer diameter that has a 1 ± .01 inch specification. A machine operator tak
Morgarella [4.7K]

Answer:

A) 1.111

B) 0.889

Explanation:

given data :

outer diameter of connecting rods = 1 ± 0.01 inch

sample mean outer diameter = 1.002 inches

standard deviation = 0.003 inches

A) Calculating the Cp of the process

mean = 1.002

Standard deviation = 0.003

LSL = 1 - 0.01 = 0.99

USL = 1 + 0.01 = 1.01

Cp = \frac{USL - LSL}{6 * STANDARD DEVIATION} =  \frac{1.01-0.99}{6*0.003} = 1.111

B) calculate Cpk

mean = 1.002, LSL = 0.99, USL = 1.01 , deviation = 0.003

Cpk = min[\frac{mean-LSL}{3* deviation} , \frac{USL- mean}{3*deviation} ]

       = min [(0.012/0.009) , (0.008/0.009) ]

       = min [ 1.333, 0.889 ]

hence Cpk = 0.889

3 0
3 years ago
Nessca corp. manufactures electronic gadgets. it instructs its marketing team to competitively advertise and promote its gadgets
Natasha2012 [34]

I guess the correct answer is be inward looking, focusing on selling what the firm makes.

Nessca Corp. manufactures electronic gadgets. It instructs its marketing team to competitively advertise and promote its gadgets. The company, instead of believing in market research, believes that the market will absorb more products if customers are made aware of the products. The workforce of Nessca Corp. is most likely to be inward looking, focusing on selling what the firm makes.

4 0
3 years ago
Read 2 more answers
The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting r
Alexus [3.1K]

Answer:

False

Explanation:

The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting records on the cash basis.

This is False because cash flows are also made for businesses that accounting records on the accrual basis rather than cash basis.

The cash flow is computed both by Direct and Indirect methods.

In indirect method of Cash flow Net income is computed using accrual income which recognizes revenues when earned and expenses when incurred.

5 0
3 years ago
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if Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain Coffee from Jamaica Germany has a
sukhopar [10]
Neither a favorable nor an unfavorable balance of trade with Jamaica.


5 0
2 years ago
Which of the following statements is most true of order-getting salespeople?
melisa1 [442]

Answer:they seek out possible buyers and sue an organized creative approach to present messages

Explanation:

3 0
3 years ago
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