Ask question

Ask question

All categories

3 years ago

15

The correctly calculated weighted average cost of capital for a firm can be used to discount the cash flows for any new project

true or false

1 answer:

mina [271]3 years ago

4 0

I can't help you unless you give me more Information

You might be interested in

Jim has an annual income of $180,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowners i

MariettaO [177]

Answer:

$787,471.02

Explanation:

Given:

Jim's annual income = $180,000

Monthly property taxes = $140

Monthly homeowners insurance = $70

Monthly student loan payments = $178

Maximum front end DTI limit = 28%

Maximum back end DTI limit = 36%

Amortizing period = 30 years = 360 months

annual rate = 4.5% compounded monthly

Now,

Monthly salary = $\frac{\textup{Annual income}}{\textup{12 months}}$

or

Monthly salary = $\frac{\textup{180,000}}{\textup{12 months}}$

or

Monthly salary = $15,000

Maximum front end DTI limit

= (Maximum Monthly loan payment + monthly property taxes + monthly homeowner's insurance) ÷ Monthly income

0.28 × $15,000 = Maximum Monthly loan payment + $140 + $70

Maximum Monthly loan payment = $4,200 - $140 - $70

= $3,990

and,

Maximum back end DTI limit =

or

0.36 × $15,000 = Maximum Monthly loan payment + $140 + $70 + $178

or

Maximum Monthly loan payment = $5,400 - $140 - $70 - $178

= $5,012

Now,

The monthly payment = minimum of [ $3990, $5012 ]

therefore,

The monthly payment = $3,990

Thus,

The maximum amount of loan = Monthly payment × $[\frac{(1-(1+\frac{r}{k})^{-kn})}{(\frac{r}{k})}]$

here,

k = 12 when compounded monthly

n = 30 years

r = 4.5% = 0.045

The maximum amount of loan = $3,990 × $[\frac{(1-(1+\frac{0.045}{12})^{-12\times30})}{(\frac{0.045}{12})}]$

or

The maximum amount of loan = $787,471.02

8 0

3 years ago

Language that outlines acceptable and unacceptable use of it resources and defines sanctions to be applied if a violation occurs

SashulF [63]

Language that outlines acceptable and unacceptable use of it resources and defines sanctions to be applied if a violation occurs is typically found in an employee code of conduct. Typically, when a person gets hired on at a new job, the new job will give them an employee code of conduct book that states what is and isn't allowed. The code will state what an employee does that will be deemed acceptable and what they can do to make sure they stay in the outlined rules.

3 0

3 years ago

Mark Company’s balance sheet reported total assets of $754,000, which include: cash, $48,000; accounts receivable, $130,000; lan

muminat

Answer:

d) 1.32

Explanation:

The quick ratio uses only the most liquid current assets.

$quick \: ratio = \frac{cash \:and \:cash \:equivalent}{current \:liabilities}$

cash 48,000

AR 130,000

Short Term receivable 150,000

<em>Total 328,000</em>

<em><u>Important:</u></em> Sometimes it is enought by subtracting inventory from current assets

Current liabilities

account payable 230,000

short-term notes payable 10,000

unearned revenue 8,000

<em>Total 248,000</em>

<em>Quick Ratio</em>

$\frac{328,000}{248,000} = 1.322580645 = 1.32$

3 0

3 years ago

Do you think it is best to keep track of finances using a check register, a bank statement, or both? Why?

aalyn [17]

It is best to keep both a check register and then to reconcile your bank statement with your check register. That means you have recorded everything that has happened.

7 0

3 years ago

Explain the vertical integration options and directions for the following providers: (a) a major academic medical center such as

kvasek [131]

Answer:

(a)<u> Backward vertical integration</u> (b) <u>Forward vertical integration</u> (c) <u>Backward vertical integration</u>

Explanation:

(a) An academic medical center is an example of backward vertical integration. The specialist and faculties from the university will provide treatment to the patients. Such medical centers have tertiary service with several intermediaries.

(b) Here, there is no intermediary between patients and general surgery group. The general surgery group treat patients directly. So here there is a forward vertical integration system.

(c) A manufacturer of durable medical equipment will supply to retailers who in turn supply these to hospitals where the patients will receive service from these equipment. So, it is an example of backward vertical integration.

3 0

3 years ago