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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

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Financial markets make the process of borrowing large amounts of money easier because they simplify the negotiation process betw

Mekhanik [1.2K]

Answer:

Reducing risk

Explanation:

The two ways by which risk can be managed are;

✓ Risk avoidance

✓ risk reduction

risk reduction are activities needed to bring about lower likelihood of risk as well as severity of loss. We can reduce risk through reduction of allocation of our resources to risky situation. An example of reducing risk is in the instance of Financial markets that are making the process of borrowing large amounts of money easier because they simplify the negotiation process between borrowers and lenders.

3 0

2 years ago

Paulson Company began the year with retained earnings of $500,000. During the year, the company issued $720,000 of common stock,

Murljashka [212]

Answer:

Revenue for the period = $2,100,000

Explanation:

Provided information,

Opening balance of retained earnings = $500,000

Expenses recorded for the period = $2,000,000

Dividends paid during the period = $80,000

Closing balance of retained earnings = $520,000

Therefore increase in retained earnings = $520,000 - $500,000 = $20,000

Earnings for the period - Expenses for the period - Dividend for the period = $20,000

Now, putting values in above,

Earnings - $2,000,000 - $80,000 = $20,000

Earnings = $20,000 + $80,000 + $2,000,000 = $2,100,000

Revenue for the period = $2,100,000

6 0

3 years ago

Madison wants to open a restaurant and plans to employ a staff of about 10 people, including wait staff and cooks. what type of

Arada [10]

The fact that Madison wants to open a restaurant and plans to employ a staff of about 10 people, including wait staff and cooks means that Madison is planning to create a flat type of organization. The units and positions within the flat organization are flat distributed, which means there are <span>few or no levels of middle management between staff and executives.</span>

8 0

3 years ago

Even an economically sound economy will have problems managing risk and with solving investment issues. As these are resolved, i

Snezhnost [94]

Answer:

liquidity in the market

Explanation:

In business, market liquidity can be regarded as the trade off that exist between the price one want to sell an asset and how it can be sold out on time. It is a feature in which a particular firm as well as individuals can sell out any asset without serious change in the price of the asset. It should be noted that Even an economically sound economy will have problems managing risk and with solving investment issues. As these are resolved, it is most crucial to maintain Liquidity in the market

4 0

3 years ago

The board of directors of Testa Incorporated has decided that they would like to declare a $400,000 cash dividend at some point

Elden [556K]

Answer:

Approval and the declaration by the board of directors

Explanation:

The three key requirement for a company to pay dividends are adequate retained earnings , adequate cash and the declaration and approval of the board of directors.

Looking at the provided information for Tesla incorporation ,what is missing is the Approval of the board through declaration of payment.

It was still an intention , so the declaration is still necessary for payment. Other conditions like adequate cash balance and retained earning are are already met

3 0

3 years ago