The equity multiplier is obtained by adding one to the debt ratio.
Therefore, the equity multiplier of XYZ inc is given by 1 + 0.62 = 1.62
Answer:
a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
Explanation:
a.
The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.
b.
When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.
c.
The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.
d.
Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.
There are video tutorials online. It might be a lot easier to understand it if you see it, rather than read it. Hope this helps! :)
Requesting an interview during a telephone call to the employer.
It is true that the shared value creation framework aims to reconcile the concept of gaining and sustaining a competitive advantage with corporate social responsibility.
<h3>What is corporate governance?</h3>
This refers to a formal system of oversight, accountability, and control for organizational decisions and resources.
It is the set of processes and tools which controls the operations of an organization.
Learn more about corporate governance here :
brainly.com/question/13503182
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