Answer:
The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.
Explanation:
Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).
As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.
On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.
Answer:
Following is the solution for the given problem.
Explanation:
Best order size, EOQ =√2DS/H
EOQ = √2*4700*60/5
EOQ = 336 units.
D = 4700/300 = 15.66.
σ L= √∑σ²
= √3*(5)² = 8.66.
Reorder point, R = D*L+ z σ L
Reorder point, R = 15.66*3 + 1.282*8.66
Reorder point, R = 58 units.
Answer: From the given comprehension if the following statement is true, will most seriously weakens the argument: <u><em>Among the entrepreneurs surveyed, those who did not produce formal business plans sought and received a much larger proportion of their capital from investors with whom they had a long-standing business relationship.</em></u>
<em>Here it states that, entrepreneurs who were capable of raising funds without thought/design were able to make the capital because of their relation with investors.</em>
<u><em>Therefore, the correct option here is (c).</em></u>
Answer:
b. we should get an accurate picture of how all consumer goods and services prices changed from year to year.
Explanation:
Wether it is ased on a fixed goods of goods or based on a changing goods of goods that gets old after time, we should check how is it work with this policy
The goal for the index is to adjust the value of assets by the inflation rate to calcualte the loss for having dollar bills.
Answer:
a. $1,765,000
Explanation:
Total stockholder’s equity on December 31, 2013 = Total equity at end 2012 – amount paid for 3,000 shares were reacquired at $28 per share – amount paid for 3,000 shares were reacquired at $35 per share + amount collect from 1,800 shares of treasury stock were sold at $30 per share + net income of $450,000
= $1,450,000 – 3,000 * $28 – 3,000 * $35 + 1,8000 *$30 + $450,000 = $1,765,000
