If a company's scope is too big then the company will lose its direction and focus.
bonds are basically known as
b)contracts
Answer:
<u>Dingo should reject this project </u>
<u />
Explanation:
sales - operating expenses = controllable margin
controllable margin/operating asset = return on assets
100,000 sales - 86,000 expenses = 14,000
14,000/200,000 = 0.07 = 7%
This project yield 7% which is lower than Ding required rate of return of 9%
Dingo should reject this project of finance it through a lower cost of capital.