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4 years ago

The minimum return that must be earned on a project in order to leave the firm's value unchanged is ________.

1 answer:

3 0

<span>The minimum return that must be earned on a project in order to leave the firm's value unchanged is: cost of capital.
This minimum return will be used for the firm to continue its previous operation without making any changes such as cutting out their employees or selling some of its assets</span>

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Which of the following investment plans best reflects diversification?

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Kenya invests in stocks, bonds, and mutual funds.

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3 years ago

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If you are holding a premium bond, you must expect a _______ each year until maturity. If you are holding a discount bond, you m

prisoha [69]

Answer:

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Explanation:

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2 years ago

Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of di

Gnom [1K]

Answer:

<u>December 31, 2018</u>

Debit : Dividend $40,000

Credit : Shareholders for dividends $40,000

Explanation:

When dividends are declared, we Debit an Equity Element - Dividend and Credit the Liability - Shareholders for dividends.

Calculation of this dividend is made on the stockholders in existence at the on a stated date (January 15 in this case) and at par value ($2) as follows :

Dividend = 100,000 x $2.00 x $0.20 = $40,000

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3 years ago

Classify each of the statements as true or false.

Tasya [4]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

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3 years ago

Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,600,000, with an addit

Lorico [155]

Answer:

These are the missing multiple choices:

a. $3,780,000, b. $4,212,000, c. $720,000

The correct option is A,$3,780,000

Explanation:

The total cost of Martson's new equipment comprises of the invoice price of the equipment of $3,600,000 plus the cost of installation and shipping costs of $180,000.

The rationale for the shipping and installation is that costs of asset should include costs incurred in bringing the asset to its present location and condition such as installation and shipping costs.

The costs of the assets is $3,780,000($3,600,000+$180,000)

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3 years ago