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kirza4 [7]
3 years ago
8

Duval Inc. uses only equity capital, and it has two equally-sized divisions. Division A's cost of capital is 10.0%, Division B's

cost is 14.0%, and the corporate (composite) WACC is 12.0%. All of Division A's projects are equally risky, as are all of Division B's projects. However, the projects of Division A are less risky than those of Division B. Which of the following projects should the firm accept? A Division B project with a 13% return. A Division B project with a 12% return. A Division A project with an 11% return. A Division A project with a 9% return. A Division B project with an 11% return.
Business
1 answer:
saveliy_v [14]3 years ago
4 0

Answer:

A Division A project with an 11%

Explanation:

The project should be analize with the cost of capital for each division, as it is a know values it is a better choise than WACC.

For that reason, going for project of less than 14% (13% or 11%) in division b will be destroying capital

While the project in Division A for 11% means it will generate economic value to the firm as the cost is 10% and return 11%

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Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to __
Triss [41]

Answer:

adopt a new business model                                  

Explanation:

As per the theories of economic, political, linguistic or other ways, a business model defines the justification on how an institution produces, provides, and evokes significance. The business model building and alteration mechanism is also termed as business model advancement and appears to be part of corporate strategy.

Apple computers captured the majority shares by introducing  anew framework where the music lovers could easily lowland heir favorite songs  inline and that too at a very cheap price. However the labeled companies continued to operate in traditional ways through stores and shops.

Therefore, apple today dominates the industry.

6 0
3 years ago
A radio commercial begins with the following line: "Our competitors think we can't sell furniture for so little money, but we wa
svp [43]

Answer:

refutational appeal

Explanation:

A refutational appeal is a kind of message in which there are two sides of the issue, one side of it acknowledges an opposite view and still goes on to disprove of it. It is a good tactics while debating in which one uses to relate ideas and argument of the opposite team to that of another.

4 0
3 years ago
On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs ne
Law Incorporation [45]

Answer:

1. Depletion for 2021 will be derived if the "tons which were extracted and sold immediately" is divided by "the Depletion per ton"

Depletion for 2021 = Extracted and sold tons in 2021 / depletion per ton

Depletion for 2021 = 249,000 tons * $5 per tons

Depletion for 2021 = $1,245,000

Where as the depletion per ton is be derived when the purchase price plus additional costs necessary is divided extract of tons of coals during the 4 year period.

Depletion per ton =  $4,950,000 / 990000  

Depletion per ton =   $5 per ton

2. Depletion is not considered as part of product cost. It is shown as expense on income statement and reduced from the value of natural resource. So it is equivalent to depreciation of assets.

6 0
4 years ago
A bill was introduced into Congress last year suggesting changes to the income tax code. Congress now passed this new tax reform
Orlov [11]

Answer:

Macroeconomic fiscal policy.

Explanation:

Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.

8 0
3 years ago
Why would you want to let your boss know if you are having personal struggles at home?
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The best answer is a
4 0
3 years ago
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