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docker41 [41]
3 years ago
9

The Anderson Company has equal amounts of low-risk, average-risk, and high-risk projects. The firm's overall WACC is 12%. The CF

O believes that this is the correct WACC for the company's average-risk projects, but that a lower rate should be used for lower-risk projects and a higher rate for higher-risk projects. The CEO disagrees, on the grounds that even though projects have different risks, the WACC used to evaluate each project should be the same because the company obtains capital for all projects from the same sources. If the CEO's position is accepted, what is likely to happen over time
Business
1 answer:
astra-53 [7]3 years ago
8 0

Answer:

e. The company will take on too many high-risk projects and reject too many low-risk projects.

Explanation:

By using the WACC for discounting purposes in case of the higher risk projects the net present value would be greater in such cases and also the high discount rate is applied. It is easily accepted but at the same time it also rise the organization risk

Therefore in the given case, the option e is correct and the same is to be considered

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carlos' firm manufactures custom-made furniture that is sold through various furniture retailers. carlos sources the wood he nee
Papessa [141]

Carlos sources the wood he needs from various lumber manufacturers and uses a distributor to get his products to the retail stores for sale. the suppliers of the wood, the distributor, and the retail stores are all part of a <u>Supply channel</u>

  • Supply chain management, in the context of commerce, is the control of the movement of products and services between establishments. This can involve the transportation and storage of raw materials, inventories for commodities still being produced, finished goods, and the complete fulfillment of orders from the point of production to the point of consumption.
<h3><u>What are the supply lines?</u></h3>
  • When seeking for the finest means to sell their products, a corporation can pick from four primary distribution channels. Direct sales, wholesale, brokerage, and dual distribution are available options. Choose your supply chain distribution partners wisely for best practices.

to learn more about supply chain, Click the links.

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8 0
2 years ago
34s left The National Income Accounts Unanswered GNP equals GDP A. minus net receipts of factor income from the rest of the worl
ra1l [238]

Answer:

D. plus net receipts of factor income from the rest of the world

Explanation:

Gross national product (GNP) is the value of all final goods and services produced by a country's residents both at home and abroad.

GNP = Consumption + Investment + Government + Net Export + Net factor income from abroad

6 0
3 years ago
Feel great. smell great," goes the warm, lilting theme song of a television ad for perfume, as the model dances through a field
ira [324]

The likely reason as to why this ad is most likely to work is because of emotional appeals by which they are likely to work well with the social identity products that could be describe and read from the scenario above.

6 0
3 years ago
Use the Internet to research different outside financing sources available to entrepreneurs. You will need to have at least thre
Scrat [10]

Answer:

Three sources of financing to a business includes;

1) Angels (National Angel Capital Organization, NACO)

Wealthy and experienced retired industry leaders, that invest in startups, require transparency, and take charge of the supervision of the business management practices

2) Business Accelerator or Incubators (MaRS; MaRS Discovery District)

An incubator provide enabling environment and resources for startups to develop ideas before going into production

3) Bank Loans (Business Development Bank of Canada, BDC)

Bank provide loans to startup with a good idea and an accompanying excellent business plan, and personal guarantee

Explanation:

8 0
3 years ago
how does money solve the problem of double coincidence of wants? explain with an example of your own.​
slega [8]

Answer:

Money is a medium of exchange and satisfaction of needs.

Explanation:

for instance:- if you want to eat ice cream ( which is your want). You give money to shopkeeper who sell money ( his want is money). You give him money in exchange of ice cream . In this way , double wants are satisfied.

4 0
3 years ago
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