1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
lanier company manufactures expensive watch cases sold as souvenirs. three of itssales departments are retail sales, wh
Nataly [62]

Mary Gammel's responsibility in the firm is to monitor the results of profit center because it is the key driver of the total results of the company.

<h3>What is Mary Gammel position?</h3>

She is a manager in the retail sales department which is a profit center in the firm because it is saddles with role of supervising the team of sales representatives who works with customers.

Hence, Mary Gammel's role is to monitor the results of profit center because it is the key driver of the total results of the company.

Missing words "<em>Mary Gammel is a manager in the Retail Sales Department. Determine what should be included in the responsibility report of the manager</em>"

Read more about retail sales department

<em>brainly.com/question/930797</em>

#SPJ1

3 0
1 year ago
If Ben and the HR managers do nothing about the promotion opportunities in the organization, employee satisfaction is likely to
Andru [333]

Answer:

Employee satisfaction is likely to be lower

Explanation:

Promotion opportunities are an important form of reward inside an organization. If there are no promotion opportunities in place, this means that employee satisfaction will likely be lower, because there one incentive less to work hard: the incentive of being promoted.

3 0
3 years ago
Please help!! URGENT! Question &amp; answers in photo
FinnZ [79.3K]

Answer:

its black? or is it just mine

Explanation:

8 0
3 years ago
Read 2 more answers
Suppose the U.S. yield curve is flat at 3% and the euro yield curve is flat at 5%. The current exchange rate is $1.4 per euro. W
Kruka [31]

Answer: hello your question is incomplete attached below is the complete question.

answer :

3.02 million,    2.96 million,    2.91 million

Explanation:

<u>Determine the swap rate over a 3-year period</u>

swap rate = forward exchange rate * exchange amount

For year 1

1.4 * ( 1 + 0.03 / 1 + 0.05 ) * 2.2 million

= 1.4 ( 0.98095 ) * 2.2

= 3.02 million

For year 2

1.4 * ( 1 + 0.03 / 1 + 0.05 )^2 * 2..2 million

= 1.4 ( 0.98095 )^2 * 2.2 million

= 2.96378 million

For year 3

1.4 * ( 1 + 0.03 / 1 + 0.05 )^3 * 2.2 million

= 1.4 ( 0.98095 )^3 * 2.2 million

= 2.90733 million  

3 0
2 years ago
The overarching purpose of credit risk analysis is to: Question 11 options: a) Identify credit opportunities b) Determine a comp
Kamila [148]

Answer:

d) Quantify potential credit losses

Explanation:

Credit risk is the possibility of a loss happening because of a borrower's failure to payback a loan or meet up with contractual obligations. The overaching purpose of credit risk analysis is the quantification of the level of credit risk that the borrower poses to the lender. The purpose of credit analysis is to determine if borrowers are credit worthy by quantifying the risk of loss that the lender may experience.

Therefore option D is the answer.

6 0
3 years ago
Other questions:
  • A government security issued in minimum units of $1,000 with a 10-year to 30-year maturity is called a_____________.
    15·1 answer
  • Suppose income increases by 25 percent​ and, as a​ result, the quantity of a particular brand of automobile demanded​ (holding t
    5·1 answer
  • Which of the following shows the listed items in their proper order of presentation in a balance sheet?
    9·2 answers
  • The constitutions of most of our States assert, that all power is inherent in the people; that they may exercise it by themselve
    8·2 answers
  • You decided to buy apples at a grocery store somewhere in the mountains. You buy 5 pounds of apples, which are sold for $1.99/lb
    7·1 answer
  • The monetary inflation needed to relieve the social and economic hardships of the late nineteenth century eventually came as a r
    9·1 answer
  • The bookkeeper for Mustang Company forgot to make the end-of-the-period adjustment for the interest expense that had accrued dur
    13·1 answer
  • Production Budget Pasadena Candle Inc. projected sales of 64,000 candles for January. The estimated January 1 inventory is 2,600
    11·1 answer
  • Who wants to watch lgbtq videos? for all my lgbtq ppl
    9·2 answers
  • A bond that has a face value of $150 maturing in one year is available for purchase for $134 . What is the interest rate offered
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!