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
Lakeland Consulting purchased computer equipment for $10,000. Lakeland made a $2,000 down payment with the balance due within 90
natta225 [31]

Answer:

Increase in assets of $8,000 and an increase in liabilities $8,000

Explanation:

The effect of the transaction is shown below with the help of the accounting equation

Liabilities + Owner equity = Assets

$8,000       + 0                        = $8,000

($10,000 - $2,000)

Therefore from the above calculation,  we can see that there is an increase in assets also there will be an increase in liabilities but no effect on stockholder equity

3 0
3 years ago
What is an information system designed to integrate internal and external members of the supply chain?
djyliett [7]

<u>Answer:</u>

<u><em>(E) Enterprise resource planning </em></u><em> is an information system designed to integrate internal and external members of the supply chain</em>

<em></em>

<u>Explanation:</u>

ERP is a procedure utilized by organizations to oversee and coordinate the significant pieces of their organizations. Numerous ERP programming applications are imperative to organizations since they assist them with actualizing asset arranging by incorporating the entirety of the procedures expected to run their organizations with a solitary framework.

ERP applications likewise enable the various offices to impart and share data all the more effectively with the remainder of the organization. It gathers data about the action and condition of multiple divisions, making this data accessible to different parts, where it tends to be utilized gainfully.

8 0
3 years ago
Job-Order Costing Variables On July 1, Job 46 had a beginning balance of $1,235. During July, prime costs added to the job total
Anika [276]

Answer:

1 $126

2 $140

3 90%

Explanation:

1. Overhead applied = Closing balance of job - (opening balance of job + prime cost added to the job during the month

= $1,921 - ($1,235 + $560)

= $1,921 - $1,795

= $126

2. Direct labor for job 46 for July.

Direct labor = prime cost / ( 3 parts of direct materials + 1 part of direct labor)

Direct labor = $560 / 4

Direct labor = $140

Therefore, direct labor for job 46 for July is $140

Direct materials for job 46 for July

= Direct labor cost × 3(This is due to the fact that prime cost includes 3 parts of direct materials

= $140 × 3

= $420

3. Overhead rate for the company

= [($126 / $140) × 100

= 90%

6 0
3 years ago
Hitzu Co. sold a copier (that costs $4,800) for $6,000 cash with a two-year parts warranty to a customer on August 16 of Year 1.
den301095 [7]

Answer:

warranty expense = $240

estimated warranty liability = $240

Explanation:

There is no option on the customer to take the warranty or not. Therefore this type of warranty is known as an Assurance type warranty.

Assurance type warranties are accounted for terms of IAS 37 - Provisions as follows ;

Year 1

Warranty expense $240 (debit)

Warranty Provision $240 (credit)

<em>Warranty Amount = $6,000 × 4% = $240</em>

Year 2

<em>When warranty claim is subsequently received</em>

Warranty Provision $209 (debit)

Materials $209 (credit)

7 0
3 years ago
What are the advantages and disadvantages for companies maintaining an internal marketing research department? What advantages a
tino4ka555 [31]

Answer:

Explanation:

There is a need for market research for companies, so that the company can be uttered in the right direction

4 0
3 years ago
Other questions:
  • In christopher's speech about his hobby as an amateur potter, he exhibited several pieces of pottery as his presentation aids. w
    11·1 answer
  • Windsor Company took a physical inventory on December 31 and determined that goods costing $191,500 were on hand. Not included i
    7·1 answer
  • Nathan manages a website that sells bicycles. He's using a Google Ads Display campaign to drive purchases in that segment, and c
    11·1 answer
  • BigFoot is a new online shoe retailer that just hit the market. If a customer chooses to shop at BigFoot rather than Zappos, thi
    8·1 answer
  • good theory should have the virtue of , or refutability. In other words, not only must a theory predict thing that we should obs
    5·1 answer
  • Which of the following statements is true of effective business communication? Group of answer choices The communication is most
    9·1 answer
  • You purchased a share of stock for $50. Two years later you received $2 as dividend and sold the share for $59. What was your ho
    8·1 answer
  • The desire for which item(s) would be considered a noneconomic want?
    14·1 answer
  • Which of the following data is used to determine credit scores?
    6·2 answers
  • suppose the real rate is 3.4 percent and the inflation rate is 5 percent. what rate would you expect to see on a treasury bill?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!