Answer:
If your options are cow , factory , employee , tractor... Then it will be COW
Explanation:
Answer:
D. 2/3
Explanation:
The Debt to total value ratio is found by dividing the total debt by total equity plus total debt. It is written as
D/(D+E)
In this question we are already given the debt to equity ratio which is 2, this means that the debt is twice the amount of equity. We can use this ratio to find the debt to total value ratio. If we take debt as 2, then equity will be half its amount which is 1. So now we can calculate the Debt to total Value ratio.
D=2
D+E= 3
Debt to total value ration = 2/3
Answer:
The Company should undertake project A.
Explanation:
The finance of projects is usually done through pooling of funds, that is using <em>various sources</em> of finance. The WACC represents the return required by providers of this finance and also shows the risk of the company.
A company will always<em> accept projects</em> that provide a return higher that their weighted average cost of capital (risk) and r<em>eject any project</em> offering a return below the WACC.
Conclusion :
The Company should undertake project A as this gives a return higher than the WACC of 8.5%.