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Tema [17]
3 years ago
13

The value of a firm is maximized when the: Multiple Choice

Business
1 answer:
dsp733 years ago
4 0

Answer:

weighted average cost of capital is minimized

Explanation:

Weighted average cost of capital (WACC) in accounting is the average rate of return a company is expected to compensate all its various investors by comparing its debt and equity structure.

The value of a firm is maximized when the weighted average cost of capital is minimized.

The formula to calculate the weighted average cost of capital (WACC) is:

WACC = ((E ÷ V) x Re) + (((D ÷ V) x Rd) x (1 - T))

Where;

Re=Cost of equity

Rd=Cost of debt

E=Market value of equity

D=Market value of debt

T=Effective tax rate

V=Total market value of combined equity and debt

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Answer:

TRUE

Explanation:

Take-home pay is the gross pay minus all deductions. Deductions include statutory and voluntary deductions. Take home is the money that gets to the employee's bank account.

In most households saving and investment are done after meeting the basic expenses. In other words, people will save or invest after meeting their basic needs. Therefore, take home minus total expenses necessary for life is saving and investment

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2 years ago
Since your first birthday, your grandparents have been depositing $140 into a savings account every month. The account pays 12%
guajiro [1.7K]

Answer:

The correct answer is: $5,140.80.

Explanation:

Simple Interest is a quick method of calculating the interest charged on a loan or the interest accrued out of an investment. It is determined by multiplying the interest rate by the principal by the number of periods. It is one of the most common methods used in finance to calculate the return on certain investments.

In the example, the number of years considered to calculate the interest is 17 because the 18th year on interest is realized by the end of that year. Thus:  

  • Deposit per year: $140
  • Interest per year: $140 x 12% = $16.80
  • Interest accrued: $16,8 x 17 = $285.60

  • Total savings: (Deposit per year x number of years) + interest accrued
  • Total savings: ($140 x 18) + $285.60
  • Total savings: $5,140.80
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3 years ago
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The franchisor generally does NOT provide the franchisee with:
Nonamiya [84]

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c. wholesale prices on supplies

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