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zvonat [6]
3 years ago
7

Which of the following statements is CORRECT? a. The WACC that should be used in capital budgeting is the firm's marginal, after

-tax cost of capital. b. The WACC is calculated using before-tax costs for all components. c. For a given firm, the after-tax cost of debt is always more expensive than the after-tax cost of non-convertible preferred stock. d. The after-tax cost of debt usually exceeds the after-tax cost of equity. e. Retained earnings that were generated in the past and are reported on the firm's balance sheet are available to finance the firm's capital budget during the coming year.
Business
1 answer:
Musya8 [376]3 years ago
3 0

Answer:

A. The WACC that should be used in capital budgeting is the firm's marginal, after-tax cost of capital

Explanation:

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Lisa is wondering if her company is earning the income they expected to earn at the beginning of this year. She looks at to see
andre [41]

Lisa is wondering if her company is earning the income they expected to earn at the beginning of this year. She looks at to see how the money looks, while remembering that this budget does not show cash outlays. This type of budget is called Expense Budget

<h3>What is Expense Budget?</h3>
  • The Expense Budget displays the revenue and capital expenditures of several ministries and departments and provides estimates for each under "Plan" and "Non-Plan."
  • It provides a thorough study of various expenditure kinds as well as a general explanation for why estimates vary. The Expense Budget also includes the Central Government's requests for grants.
  • Capital assets are crucial expenses for firms since they include cash outlays for production machinery and other equipment that generates revenue.
  • Due to the fact that production equipment is more expensive than standard office supplies or monthly expenses, financing is sometimes required to purchase capital assets.
  • The purchase of capital assets is typically included in expense budgets, and their effects on working capital and future cash flows are quantified. Businesses wouldn't be able to accomplish their operational goals without well managed capital investments.

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3 0
2 years ago
The Bennet Family Enters into Legal Enforceable Contracts?​
sveta [45]

Answer:

you need to describe more... then I will answer

4 0
3 years ago
Intro to Investing Math Quiz
olga nikolaevna [1]

As a result of having increased from a price of $55 to $85, we can say that the stock value increased by<u> 54.55%</u>

The stock was valued at $55 then it increased to $85. First thing to do is to check how much it increased by in dollar terms:

<em>= New price - old price </em>

= 85 - 55

= $30

In percentage terms, this is:

<em>= Increase/ Old price x 100%</em>

= 30 / 55 x 100%

= 54.55%

In conclusion, the stock value increased by 54.55%

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<em>Find out more at brainly.com/question/10273187.</em>

4 0
3 years ago
Choose the items below that would be added to the book balance on a bank reconciliation. (Check all that apply.)
Blizzard [7]

Answer:

A. Interest earned on the depositor's account

B. Deposit in transit and Note collected by the bank for the depositor

Explanation:

In Financial accounting, bank reconciliation can be defined as an evaluation which give a complete details of the financial items responsible for any difference between the balance of the cash account in the balance sheet and the cash balance reported in an entity's bank statement. These reconciliations should be done at regular intervals so as to ensure a balanced record of the cash account are kept by an organization or firm.

Adjusted balance ends the bank section of a bank reconciliation. Thus, in the event of any fraudulent behavior by an employee, the bank reconciliation would detect any anomaly or financial fraud in the organization.

In a nutshell, after a reconciliation of the bank statement, the adjusted bank balance should be equal to the company's ending adjusted cash balance on the balance sheet.

The items that would be added to the book balance on a bank reconciliation include the following;

A. Interest earned on the depositor's account.

B. Deposit in transit and Note collected by the bank for the depositor.

3 0
3 years ago
A conservative investor has a portfolio that consists of diversified investments in equity securities, debt securities, and mone
satela [25.4K]

Answer:

Real Estate-Related Investments.

Explanation:

Real estate related investments involves the purchase, management, renting and sale of real estate properties with the aim of making profit.

Real estate investment is capital intensive and has low liquidity compared to other forms of investment.

This will be a good option for the conservative investor because real estate investment is stable and not prone to huge losses that can be incurred in the money markets. Also real estate is not affected by equities market. So will be a safety net in case of failure in the equity market.

4 0
3 years ago
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