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
IRISSAK [1]
3 years ago
15

Which of the three limitations of the Payback Rule can be overcome with a modification to it? Gives equal weight to all cash flo

ws arriving before the cutoff period Does not consider cash flows after the payback period Biases the firm against long-term projects in favor of short-term ones
Business
2 answers:
gogolik [260]3 years ago
7 0

Answer:

Gives equal weight to all cash flows arriving before the cutoff 

Explanation:

The payback period measures how long it takes for the amount invested in a project to be recovered from a project.

A project with a shorter pay back period is favoured over projects with longer payback periods.

The payback period gives equal weights to all cash flows before arriving at a cut Off. The discounted payback period remedies this by discounting cash flows.

I hope my answer helps you

kari74 [83]3 years ago
4 0

Answer:

Gives equal weight to all cash flows arriving before the cutoff period

Explanation:

The discounted payback gives equal weight to all cash flows arriving before the cut off period because it takes into account the time value of money by discounting the cashflows.

The discounted payback period is a capital budgeting method used to determine the level of profitability of a project by discounting its cashflows in order to get their present values.

The discounted payback period gives the actual number of years it takes to return the initial capital outlay, by discounting future cash flows and recognizing the time value of money.

You might be interested in
Which of the following is considered an advantage of home ownership?
Elena L [17]
D. Interest paid on the mortgage of your home is tax deductible
4 0
3 years ago
Read 2 more answers
A stock is expected to maintain a constant dividend growth rate of 4.3 percent indefinitely. if the stock has a dividend yield o
Thepotemich [5.8K]

The required return on the stock is 9.9%.

Stock:

  • A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called "shares" which entitles the owner to a proportion of the corporation's assets and profits equal to how much stock they own.
  • Stocks represent ownership in a publicly traded company. You take a stake in a firm when you purchase its shares. For example, if a company has 100,000 shares, and you buy 1,000 of them, you own 1% of the company.
  • Stocks are not actual assets; they are financial assets. Paper assets that are easily convertible to cash are referred to as financial assets. Real assets have inherent worth because they are tangible.
  • The required return on the stock=dividend yield + Growth rate
  • which is equal to' =(4.3+5.6)
  • =9.9%

Learn more about Stock here brainly.com/question/1193187

#SPJ4

7 0
1 year ago
You believe that the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid
yuradex [85]

Answer:

$16.67

Explanation:

Data provided in the question;

Dividend to be paid next year, D1 = $2

Expected growth rate of dividend, g = 4% = 0.04

Required rate of return on the investment = 16% = 0.16

Now,

Price to be paid for the stock = \frac{D1}{\textup{(r-g)}}

or

Price to be paid for the stock = \frac{\$2}{\textup{(0.16-0.04)}}

or

Price to be paid for the stock = $16.67

8 0
3 years ago
Mr . venter is always late for work and takes long brakes it that unproffesional or unethical?
VLD [36.1K]
That's unprofessional. Unethical would be if he was a doctor and was sharing private information about his patients or decided not to treat them even though he's a doctor.
4 0
3 years ago
True or false? the major advantage of a mass market strategy is recognizing people's differences in shopping patterns.
Dmitriy789 [7]
The answer is false.
It is not the major advantage of a mass market strategy that recognizing people's differences in shopping pattern, instead of advantage it is in the limitations of mass marketing strategy.
A market strategy in which a firm have the authority to ignore the market segment differences and with this a firm can also appeal with one strategy or offer to the whole market, is known as mass marketing strategy.

3 0
3 years ago
Other questions:
  • Gnomes R Us just paid a dividend of $1.90 per share. The company has a dividend payout ratio of 25 percent. If the PE ratio is 1
    8·1 answer
  • The marginal benefit of an additional beach towel is $12. The marginal cost of producing an additional beach towel is $8. If pro
    13·1 answer
  • Congress must vote whether to increase the government budget so as not to shut down the government this year The vote passed and
    5·1 answer
  • Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their ope
    14·1 answer
  • A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production
    7·1 answer
  • Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discou
    5·1 answer
  • Why would you use a chart AND data in Excel?
    8·1 answer
  • Using the variable cost method, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following
    5·1 answer
  • Select the education or qualification best demonstrated in each example.
    5·1 answer
  • 8.1. In the article the author confirms that a reduction of the budget deficit is imperative. Briefly discuss the possible metho
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!