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polet [3.4K]
3 years ago
13

In general, firms should use their weighted average cost of capital (WACC) to evaluate capital budgeting projects because most p

rojects are funded with general corporate funds, which come from a variety of sources. However, if the firm plans to use only debt or only equity to fund a particular project, it should use the after-tax cost of that specific type of capital to evaluate that project. a. trueb. false
Business
1 answer:
Elodia [21]3 years ago
8 0

Answer:

b. false

Explanation:

Generally, this statement is incorrect because the company should be viewed as an ongoing company and the use of debt (or equity) to fund a given project will change the capital structure and this factor should determine the cost of capital on all projects on the target capital structure. "Prague Ekt financing "may be used and in particular the status of the project will be considered. It is a very specific situation, however, it" usually "is not.

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China is a highly efficient manager. This implies that she:________ a. minimizes the amount of input resources without compromis
devlian [24]

Answer:

a. Minimizes the amount of input resources without compromising quality.

Explanation:

Efficiency is when productive resources are measured inorder to achieve goal. Task are performed at its best with the least cost and less energy in measuring efficiency

Effectiveness measures goals completeness selected by managers for the organization. It means doing the right thing as expected of the organization.

For China to be efficient, she must minimize the amount of input resources without compromising quality. An efficient manager must perform a task qualitatively with the available resources, least cost and in the best way possible.

8 0
3 years ago
The authorized service center is located in Boston. Because Cookie Creations values serving its customers, it pays the shipping
Alex777 [14]

Answer:

$180

Explanation:

Calculation to determine Cookie Creations’ warranty liability for the shipping costs at December 31, 2020.

Using this formula

Warrant liability=Numbers of mixers sold × Percentage of mixers returned for repair or replacement ×The average cost to ship a mixer

Let plug in the formula

Warrant liability=30 x 10% x $60

Warrant liability=$180

Therefore Cookie Creations’ warranty liability for the shipping costs at December 31, 2020 will be $180

7 0
2 years ago
A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transact
Rus_ich [418]

Answer:

B. Debit cash $27,500 ; Credit common stock $27,500

Explanation:

The journal entry to record the transaction is;

Cash account Dr $27,500

(2,500 shares × $11)

To Common stock account Cr $27,500

Cash is an asset hence debited because it decreases as it was used to pay for bills while common stock is credited because it increases shareholder's equity.

5 0
3 years ago
A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capita
kondaur [170]

Answer: The statement is <u>TRUE.</u>

Financial intermediaries are those people or companies that offer financial services to the investor without the latter having to contact the issuer of the financial instrument.

Its function is that of intermediation between people who save and people who need financing, that is, between buyers and sellers.

4 0
2 years ago
Grouper Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item
zhuklara [117]

Answer:

Normal profit was missing, so I looked for it:

Item   Q        Cost        Cost to    Estimated       Cost                Normal*  

No.                p/ unit     replace   selling price   of Completion  profit

                                                                            and Disposal

1320 1,500   $3.87       $3.63         $5.45           $0.42                $1.38

1333 1,200   $3.27       $2.78         $4.24            $0.61                $0.67

1426 1,100    $5.45       $4.48         $6.05          $0.48                 $0.47

1437 1,300    $4.36       $3.75         $3.87          $0.30                 $0.25

1510 1,000    $2.72       $2.42         $3.93          $0.97                  $1.18

1522 1,200   $3.63       $3.27         $4.60          $0.48                 $0.84

1573 3,300   $2.18        $1.94          $3.03          $0.91                 $0.93

1626 1,300   $5.69       $6.29          $7.26         $0.61                  $1.56

we have to first determine the ceiling NRV and floor NRV

Item     Cost to    Estimated       Cost                NRV           NRV

No.       replace   selling price   of Completion   ceiling        floor

                                                    and Disposal

1320   $3.63         $5.45             $0.42                 $5.03        $3.65

1333   $2.78         $4.24              $0.61                 $3.63         $2.96

1426   $4.48         $6.05             $0.48                 $5.57         $5.10

1437    $3.75         $3.87             $0.30                 $3.57         $3.32

1510    $2.42         $3.93             $0.97                 $2.96         $1.78

1522   $3.27         $4.60             $0.48                  $4.12         $3.28

1573    $1.94          $3.03             $0.91                  $2.12          $1.19

1626   $6.29          $7.26             $0.61                 $6.65         $5.09

we have to determine the market value:

Item     Cost to    NRV           NRV           Market value

No.       replace   ceiling        floor           (middle of the 3)

1320   $3.63        $5.03        $3.65             $3.63

1333   $2.78         $3.63         $2.96            $2.96

1426   $4.48         $5.57         $5.10            $5.10

1437    $3.75         $3.57         $3.32           $3.57

1510    $2.42         $2.96         $1.78            $2.42

1522   $3.27         $4.12         $3.28            $3.28

1573    $1.94          $2.12          $1.19            $1.94

1626   $6.29         $6.65         $5.09          $6.29

Item     Market value       Cost              Quantity           Inventory

No.                                    per unit                                  value

1320      <u>$3.63</u>                   $3.87           1,500                 $5,445

1333      <u>$2.96</u>                   $3.27           1,200                 $3,552

1426       <u>$5.10</u>                   $5.45           1,100                 $5,610

1437       <u>$3.57</u>                   $4.36           1,300                 $4,641

1510       <u>$2.42</u>                   $2.72           1,000                 $2,420

1522      <u>$3.28</u>                   $3.63           1,200                 $3,939

1573       <u>$1.94</u>                    $2.18           3,300                 $6,402

1626      $6.29                   <u>$5.69</u>           1,300                 $7,397

total                                                                                   $39,406

               

7 0
3 years ago
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