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3 years ago

The business risk of a firm:

Business

1 answer:

AURORKA [14]3 years ago

8 0

Answer:

Option D is correct one.

The business risk of a firm: <u>has a positive relationship with the cost of equity for that firm.</u>

Explanation:

Business risk methods a possibility of causing misfortunes or less benefit than anticipated.

The expense of value is the arrival an organization requires to choose if a venture meets capital bring prerequisites back. An association's expense of value speaks to the remuneration the market requests in return for claiming the advantage and bearing the danger of proprietorship.

An organization's all out expense of capital incorporates obligation and value finances that are required to pay enthusiasm on obligation subsidizing and the profits on value subsidizing. The expense of value financing is dictated by evaluating the normal rate of return that could be normal dependent on returns produced by the more extensive market. In this manner, since advertise hazard legitimately influences the expense of value financing, it additionally straightforwardly influences the absolute expense of capital.

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A five-year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It

riadik2000 [5.3K]

The value of Net present value is $12,895.45.

Given that

initial investment = $50,000

1st-year cash flow = $15,000

2nd-year cash flow =$ 25,000

3rd-year cash flow =$ 30,000

4th-year cash flow = $20,000

5th-year cash flow = $15,000

rate = 20%

using formula

$NPV = \frac{R}{({1+i})^t}$

$NPV = \frac{15000}{({1+0.20})^5}\\NPV = 12895.45$

<h3>What is Net Present value?</h3>

The current value of a future stream of payments from a business, project, or investment is determined using net present value, or NPV.
You must predict the timing and size of future cash flows in order to determine NPV, and you must choose a discount rate that is equal to the least allowable rate of return.
Your cost of capital or the rewards offered by substitute investments with comparable risk may be reflected in the discount rate.
Positive NPV indicates that the rate of return on a project or investment will be higher than the discount rate.
to learn more about Net present value with the given link

brainly.com/question/14293955

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4 0

2 years ago

Methods used to protect consumers

Gala2k [10]

Answer:

Governments of different countries protect the interests of the consumers through the mechanism created by three types of legal provision. These are direct consumer protection laws, anti trust laws or the laws to curb monopolistic practices, and laws to govern management of corporations including trading exchanges.

3 0

3 years ago

Read 2 more answers

One of the factors that accelerated the development of the internet during the 1990s was:

Margarita [4]

<span>the invention of graphical Web browsing.</span>

5 0

3 years ago

Philippe Organic Farms has total assets of $689,400, long-term debt of $198,375, total equity of $364.182, net fixed assets of $

solniwko [45]

Answer:

Current ratio= 1.3977

Explanation:

Current Ratio:

It is the measure of company ability to pay short term debits of one year. It also tells how company can increase its current assets.

Given:

Total assets=$689,400

Long-term debt=$198,375

Total equity= $364,182

Net fixed assets =$512,100

Sales = $1,021,500

Formula For current Ratio:

Current Ratio= $\frac{Total\ Assets-Net\ Fixed\ Assets}{Total\ Assets- long_term\ debt-total\ equity}$

$Current\ Ratio=\frac{\$689,400-\$512,000}{\$689,400-\$364,182-\$198,375}\\ Current\ Ratio=1.3977$

4 0

3 years ago

The Fed announced in September 2013 that it would postpone winding down its monetary stimulus until the economic recovery was st

kolezko [41]

Answer:

A) interest rates will rise.

Explanation:

When the FED buys US securities it is carrying out an expansionary monetary policy. It reduces the interest rate of US securities so that more investors are willing to sell their US securities to the FED since their rate of return is very small.

If the FED stops buying back US securities, it means that they will stop their expansionary monetary policy, so the FED will start to increase US securities' interest rates. That way investors will be willing to keep their US securities and will not sell them since their rate of return has increased. This increase in the interest rate will lower the price of US securities and decrease the money supply.

3 0

3 years ago