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adoni [48]
3 years ago
12

If a typical U.S. company correctly estimates its WACC at a given point in time and then uses that same cost of capital to evalu

ate all projects for the next 10 years, then the firm will most likely a. accept too many low-risk projects and too few high-risk projects. b. become riskier over time, but its intrinsic value will be maximized. c. become less risky over time, and this will maximize its intrinsic value. d. continue as before, because there is no reason to expect its risk position or value to change over time as a result of its use of a single cost of capital. e. become more risky and also have an increasing WACC. Its intrinsic value will not be maximized.
Business
1 answer:
Mice21 [21]3 years ago
7 0

Answer: statement E

Explanation: The correct answer for this case would be "become more risky and also have an increasing WACC . Its intrinsic value will not be maximized. WACC is the cost of capital at a given point in time at average risk of the company. To evaluate different projects for different level of risks we shave to adjust WACC as per the level of risk. Thus same WACC for different level of projects will result in high risk of failure of projects but the real value of company will never increase .

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During 2019, Dowdy, a C corporation, realized a long-term capital gain of $8,000 from the sale of a tract of land, a short-term
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Answer:

The answer to the following question is $4000.

Explanation:

Dowdy which is a C corporation, has a total of $14,000 in capital gain, in which $8000 comes from sale of tract land and rest of $6000 comes from sale of stock. And the company also has a capital loss of $18,000. So here the company is having a long term capital loss of $4000 ( $18,000 - $14,000 ), and this C corporation can deduct this long term capital loss from their taxable income ( the year in which loss was incurred ) . If in a situation, loss is not deducted from this year , then it can be carried 3 years or 2 years or even 1 years back and if there is capital gain , it can be deducted from it.

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3 years ago
If the Trial Balance columns are not equal and the difference can be evenly divided by 9, then the error most likely is a transp
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Answer:Yes

True

Explanation:

A transposition error is a data entry error that is caused by inadvertently switching two adjacent numbers. ... For example, the number 63 is entered as 36, which is a difference of 27. The number 27 is evenly divisible by 9. This can surely cause discrepancies in the trial balance

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Hilton Brews is a company producing instant mixes for all kinds of beverages. It notices that the market for tea has risen due t
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Answer:

Hilton Brews

The organizational growth strategy used by Hilton Brews is:

B. Diversification.

Explanation:

Diversification strategy is the corporate strategy that Hilton Brews has adopted to take advantage of the increased health benefits of teas by introducing a new line of organically grown and processed teas.  Diversification strategy is different from other corporate growth strategies which Hilton Brews could have adopted, including market expansion, market penetration, and product development.

7 0
3 years ago
When a u.s. airplane manufacturer sells its airplanes to business executives in germany without using intermediaries, it is refe
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<span>When a U.S. airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as? Direct exporting. Even though the airplanes were sold without using intermediaries making them a direct export there are still processes that have to be followed within the exchange. A benefit to direct exporting allows the the costs and confusions using a middle man to create, to be irrelevant as there is no middle man just the two companies/countries doing an exchange. </span>
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Southwest Airlines offers vacation packages that include airfare, car rental, and lodging. Southwest is using a(n) ________ pric
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Southwest Airlines offers vacation packages that include airfare, car rental, and lodging. Southwest is using a(n) <u>bundle </u>pricing strategy.

What is bundle pricing ?

A pricing strategy in which managers offer multiple products or services as a single package ("bundle") is called bundle pricing.

Motivation of bundle pricing:

Particularly useful if your customers' demand is highly variable but price discrimination is impractical.

When consumers' price sensitivity of demand varies widely and market conditions make price discrimination difficult

If customers have diverse tastes, it can increase the seller's profit.

It is a method of simulating perfect price discrimination when perfect price discrimination is not possible or when charging multiple prices for the same product is illegal.

Types:

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Learn more about bundle pricing here: brainly.com/question/23175408

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