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
Bingel [31]
3 years ago
6

The average of a company's cost of equity, cost of preferred, and aftertax cost of debt that is weighted based on the company's

capital structure is called the:
a. reward-to-risk ratio.

b. weighted capital gains rate.

c. structured cost of capital

d. weighted average cost of capital.
Business
1 answer:
kotykmax [81]3 years ago
3 0

Answer: Option D

                                         

Explanation: In simple words, weighted average cost of capital refers to the   amount of return that the investors of a company are expecting. It includes all the security holders of the company and calculates the rate as per the weights that are applicable in the target capital structure.

   Weighted average cost of capital is of high importance as it helps an organisation to clearly evaluate and analyze its current financial situation and if they need to change their existing capital structure.

A high WACC calls for higher profits as company has to make sure that security holders gets their returns and vice versa.  

You might be interested in
Consistent with____recognition principle, companies record revenue at the time goods are provided to customers.
Sonbull [250]

Answer:

Revenue

Explanation:

In finance, revenue recognition principle can be associated to acrrual accounting, it stated that recognition of revenue should only take place when revenue is earned or received, it shouldn't be when there is received cash. It helps to know periods that revenue is needed to be recognized.

It should be noted that Consistent with revenue recognition principle, companies record revenue at the time goods are provided to customers.

4 0
3 years ago
Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses ma
liq [111]

Answer: $450,000

Explanation:

From the question, we are told that the activity rate for Machining is $150 per machine hour, and the activity rate for Inspection is $560 per batch and that Product X has machine hours of 3,000.

Machining cost assigned to poduct X will be gotten by multiplying the machine hours by the activity rate per machine hour. This will be:

= 3000 × $150

= $450,000

4 0
3 years ago
Dean's Coffee Shop makes a blend that is a mixture of two types of coffee. Type A coffee costs Deon $4.75 per pound, and type B
sergiy2304 [10]

Answer:

type B 50 pounds

type A 94 pounds

Explanation:

First we construct the equation system:

\left \{ {{A_q + B_q = 144} \atop {4.75A_q + 5.9B_q = 741.5}} \right. \\

Now we clear one and replace:

A_q = 144 - B_q\\4.75A_q + 5.9B_q = 741.5\\4.75(144 - B_q) + 5.9B_q = 741.5

And we can solve for type B:

4.75\times 144 - 4.75B_q + 5.9B_q = 741.5\\1.15B_q = 741.5 - 684\\B_q = 57.5 / 1.15 = 50

And now we can solve for quantity of A as well:

A = 144 - 50 = 94

<u>Finally we can check the answer if it is correct:</u>

50 x 5.9 + 94 X 4.75 =

   295       +      446,5‬   = 741,5‬

5 0
4 years ago
Under cash-basis accounting, if a company provides services to a customer in the current year but does not collect cash until th
PIT_PIT [208]

Answer:FALSE

Explanation:CASH BASED ACCOUNTING is an accounting that is considered only when the money payment is effected. It does not take in account cash which has not been received. In the financial statements it will only include cash received during the year or period under review. This makes it different from Accrual based accounting which also includes cash not yet received but are been expected.

3 0
3 years ago
Studies show that dealing with excessive and unimportant e-mail and text messages in the workplace can lead to A) decreased empl
yulyashka [42]

Answer:

The correct answer is letter "D": concentrating on the urgent rather than the important.

Explanation:

<em>Excessive e-mailing</em> causes increased employee conflict and stress. Under that scenario, employees have to find ways to discriminate among all those messages the ones the have to attend first. <em>This leads to workers replying to urgent e-mails rather than important messages. </em>The overall situation provokes delays in major projects or to leave on standby potential opportunities to generate profit.

6 0
3 years ago
Other questions:
  • When reactions to a small scale marketing effort are used to predict reactions in a larger​ area, the testing method​ is:The alt
    12·1 answer
  • The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:
    6·1 answer
  • ABC Services reported the following transactions for September, 2013. A) The owner opened the business with a capital contributi
    13·1 answer
  • Westerville Company reported the following results from last year’s operations: Sales $ 1,000,000 Variable expenses 300,000 Cont
    13·1 answer
  • When interest rates rise, how might businesses and consumers change their economic behavior?
    6·1 answer
  • Mall owners like to have __________ located along the walkways of their malls, because they create a marketplace type of atmosph
    13·1 answer
  • Sunland Company purchases $50,400 of raw materials on account, and it incurs $61,300 of factory labor costs. Journalize the two
    12·1 answer
  • Two methods, A and B, are available for teaching a certain industrial skill. There is an 80% chance of successfully learning the
    15·1 answer
  • Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries
    13·1 answer
  • If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!