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Zina [86]
3 years ago
15

Firms raise capital at the total corporate level by retaining earnings and by obtaining funds in the capital markets. They then

provide funds to their different divisions for investment in capital projects. The divisions may vary in risk, and the projects within the divisions may also vary in risk. Therefore, it is conceptually correct to use different risk-adjusted costs of capital for different capital budgeting projects.
Business
1 answer:
Andrew [12]3 years ago
6 0

Answer:

The given statement is True

Explanation:

A firm can easily raise its capital either by retaining funds of profits or by receiving funds from the outer market and then such collected funds are invested by firms in the various projects which are capital projects. The risk factor in both may vary that is in divisions and the different projects that are within the divisions. Thus, conceptually it is correct

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Let RUS be the annual risk free rate in the United States, RUK be the risk free rate in the United Kingdom, F be the futures pri
jeka57 [31]

Answer:

If RUS > RUK, then E < F ( C )

Explanation:

RUS = annual risk free rate in united states

RUK = annual risk free rate in United kingdom

F = futures price of $/BP  for 1 year

E = spot exchange rate for $/BP

To get a higher the future price

this conditions must be met

The annual risk free rate of the united states must be higher than the annual risk free rate of the united kingdom. if this condition is met then the the British pound will have a forward premium ( F ) > ( E )

3 0
3 years ago
How did you feel while you were discussing your inventories with your family members
Law Incorporation [45]
Felt pretty alright yo 
5 0
3 years ago
Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000
cupoosta [38]

Answer:

Follows are the instructions to this question:

Explanation:

Given:

Configuration of machine = \$16,000 \ \ \ \ 40  \ \ \ \ 25 \ \ \ \ 15

Machine hours= \$110,000  \ \ \ \ 5,000  \ \ \ \ 1,000 \ \ \ \  4,000

Order on Packing= \$30,000\ \ \ \  500 \ \ \ \ 150 \ \ \ \ 350

We have to use the following formula in order to measure the expected production overhead rate:

Estimated overhead production rate= Total projected production expenses and for period/Total base allocation sum

Machine Configuration =\frac{16,000}{(40+25+15)}= \frac{16,000}{80} =\$200 / \ setup

Machining hour= =\frac{110,000}{(5,000 + 1,000 + 4,000)} =\frac{110,000}{(10,000)}= \$11 / \  machine \ hour

Packing= \frac{30,000}{(500 + 150 + 350)}= \frac{30,000}{1000}= \$30/ \ order

6 0
3 years ago
Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, G
olchik [2.2K]

Answer:

The appropriate answer is "$9,300".

Explanation:

The given values are:

FMV,

= $31,000

Adjusted basis,

= $15,500

Encumbered mortgage,

= $9,300

Now,

The Gerald's outside basis will be:

= Adjusted \ basis-Encumbered \ mortgage+Share \ of \ mortgage

On substituting the given values, we get

= 15,500 - 9,300+(\frac{9,300}{3})

= 15,500 - 9,300 + 3,100

= 18,600-9,300

= 9,300 ($)

7 0
3 years ago
Sanjeev leases a house from Clara, and the lease has an option contract attached that permits Sanjeev to buy the house if he cho
Aleksandr-060686 [28]

The amount of the option fee need to be on amount agreed to by the parties in order to be legally binding.

<h3>What is a lease agreement?</h3>

A lease agreement is a legal arrangement whereby a person give another person the right to possess the land for use in return for a periodic compensation.

However, the lease agreement can lead to permanent purchase, based on the agreement of the lease.

In conclusion, the amount of the option fee need to be on amount agreed to by the parties in order to be legally binding.

Read more about lease agreement

<em>brainly.com/question/24460932</em>

8 0
3 years ago
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