Answer:
a would be the answer for the question
Answer:
The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.
Explanation:
Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).
As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.
On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.
Answer:
rely on the invisible hand of the market to reallocate resources,
Explanation:
The invincible hand was adams Smith's idea which is defined as an observable market force that helps the demand and supply of goods in a free market to attain equilibrium naturally without government intervention in the market thereby leaving the people alone to buy and sell freely among themselves . This would naturally choose type of goods to be produced and reduce resource waste by closing Down weak markets that produce less demanded products.
Answer:
after 9 years:
FV $15,625.2437
in 14 years:
FV $31,223.0270
last, at the nineteenth year:
FV $55,222.1501
Explanation:
We have to solve for the annuity of 1,200 dollar with a yield of 9% at the proposed times:
C 1,200.00
time 9
rate 0.09
FV $15,625.2437
time = 14
FV $31,223.0270
time = 19
FV $55,222.1501
