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elena-14-01-66 [18.8K]
3 years ago
12

Which of the following statements is FALSE? Group of answer choices The right discount rate for a cash flow is the rate of retur

n available in the market on other investments of comparable risk and term. To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries. The equivalent after-tax interest rate is r(1 - τ). The actual cash flow that the investor will get to keep will be reduced by the amount of any tax payments.
Business
1 answer:
mart [117]3 years ago
8 0

Answer:

To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.

Explanation:

Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments,  they are used to calculate the risk free rate.

When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.

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Nadal Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead base
Anna11 [10]

Answer:

C.$46,730

Explanation:

Nadal Corporation manufactures custom molds for use in the extrusion industry. Based on the data available we first see the formula to calculate the total manufacturing cost of the job 532.

In general, sum of all the cost directly or indirectly included in the manufacturing cost. Therefore the formula is as below

Total Manufacturing Cost = Direct Labor Cost + Direct Materials Cost + Manufacturing Overhead Cost.

Direct labor cost $36,800

Direct materials used $5,000

Predetermined manufacturing overhead rate based on machine hours $17  which is = $17 x 290 hours

Manufacturing cots= 4930$

Total Manufacturing Cost = 36800 + 5000 + 4930

Total Manufacturing Cost = 46,730$

3 0
3 years ago
This shows how much profit is being made by each dollar of sales for the period being analyzed
dusya [7]
Net income ratio .........................
8 0
3 years ago
Why isn't marketing given a place of importance in the organizational hierarchy?
Tpy6a [65]

Answer:It is true that in many organization marketing does not have a place of importance in the organizational hierarchy as spending on marking cuts on their profit making. These firms need no marketing strategies as they are on regional or street or local level. Theses are small business. The customer base of these firms is near by public. These firms don’t work to reach far away customers

Explanation:

4 0
2 years ago
A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist.
beks73 [17]

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the <em>"consumer surplus"</em>. And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.

7 0
3 years ago
College president Wally contracts with Alice to teach a business law class. Alice does a fine job teaching, but she has an argum
solong [7]

Answer:

Specific performance

Explanation:

Based on the information provided within the question it can be said that in this scenario the order that Wally should seek is known as Specific performance. This is a court order which forces the breaching party to perform the agreed upon act, and by doing so complete the agreed upon specifications set forth by the contract. Failure to do so will find the individual in contempt of court.

6 0
3 years ago
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