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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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4 years ago
If you are planning to put up a business what is the first thing that you should do to make your business successful
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Great capital or decorative shop or good advicer

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3 years ago
Most informational reports are written a. by only top business executives. b. using the indirect organizational strategy. c. for
Aliun [14]
<h2>using formal writing style</h2>

Explanation:

Informational reports are written for the purpose of internal audience.

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4 years ago
The following items appeared in the year-end trial balance for the Brown Coffee Company: Debits Credits Revenues $ 600,000 Oper
alexgriva [62]

Answer:

What amount should be reported in the company's income statement as income from continuing operations?

$54000

Explanation:

revenue                           600000

Operating expenses  -420000

Interest expense           -20000

gain on sale of investments 30000

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Income                                90000

Tax rate                                   40%

tax expense                     36000

Net income                 54000

6 0
3 years ago
Read 2 more answers
Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S
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Answer:

Unit product cost is equal to $66

Explanation:

It is given that direct material cost = $14

Direct labor cost = $44

Variable manufacturing overhead = $8

We have to find the unit product cost

Unit product cost is the sum of material cost labor cost and manufactoring overhead

Therefore unit product cost = $14+$8+$44= $66

So unit product cost is equal to $66

4 0
3 years ago
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