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Phantasy [73]
4 years ago
9

The rate of return rule states that a firm should invest in any project offering a rate of return that is higher than the:

Business
1 answer:
HACTEHA [7]4 years ago
7 0

Answer:

OPPORTUNITY COST OF CAPITAL

Explanation: Opportunity cost of capital can be described as the incremental return a company foregoes when ever it is embarking on any internal investments.

The rule tries to show that a firm should only embark on projects or investment that will guarantee a higher rate of return after consideration of all the opportunity costs attached to the capital investment.

If the investment is a marketable security if the opportunity costs of capital is less than the expected rate of return,the investment is considering as a wrong choice.

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The assets of Star Company are $170.000 and the total liabilities are $10,000. The equity is
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160,000

Explanation:

160,000

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3 years ago
To ensure that mentions of a company in the news are received in a positive light, many firms think a prudent public relations s
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To ensure that mentions of a company in the news are received in a positive light, many firms think a prudent public relations strategy is to seek ___fewer___ hits.

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2 years ago
At her job of grooming horses, Polly Yaskovich worked 8 hours a day on Monday and Tuesday earning $67 each day. On Wednesday, sh
PSYCHO15rus [73]

Answer:

Your answer is that she needs to earn $148 on Friday

Explanation:

Calculate Average:

(67 + 82 + 78) / 4 = 56.75    (Remember 67 is worth Monday and Tuesday)

We know that the number that the 4 numbers add up to has to be divisible by 5 because our we need to average 75 and we have 5 days to average on.

5 x 75 = 375

67 + 82 + 78 = 227

375 - 227 = 148

(67+82+78+148) / 5 = 75

Your answer is that she needs to earn $148 on Friday

3 0
3 years ago
Applying Excel: Exercise (Part 2 of 2)
Vilka [71]

Answer:

ROI 15%

Residual Income $1,350,000

Explanation:

Residual Income is the difference between net income of the company and the required rate of return. It determines the excess of income generate than the minimum return. The formula to calculate the residual income is,

RI = Net operating Income - (Required rate of return * Cost of operating assets)

RI = $4,500,000 - (21% * $15,000,000 )

RI = $1,350,000

ROI = \frac{Net Operating Income}{Capital Employed}

Capital Employed = Sales - Average operating assets

ROI = 15%

Residual income is positive when the department has meet the minimum return requirement. Minimum return is the return that is required by the company stakeholders. The particular projects and activities are selected on the basis of residual income.  

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4 years ago
Dose scientific management theory ca cause dissatisfaction in the workers?
balu736 [363]
Answer: Yes it does
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3 years ago
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