Answer:
The required return is 7.92%
Explanation:
Required return is defined as the minimum return which the investor expects to accomplish through investing in the project.
The required return would be computed as:
Required return = Dividend paid each year / Selling price per share
where
Dividend paid each year is $6,40
Selling price per share amounts to 480.80 per share
Putting the values above:
Required return = $6.40 / $80.80
Required return = 7.92%
Answer: This is the type of cost known as Sunk.
- sunk cost is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken.
- A sunk cost refers to money that has already been spent and which cannot be recovered. ... Sunk costs are excluded from future business decisions because the cost will remain the same regardless of the outcome of a decision.
- The sunk cost effect is manifested in a greater tendency to continue an endeavor once an investment in money, effort, or time has been made. Evidence that the psychological justification for this behavior is predicated on the desire not to appear wasteful is presented.
Answer;
If a student wishes to go on the field trip, he or she must bring in a permission slip.
Explanation;
This is because a singular noun, student, should take a singular pronoun, and the subject must agree with the verb. That is; instead of using the noun student (singular noun) with the pronoun they (plural pronoun), one should use the pronouns he or she (singular pronoun)
So it wouldn’t be the same kind of basic reply to motivating employees.
Answer:
b. The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
Explanation:
Under the Net Present Value method we compute the present value of all cash flows, inflow or outflow
And these values are discounted at the minimum rate of return required if the resulting value is positive that means that the rate of return expected is less than minimum rate of return used to discount the value. In that case we are sure that the result of this project will be positive and favorable.
As the discount rate used is in, fact is higher than the actual rate of expected return, therefore this assures to return a profit.
Final Answer
b. The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
