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kkurt [141]
3 years ago
8

The weighted average cost of capital (WACC) is:__________

Business
1 answer:
Nimfa-mama [501]3 years ago
3 0

Answer:

a) the required rate of return for all of a firm's capital investment projects.

Explanation:

The weighted average cost of capital refers to the blended cost of capital of a firm from all its sources. It is the proportionate representation of a firm's cost of capital from its various sources. A firm's sources of capital include bonds, common stock, preferred stocks, and other long term sources of are factored in WACC.

In calculating the WACC, each source of capital is proportionately weighted according to its percentage contribution to capital.  The WACC is applied in capital budgeting as a firm preferred discount rate when calculating the net present value.

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Liono4ka [1.6K]

Yes, vgfyhh6yh6h6hyhyhtvg6ybgy6hy6 is correct!

7 0
3 years ago
Read 2 more answers
An economist has conducted extensive research and has found that jones cola is a substitute for tucker cola. ceteris paribus, th
madam [21]

Answer: Increase in demand

Explanation: Change in demand occurs when factors affecting demand other the its price changes. While, a change in quantity demanded occurs when the price of the good changes other things constant. Since, jones cola and tucker cola are substitutes to each other. A rise in the price of jones cola will shift demand towards tucker cola. This, will lead to a rightward shift in the demand curve for tucker cola and an increase in demand for tucker cola.

8 0
4 years ago
What are the three principal forms of business organization? what are three advantages and disadvantages of each?
Soloha48 [4]
<span>The three principla forms of business organization are corporations, proprietorship and partnerships. Corporations have certain advantages like indefinite life, limited liability and eas of ownership transfers as well as easy access to capital markets. Corporations also have disadvantages like their earnings are subjected to double taxes, they must file federal reports for registration and state reports as well which are incredibly time consuiming and difficult. Proprietorships are unincorporated businesses that are owned by a single person. This single person is responsible for bearing all the losses as well as managing all the business, but they also get to take all the profits. This type of business is easy and cheap to form and has few federal regulatiosn. The income from it is not subjected to corporate tax but on personal taxes. It is harder to raise capital for this type of business, and the life of the business is limited to the life of the founder. Finally, partnerships are two or more people running and managing a business where the goal is to turn a profit. It sadvantages are that it is easy and inexpensive to buil, has few government regulations, and the income is only taxable at the partners personal level, not as a corporate tax rate. The disadvantages are that there is an unlimited liability to the partners and they are responsible for the extent of the business, it is difficult to transfer ownership and all partners must always agree on how they ahndle their interests as well as growth and raising capital.</span>
6 0
3 years ago
Jason and Hernando both decided to invest in the same company. Jason expects to be paid back in full for his investment plus som
antoniya [11.8K]

Answer:

Jason investment - debt security

Hernando investment - equity security

Explanation:

By using the information, we get to know that Jason expected that full investment would be paid back along with some interest which means he is dealing in debt security which includes the loan plus interest part.  

Whereas, Hernando expected that dividend is received on that amount which he is invested which means that he is dealing in equity security.  

The equity security involves stock in equity security whereas loan or bond is a debt security

4 0
4 years ago
The product life cycle refers to the stages a product moves through from the time it enters the market until what time?
STatiana [176]

Answer:

Product life cycle refers to the stages a product moves through from the time it enters the market until the time it disappear.

Explanation:

The Product Life Cycle Stages is a model in economics and marketing. Products enter the market and gradually disappear again.

The product life cycle is separated into four different stages,

  • Introduction.
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  • Maturity.
  • Decline.

So,  in this case the correct answer is the product life cycle refers to the stages a product moves through from the time it enters the market until the time it disappear.

3 0
3 years ago
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