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pychu [463]
3 years ago
13

A firm's WACC can be correctly used to discount the expected cash flows of a new project when that project will: Multiple Choice

be financed solely with new debt and internal equity. have the same level of risk as the firm's current operations. be managed by the firm's current managers. be financed solely with internal equity. be financed based on the firm's current debt-equity ratio.
Business
1 answer:
Serggg [28]3 years ago
5 0

Answer:

...when that project will have the same level of risk as the firm's current operations

Explanation:

Weighted average cost of capital (WACC) is the company's cost of capital based on its proportion of equity and debt used in its capital structure. It can be used as the discount rate for calculating the present value of future expected cashflows of a project if the project is determined to be of similar risk to the company's operations; meaning that the estimated beta of the project is the same as the beta of the firm.

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Mashutka [201]

Answer:

The correct answer is  - No,

Explanation:

The correct answer is  - No,

The answer is no because the broker brings a buyer who is ready to give 1005 cash offer which is against the legal agreement defined by the owner. owner state that he is only taking a 25% cash offer.

Therefore the owner wouldn't consider the broker and didn't due broker commission.

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3 years ago
Monica is interested in changing careers, and she needs to find a job Web site that lists careers from all industries. What type
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Depending on her area and expertise i would recommend a state website or a government approved agency 
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3 years ago
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A company needs 550,000 items per year. It costs the company $330 to prepare a production run of these items and $5 to produce e
Svetlanka [38]

Answer:

Company A

The number of items that should be produced in each run to minimize total costs of production and storage is:

= 22,000 units

Explanation:

a) Data and Calculations:

Total annual demand = 550,000 units

Cost per production run = $330

Cost per unit = $5

Storage (holding) cost per item = $0.75

The number of items that should be produced in each run to minimize total costs of production and storage is given by Economic Order Quantity (EOQ) formula

= square root of (2 * 550,000 * $330)/$0.75

= square root of $363,000,000/$0.75

= square root of 484,000,000

= 22,000 units

6 0
2 years ago
Under the Uniform Securities Act, which of the following negates a client's right to a civil suit for damages?
DanielleElmas [232]

Answer:

I

Explanation:

The Uniform securities act is a framework that serves to protect investors as it guides the states securities regulation in managing security related fraud and also helps the security exchange commission's enforcement and regulation .

It allows the clients right to civil suit for damages under certain conditions except a situation such as when the advice that is the subject of the suit was given more than three years ago.

A civil suit can only be filed on the earlier of "within 3 years of the alleged infraction or 2 years of the discovering of the violation"

5 0
3 years ago
Harrods PLC has a market value of £136 million and 4 million shares outstanding. Selfridge Department Store has a market value o
Lisa [10]

Answer:

the stock price after the acquisition is $37.30

Explanation:

The computation of the stock price after the acquisition is given below:

= Worth of combined synergy ÷ (outstanding shares = harrods shares)

= £194 million ÷ (4 million + 1.2 million)

= £194 million ÷ 5.2 million shares

= $37.30 per share

hence, the stock price after the acquisition is $37.30

We simply applied the above formula so that the correct answer could come

5 0
3 years ago
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