1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Hitman42 [59]
3 years ago
8

Which one of the following represents the minimum rate of return a firm must earn on its assets if it is to maintain the current

value of its securities?
A. Pretax cost of debt
B. Weighted average cost of capital
C. Cost of equity
D. Aftertax cost of debt
Business
1 answer:
FinnZ [79.3K]3 years ago
5 0

Answer:

B. Weighted average cost of capital

Explanation:

The Weighted average cost of capital is abbreviated as the WACC. It is the weighted average of cost of common equity, cost of preferred equity and aftertax cost of debt. For a company to have a breakeven in returns, they need to earn a minimum rate of return on its assets which is equivalent to the weighted average cost of capital(WACC) making choice B correct.

You might be interested in
How can producers maximize their profit?
Alina [70]

Answer:

the best possible answer is keep the marginal costs below marginal revenue.

7 0
3 years ago
A perfectly elastic demand curve implies that the firm: A) must lower price to sell more output. B) can sell as much output as i
dsp73

Answer:

A perfectly elastic demand curve means that the firm can sell as much output as it chooses at the current price.

Explanation:

The perfectly elastic demand implies that the demand curve is horizontal line parallel to the X axis. The price is fixed at a point and the firm can sell any amount of output at this point. The demand is infinite at the given price level. If the firm makes any changes in this price level, the demand will become zero.

4 0
3 years ago
Lisa is wondering if her company is earning the income they expected to earn at the beginning of this year. She looks at to see
andre [41]

Lisa is wondering if her company is earning the income they expected to earn at the beginning of this year. She looks at to see how the money looks, while remembering that this budget does not show cash outlays. This type of budget is called Expense Budget

<h3>What is Expense Budget?</h3>
  • The Expense Budget displays the revenue and capital expenditures of several ministries and departments and provides estimates for each under "Plan" and "Non-Plan."
  • It provides a thorough study of various expenditure kinds as well as a general explanation for why estimates vary. The Expense Budget also includes the Central Government's requests for grants.
  • Capital assets are crucial expenses for firms since they include cash outlays for production machinery and other equipment that generates revenue.
  • Due to the fact that production equipment is more expensive than standard office supplies or monthly expenses, financing is sometimes required to purchase capital assets.
  • The purchase of capital assets is typically included in expense budgets, and their effects on working capital and future cash flows are quantified. Businesses wouldn't be able to accomplish their operational goals without well managed capital investments.

To know more about Expense Budget with the given link

brainly.com/question/14318672

#SPJ4

3 0
2 years ago
Which of the following makes a true statement? Concurrent powers are those that are exclusive to the states, such as ratifying a
bearhunter [10]

Answer:

The answer is: Delegated powers are those that are exclusive to national government, like printing money.

Explanation:

Delegated powers are powers given to the federal (national) government and specifically outlined by the US Constitution (Article 1, Section 8). They outline the authority and limits of the three branches of the federal government (legislative, executive and judiciary). Some examples of delegated powers are power to declare war, lay and collect taxes, print and coin money, etc.

5 0
3 years ago
What is one of the advantages of buying an existing business?
leonid [27]
You don't have to pay for construction and people are already aware of the business's existence.
4 0
3 years ago
Other questions:
  • Kylie has been practicing repeating phrases such as, "I know I don’t wear the latest fashions, but I am comfortable. Surely othe
    5·1 answer
  • Which of the following has the greatest impact on your cash flow?<br>​
    14·1 answer
  • Botox Facial Care had earnings after taxes of $310,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $53
    12·1 answer
  • In which economic system does the government own most of the factories, equipment, and agricultural lands?
    10·1 answer
  • Nick, a skilled welder, had been working for 12 years in a factory that recently closed. This has caused high unemployment in hi
    14·1 answer
  • W+w+w
    14·1 answer
  • Why do credit cards not want you to pay your balance in full? explain the costs associated with a credit card.
    11·1 answer
  • Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?
    8·1 answer
  • A firm has 4,250 shares of stock outstanding with a market value of $16.65 a share, $64,800 of long-term debt with an interest r
    10·1 answer
  • Bindy Crawford created a corporation providing legal services, Skysong, Inc., on July 1, 2022. On July 31 the balance sheet show
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!