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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.

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Bramble Corp. factors $7200000 of its accounts receivables with recourse for a finance charge of 5%. The finance company retains
saul85 [17]

Answer:

See below

Explanation:

Given the above information, first we'll compute net proceeds

Cash received $7,200,000 × 86%

$6,192,000

Add:

Due from factors $7,200,000 × 9%

$648,000

Less;

Recourse obligation

($5,000)

Net proceeds

$6,835,000

5 0
3 years ago
Caroline is an artist. She purchases canvas, paints, brushes, and accessories for $75. She sells orn of her original paintings t
liberstina [14]

Answer:

Value added to the gallery will be $3000

So option (C) will be correct answer

Explanation:

We have given that Caroline sells her original painting for $1500 to an art gallery.

And after that her painting was sold to an art lover at cost of $4500

We have to find the value added to the gallery

Value added to the gallery will be equal to difference of price sold to the art lover and cost at which painting is sold to art gallery

So value added to gallery = $4500 - $1500 = $3000

So option (C) will be correct answer

4 0
3 years ago
Suppose you are committed to owning a $203,000 Ferrari. If you believe your mutual fund can achieve an annual rate of return of
liraira [26]

Answer:

the present value is $88,087.08

Explanation:

The computation of the present value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

$203,000 = Present value × (1 + 0.11)^8

So, the present value is $88,087.08

hence, the present value is $88,087.08

7 0
2 years ago
This is a sum of numbers that accumulates with each iteration of a loop. A. Running total B. Final total C. Grand finale D. Gall
kicyunya [14]

Answer:

The correct answer is A. Running total.

Explanation:

The accumulated total can be expressed as a numerical value or a percentage. In Reporter reports, you can calculate a cumulative total for more than one category.

For example, you can create a report that shows the income for each of the last four quarters. The accumulated total will show the total income at the end of each quarter. If you add a cumulative total as a percentage of the total sold, you can see the percentage of year-round sales achieved at the end of the quarter.

7 0
2 years ago
Anna and ben are up for the same promotion at work. when it comes time to make a decision, the management committee chooses ben
harkovskaia [24]
I believe that Anna has just encountered a glass ceiling. 
This means that Anna has encountered a barrier that her from rising to the level of management committee through promotion simply because she is a woman.This term is extended to refer to the obstacles that hinder the advancement of minority women. It is often difficult for minority women to rise to ranks  simply because of their responsibilities, color and discrimination. In this case, Anna being a good mother to her children makes the management think that she wont want more responsibilities. 
3 0
2 years ago
Read 2 more answers
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