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I am Lyosha [343]
4 years ago
15

Kurt, who is a divisional manager, continually brags that his division’s required return for its projects is 1 percent lower tha

n the return required for any other division of the firm. Which one of the following most likely contributes the most to the lower rate requirement for Kurt’s division?
A.Kurt tends to overestimate the projected cash inflows on his projects.
B.Kurt tends to underestimate the variable costs of his projects.
C.Kurt has the most efficiently managed division.
D.Kurt’s division is less risky than the other divisions.
E.Kurt’s projects are generally financed with debt while the other divisions’ projects are financed with equity.
Business
1 answer:
Viefleur [7K]4 years ago
3 0

Answer:

D. Kurt’s division is less risky than the other divisions.

Explanation:

Based on the information provided within the question it can be said that the most likely reason is that Kurt’s division is less risky than the other divisions. Just as the saying goes "the greater the risk, the greater the reward", the same goes for the opposite, the lower the risk that a division has to undertake the lower the percent for the required return.

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3 years ago
Paper Express Company has a balance sheet which lists $85 million in assets, $40 million in liabilities, and $45 million in comm
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Answer:

$90

Explanation:

Based on the information given we were told that after the assets was replaced at the amount of $115 million, the Company market share price was the amount of $90 which simply means that Paper Express's market value per share will be the market share price of the amount of $90.

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3 years ago
A document used to manage points of discussion or dispute that arise during projects, in order to monitor them and ensure that t
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Answer: (D) Issue log

Explanation:

The issue log is one of the type spreadsheet or the documentation that basically helps in tracking the errors or problem in the project and it directly affecting the performance of the project.

The main objective of the issue log is that it helps in organizing the current issue based on the consumer remarks about the error in the document.

According to the question, the issue log is basically used for managing the various types of discussion points and monitoring the main issue in order to resolve the actual issue in the given project.

 Therefore, Option (D) is correct answer.  

     

8 0
3 years ago
Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4
Mademuasel [1]

Answer:

Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?

The nominal interest rate = 8.86%.

Explanation:

Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%

Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%

Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.

Therefore, the nominal interest rate for the question given = 8.86%.

4 0
4 years ago
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pav-90 [236]

Answer:

(B) Inform.

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Most business messages achieve nothing more than to inform. They explain procedures, announce meetings, answer questions, and transmit findings. Some however, are meant to persuade and that is by selling out products, increasing the morale of employees, convincing managers and gaining more customers. But most is still to inform as they announce meetings, answer questions, and transmit findings and these are called informative messages.

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