When a business earns more money than it spends, the entrepreneur is paid from the

An all-equity firm is considering the following projects:

lakkis [162]

Answer:

A. Compared with the firm's 12 percent cost of capital, Project W has a_______expected return.

a. lower

1. Project X has a______expected return.

b. lower

2. Project Y has a_______expected return

b. higher

3. Project Z has a______expected return.

a. higher

B. Project W should be_______.

b. rejected

1. Project X should be______.

b. rejected

2. Project Y should be_______.

a. accepted

3. Project Z should be_______.

a. accepted

c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be_______.

c. correctly rejected

1. Project X would be______.

c. correctly rejected

2. Project Y would be_______.

b. correctly accepted

3. Project Z would be________.

b. correctly rejected

Explanation:

Project Beta IRR <u> expected return</u>

W .62 9.2% = 5% + (0.62 x 7%) = 9.34%

X .77 10.3 % = 5% + (0.77 x 7%) = 10.39%

Y 1.27 14.1 % = 5% + (1.27 x 7%) = 13.89%

Z 1.42 17.0% = 5% + (1.42 x 7%) = 14.94%

8 0

3 years ago

Too much of a good or service is produced when there is a

Alexxandr [17]

Answer:

D

Explanation:

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

A public good is a good that is non excludable and non rivalrous. An example of a public good is a statue in a public park Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue

4 0

3 years ago

Mary's Baskets Company expects to manufacture and sell 24 comma 000 baskets in 2019 for $ 7 each. There are 2 comma 000 baskets

denis23 [38]

Answer:

The budgeted sales revenue is : $168,000

Explanation:

In 2019, as Mary's Basket Company has the opening Inventory balance of 2,000 baskets; projects to manufactures 24,000 baskets, plans to maintain ending inventory at $2,000 baskets without any work-in-process inventory; We have the baskets available for sales in the year of 2019 is:

Actual Ending Balance of 2018 + Projected manufactured baskets during the year 2019 - Planned ending Balance of the year 2019 = 2,000 + 24,000 - 2,000 = 24,000

The unit price is projected at $7.

Thus, we have the projected sales revenue is:

Projected Unit price x Projected baskets available for sales = 7 x 24,000 = $168,000

7 0

3 years ago

If a firm has economies of scale, increasing the quantity produced will lead to: multiple choice 1 higher long run average costs

xeze [42]

It results in lower short run average cost in economies of sale .

<h3>Economies of scale</h3>

Economies of scale refers to the situation where, as the quantity of output goes up, the cost per unit goes down. This is the idea behind “warehouse stores” like Costco or Walmart. In everyday language: a larger factory can produce at a lower average cost than a smaller factory. Figure 2 illustrates the idea of economies of scale, showing the average cost of producing an alarm clock falling as the quantity of output rises. For a small-sized factory like S, with an output level of 1,000, the average cost of production is $12 per alarm clock. For a medium-sized factory like M, with an output level of 2,000, the average cost of production falls to $8 per alarm clock. For a large factory like L, with an output of 5,000, the average cost of production declines still further to $4 per alarm clock.

One prominent example of economies of scale occurs in the chemical industry. Chemical plants have a lot of pipes. The cost of the materials for producing a pipe is related to the circumference of the pipe and its length. However, the volume of chemicals that can flow through a pipe is determined by the cross-section area of the pipe.

Learn more about economies of scale here :

brainly.com/question/15605103

#SPJ4

6 0

2 years ago

Group of answer choicesThe riskiness of the portfolio is greater than the riskiness of one or two of the stocks. The beta of the

boyakko [2]

Answer:

hhjfjdhdejejiwieueuue

3 0

3 years ago