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3 years ago

The ________ is the rate of return that a firm must earn on its investments in order to maintain the market value of its stock.

1 answer:

8 0

The cost of capital is the rate of return that a firm must earn on its investments in order to maintain the market value of its stock.

Answer is c.

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What method is used to implement controls in the rm process?

Mariana [72]

<span>Convey a message by communication , organize, actualize, and coordinate the control's who, what, when, where, and how into Standard operating procedures, composed and verbal requests, mission briefings, and staff gauges with clear and straightforward execution requests.</span>

5 0

3 years ago

Read 2 more answers

A company had a choice between Project X and Project Y. The net present value of Project X is $1,000,000, and the net present va

vekshin1

Answer:

The opportunity cost of that decision is - $250,000

Explanation:

For computing the opportunity cost, we have to use the formula of opportunity cost which is shown below:

= Return of project which is not chosen - the return of a chosen project

= $750,000 - $1,000,000

= - $250,000

Since in the question, it is given that the chosen project is X so we write the project X amount in the formula and the not chosen project of-course is Y.

Hence, the opportunity cost of that decision is - $250,000

8 0

3 years ago

Mill Company began operations on January 1, 20X1, and recognized income from construction-type contracts under different methods

Vinvika [58]

Answer:

Deferred tax asset balance on December 31, 20X3 = $115,500

Explanation:

The computation of the amount of deferred income taxes should Mill report is shown below:

<u>Year Tax purpose Book purpose Difference Deferred tax book </u>

20X1 $400,000 $0 $400,000 $84,000

20X2 $625,000 $375,000 $250,000 $52,500

20X3 $750,000 $850,000 ($100,000) ($21,000)

Deferred tax asset balance on December 31, 20X3 = $115,500

5 0

2 years ago

How would you describe the savings rate in america compared with other industrialized countries?

Natasha_Volkova [10]

United States’ savings rate is only around 10%, much lower than any other countries. There's some reasoning behind it. In fact, countries with the highest savings rates weren’t necessarily the countries with the highest GDPs. GDP os US is $56,300 per capita but their household savings rate of just 4.9%. Also, in Hungary their GDP is $26,000 while their savings rate of 9.0%. This implies that the money they have isn't place on one nest only or put to savings, rather allocated to a much more important sectors. We should not forget taking into account their purchasing power parity, the rate a currency would have to be converted into another to buy the same amount of goods and services of the country.

6 0

2 years ago

The market risk premium is 9.0%, and the risk-free rate is 5.0%. If the expected return on a bond is 9.5%, what is its beta?

leva [86]

Answer:

The beta is 1

Explanation:

The computation of beta using the CAPM model is shown below:

As we know that

Expected rate of return = Risk free rate of return + Beta × Market risk premium

9.5% = 5% + Beta × 9.0%

9.5% - 5% = Beta × 9.0%

9.0% = Beta × 9.0%

So, the beta is 1

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

And, the same is to be considered

4 0

2 years ago

The​ ________ is the rate of return that a firm must earn on its investments in order to maintain the market value of its stock.

The ________ is the rate of return that a firm must earn on its investments in order to maintain the market value of its stock.