18.9%
Finding a company's cost of capital is crucial in corporate finance for a few key reasons. For illustration, a corporation might calculate its net present value using the WACC discount rate. A lower WACC typically denotes a healthy company that can draw investors at a reduced cost. The industry has three firms with un levered betas of 0.7, 1.1, and 1.6. the discount rate to use for a un levered firm that wants to enter this industry is 18.9% if the risk-free rate is 3 percent and the expected return on the market is 17 percent
The WACC discount formula is: WACC = E/V x Ce + D/V x Cd x (1-T)
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Answer:
Option C
Explanation:
C. There is a high degree of social consensus
Answer:
Current Assets :
Work in process inventory 23,000
Raw materials inventory 17,000
Finished goods inventory 35,000
Supplies 500
Accounts receivable 4,000
Prepaid expenses 2,000
Short-term investments 25,000
Cash 22,000
Total 128,500
Explanation:
Current Assets are always shows in the order of their liquidity in the Balance Sheet. That is the order in which they are quickly be converted into cash within a period of less than 12 months. Start with the Inventories to cash and cash equivalents as shown above.
Answer:
The payback period for Silva Inc. is 3 years. If considering only this method of evaluating projects, Silva Inc will invest in project A and dismiss project B.
Payback period A=2,1539 years.
Payback period B= 3,0042 years
Explanation:
The payback period refers to the amount of time it takes to recover the cost of an investment. The payback period is the length of time an investment reaches a breakeven point.
<u>Cash Flow A:</u>
$
I0= - 70.000
1= 28000 = -42000
2= 38000 = -4000
3= 26000 = 22000
Payback period= full years until recovery +
unrecovered cost beginning year/Cashflow during year
Payback period A= 2 + (4000/26000)= 2,1539 years.
<u>Cash Flow B:</u>
$
I0= -80000
1= 20000 = -60000
2= 23000 = -37000
3= 36000 = -1000
4= 240000 = 239000
Payback period B= 3 + 1000/240000= 3,0042 years
<u>The payback period for Silva Inc. is 3 years. If considering only this method of evaluating projects, Silva Inc will invest in project A and dismiss project B. </u>
<u></u>
If this question has the same choices like the previous ones posted here, then the answer would be letter letter C. <span>The speaker is willing to improve workplace safety.
</span><span>
Choices to this question are:
a.
The speaker is an environmentalist and wants to preserve resources.
b.
The speaker is concerned that employees will be lazy.
c.
The speaker is willing to improve workplace safety.
d.
The speaker will not allow OSHA or the EPA to inspect their job site.</span>
