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Arlecino [84]
3 years ago
14

Bradford, Inc is evaluating the following projects based on their weighted average cost of capital. Assume Bradford can raise mo

ney at the rate of 11% using the combination of debt and retained earnings, and at the rate of 14% if they use the combination of debt and a new issue of common stock. Bradford does not use preferred stock. If Bradford can raise $40,000,000 at the 11% rate, which of the following project(s) should they undertake? Project Cost Return A $30,000,000 18.0% B $10,000,000 16.0% C $10,000,000 15.0% D $20,000,000 12.0%
Business
1 answer:
drek231 [11]3 years ago
5 0

Answer:

Explanation:

Projects which has highest return shall be accepted.

Assuming brad ford can take up to $40,000,000 at the rate of 11 % and more funds at 14 % cost of capital.

Now we will calculate weighted average return for each combination

For a and b = (30×18+ 10×16)/40 = 17.5

For second option

(20×12 + 10×15 +10×16)/40 = 13.75

So projects A and B shall be accepted

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Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amo
Rudik [331]

Answer:

Total Deposits  = $4937.5 billion  

Explanation:

given data

currently in reserves = $400 billion

reserve requirement = 8 percent

reserves amount = $5 billion

solution

first we get  here Minimum Required Reserves that is express as

Minimum Required Reserves = Current Reserves - Excess Reserves    .........................1

put here value we get

Minimum Required Reserves = $400 billion - $5 billion

Minimum Required Reserves = $395 billion

and

Total Deposits is express as

Total Deposits  = \frac{minimum\ required\ reserve}{reserve\ required}      ......................2

Total Deposits  = \frac{395}{0.08}

Total Deposits  = $4937.5 billion  

8 0
4 years ago
Howe Corporation calculates inventory and cost of goods sold one time at the end of every accounting period. In contrast, Kelty
Mariana [72]

The difference is only in the strategy the company wants to use. For some market segments calculating the cost of goods sold by the permanent or periodic method may be more advantageous and allow a better monitoring of business efficiency and profitability. Companies often choose the method that best fits their organizational strategy. The periodic method, for example, as used by Kelty Industries, can be useful for greater input and output control, process optimization, consumer behavior assessment, and other advantages. But if Howe and Kelty wanted to change the calculation method, it would not affect anything, as the result would be the same regardless of the calculation, periodic or daily.

3 0
4 years ago
The average monthly rent for one-bedroom apartments in Chattanooga has been $700. Because of the downturn in the real estate mar
Olenka [21]

Answer:

y>700 and 700>y>0

Explanation:

Though there is not so much information, but the fact that $700 is an average. We can work with two hypothesis at first, he first Hypothesis before the downturn the rent are over $700. And the second one, the bedroom rent are under $700.

1) Graphically, the shaded area before the downturn, represents the set of values for Rents greater than $700. So, rent (y) > 700

2) Graphically, the shaded area after the downturn, represents the set of values for Rents lesser than $700. So, rent 700 <y<0

5 0
4 years ago
This year three manufacturers of mattresses have closed shop and there is only one mattress manufacture left. With few additiona
Rainbow [258]

Answer:

the supply will decrease causing an increase in pricing on mattresses.

Explanation:

Monopolism occurs when only one supplier produces a product with no other competitors. They control the supply and price of commodities.

Since other mattresse sellers have closed shop, the final seller will have monopoly of the mattresse market.

In order to maximise revenue he will reduce supply and increase prices so that customers will have no choice but to buy the scarce mattresse at higher price.

8 0
3 years ago
investigating the cost-effectiveness of operative versus nonoperative treatment for distal radius fractures
Rom4ik [11]

The average cost of care for a radius fracture patient ranged from $6,577 to $8,181 depending on the definition of an episode of care. No matter definition, the variant in cost turned into high. The fee of the surgical procedure itself composed sixty-one% to ninety-one% of the total cost of an episode.

If the distal radius fracture is in a terrific function, a splint or forged is carried out. It regularly serves as a final treatment until the bone heals. normally a solid will stay on for up to 6 weeks. Then you may be given a detachable wrist splint to wear for comfort and aid.

Whilst distal radial fracture surgery is not constantly important that allows you to fix the damage, this kind of wrist surgical operation is one of the maximum typically achieved by way of orthopedic physicians.

Learn more about radius fracture here: brainly.com/question/15522073

#SPJ4

3 0
2 years ago
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