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VLD [36.1K]
3 years ago
5

Consider the WACC formula, if the required rate of return on preferred stock increases, holding all else equal, the WACC increas

es.
a) true
b) false
Business
1 answer:
Mashutka [201]3 years ago
3 0

Answer: True

Explanation:

The Weighted Average Cost of Capital (WACC) calculates the cost of capital to a company for the means of capital it uses to finance operations. It is based on the cost and the weight of the various capital types.

Formula is;

<em>= Cost of Equity * %Equity + Cost of debt * %Debt * ( 1 - Tax rate) + Cost of Preferred Stock * %Preferred stock</em>

The required rate of return on preferred stock is the same as the Cost of Preferred Stock. From the formula it is shown that if this rate increases, holding all else equal, total WACC will increase.

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Will the business be legal and not against any existing or foreseeable government regulation
bagirrra123 [75]

Answer:

A business will only be legal and not against any existing or foreseeable government regulation if there are documents proving that the business is legally registered, with the type of business and other details fully disclosed by the promoters during the formation and documentation stages.

Explanation:

The main document for incorporating a company in the United States is the Articles of Incorporation.  The document specifies  the primary purpose of the business, its location ( and state of incorporation), and the shareholdings.

7 0
3 years ago
Which repayment plan will you be placed on automatically?
BartSMP [9]

The standard repayment plan is the basic plan for repaying student loans. You're automatically placed in this plan when you start repayment, unless you select a different option.

4 0
3 years ago
Theresa, an HR manager, works for a firm that is planning to expand overseas. Theresa is in the process of workforce planning an
podryga [215]

Answer:

Identify labour supply-demand gaps

Explanation:

Theresa as an HR manager must identify the labour supply-demand gaps. She has identified the firm's labour demand, and now the next step should be to identify the supply of labour and then to understand the gap. The labour supply-demand gap will help the HR manager to identify the possible changes which she must do to fulfil the firm's labour demand.

5 0
4 years ago
Mitchell Corporation bought equipment on January 1, 2012 .The equipment cost $120,000 and had an expected salvage value of $20,0
murzikaleks [220]

Answer:

$100,000

Explanation:

Depreciable cost refers to the portion of an asset's costs that will be spread throughout the use-life of the asset. It is the amount to depreciated over the gainful life of the asset.  

Depreciable cost is calculated by subtracting salvage value from the original cost of the asset. Salvage value is also the scrap value.

Depreciable cost = asset cost - salvage value

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4 0
3 years ago
Which of the following statements is most correct concerning a project with normal cash flows (i.e., a cash outflow in Year 0 fo
Bond [772]

Answer: D. If the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.

Explanation:

Net present value (NPV) refers to the difference that exist between the present value of the cash inflows and that of the cash outflows for a particular period of time.

The net present value is used in capital budgeting to determine if a projected investment or project will be profitable or not. For a project with normal cash flows, if the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.

Therefore, the correct option is D.

7 0
3 years ago
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