Answer:
A decrease in a firm's WACC will increase the attractiveness of the firm's investment options.
Explanation:
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Answer:
The answer is: Management by Objectives
Explanation:
Management by objectives (MBO) was first outlined by Peter Drucker in 1954. MBO improves the performance of employees and management by defining their activities and objectives together. When employees have a say in the action plans they should execute and their expected goals, they will be more motivated and committed to achieve them.
Answer:
a) demand curve and demand schedule
Explanation:
A demand schedule is actually a table while a demand curve is a graph. Understanding the difference between the two of them is important in answering this question but both show different quantities of goods that consumers are willing to buy at different prices. An important assumption is that other factors affecting the quantity demanded are held constant. In summary, a demand schedule shows this relationship in a tabular form while demand curve shows it in a graphical form.
Answer:
D) The value of operations is calculated by discounting the horizon value, the tax shields, and the free cash flows before the horizon date at the unlevered cost of equity.
Explanation:
The adjusted present value method is very similar to the NPV method, but with some "adjustments". It determines the NPV of a project if it was financed solely with equity. Then it includes the tax benefits that could be obtained if the project was financed by debt. The benefits are basically lower taxes due to interest payments that reduce taxable income.
The APV uses the company's WACC as the discount rate.
