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3 years ago

The company cost of capital, when the firm has both debt and equity financing, is called the:

Business

1 answer:

Virty [35]3 years ago

4 0

Answer:

the weighted average cost of capital

Explanation:

The weighted average capital cost refers to the amount that a corporation is supposed to pay for average to all of its securities owners in order to fund its investments. The WACC is generally called the cost of capital for the business. Crucially, it is determined not by managers but by the outside sector.

In other words, WACC reflects the minimal yield a corporation is expected to receive on an established investment portfolio to appease its investors, shareholders, and other equity suppliers, or they are looking to invest else where.

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Why there is limited foreign investment in Ethiopia?

matrenka [14]

Answer:

mainly because of the countries negative trade balance, but also because it is strictly regulated by the central bank which is the National bank of Ethiopia.

5 0

1 year ago

Open-end mutual funds are the most common type of investment company. Which of the following statements characterize these funds

victus00 [196]

Answer:

The statements that characterizes these funds is:

a. Fairly liquid investments.

b. Issue new shares in response to increased demand.

c. Increase diversification but do not reduce nonsystematic risk.

Explanation:

a) Fairly Liquid Invetsment: TRUE, as on the basis of demand the fund issuer can repurchase or reissue extra securities at any time so as to ensure proper liquidity to the investment.

b) Issue New Share for Increase Demand: TRUE, issuer can increase and decrease the no. of securities for trading as the demand for the same increases.

c) Increase diversification but not reduce unsystematic risk: TRUE. As Mutual Funds generally increase diversification of funds by investing in various sectors to minimize the systematic risk of the market but it cannot control the unsystematic risk of the market.

d) Require Minimum Purchase of 3000: FALSE. As the Minimum investment for the mutual funds starts from 250 or 1000 and not 3000.

e) Charges High Fees for Professional Managment: FALSE, As most of the open-ended mutual fund just charges 0.85% or low of the Investment Amount as total Expenditure for providing services, which is not so high as compared to returns provided by them.

Therefore, The statements that characterizes these funds is:

a. Fairly liquid investments.

b. Issue new shares in response to increased demand.

c. Increase diversification but do not reduce nonsystematic risk.

3 0

3 years ago

Select the correct answer

irakobra [83]

I think it’s b chapter 10

3 0

2 years ago

A phone call to a government official by an employee of the enron corporation disclosed the deception and dishonesty of the firm

UNO [17]

This employee played the role of a: whistleblower.

3 0

2 years ago

Match the accounting terminology to the definitions (Click the icon to view the definitions.)

Volgvan

Answer:

a. Accounting.

b. Certified public accountants.

c. Creditor.

d. Managerial accounting.

e. Certified management accountants.

f. Financial accounting.

Explanation:

1. Accounting: information system that measures business activities, processes that information into reports, and communicates the results to decision makers.

2. Certified public accountants: professional accountants who serve the general public.

3. Creditor: person or business to whom a business owes money.

4. Managerial accounting: field of accounting that focuses on providing information for internal decision makers.

5. Certified management accountants: professionals who work for a single company.

6. Financial accounting: field of accounting that focuses on providing information for external decision makers.

7 0

2 years ago