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4 years ago

The weighted average cost of capital for a firm with debt is the:

Business

1 answer:

tankabanditka [31]4 years ago

3 0

Answer:

Rate of return a firm must earn on its existing assets to maintain the current value of its stock.

Explanation:

The expected return is calculated on cost of capital, and that the cost of capital is weighted average cost of capital.

This is because weighted average cost of capital is the cost of capital which is based on the overall risk and weights of capital in the total capital of the company.

When the net return on total capital is less than weighted average cost of capital it means the company is not able to meet the total cost of capital and accordingly, the company faces some sort of losses.

Therefore, minimum return shall be equal to weighted average cost of capital.

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Suppose winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. one

timama [110]

60k and 4k because thats what he put he lost

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3 years ago

The production of methamphetamine (meth) is a social problem in the Midwest. Iowa is considering two potential programs: Operati

Rina8888 [55]

Answer:

The answer is: C) Operation Methbust would reduce the supply of meth; Operation Say No would reduce the demand for meth.

Explanation:

Operation Methbust is about reducing the number of suppliers of methamphetamines by destroying meth labs and arresting those responsible. While Operation Say No to Meth is about reducing the demand of meth by educating possible consumers about the risks of using meth.

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3 years ago

Read 2 more answers

Which one of the following statements is correct concerning the payback rule?

Naya [18.7K]

The correct concerning the payback rule is rule is flawed because it ignores all cash flows after some arbitrary point in time.

Payback period in capital budgeting refers to the time required to recover funds spent on an investment or to reach breakeven. Example: If at the beginning of year 1 he invests $1,000 and at the end of year 1 and his second year he earns $500, it pays for itself within 2 years.

The number of years it will take to recover the money invested. For example, if it takes 5 years to recover the cost of an investment, the payback period is he 5 years.

Payback period is defined as the number of years required to recover the original cash investment. In other words, the period during which a machine, plant, or other investment has generated sufficient net income to cover its investment costs.

Learn more about Payback period brainly.com/question/23149718

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7 0

1 year ago

Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $13,000 and $49,000, respectively. The partne

brilliants [131]

Answer:

Explanation:

Based on the information that has been given in the question, the following answer can be provided

a. Determine the amount of Pepper's deficiency.

First, we need to calculate the loss that was recognized. This will be:

= ($13,000 + $49,000) - $24,000

= $62,000 - $24,000

= $38,000

Pepper's share of the loss will then be:

= $38,000/2

= $19,000

Pepper's deficiency will now be his contribution minus the loss incurred. This will be:

= $19,000 - $13,000

= $6,000

Deficiency of $6000

b. Determine the amount distributed to Reynell, assuming Pepper is unable to satisfy the deficiency.

This will be:

= $49,000 - $19000 - $6,000

= $49,000 - $25,000

= $24,000

6 0

3 years ago

A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by upper c equals 0.

Fantom [35]

Answer:

The cost per month is increasing at a rate $365.

Explanation:

Differentiation Formula

$\frac{d}{dx}(x^n)= nx^{n-1}$
$\frac{d}{dx}(a)=0$ [ where a is a constant]
$\frac{d}{dx}(ax^n)=a \frac{d}{dx}(x^n)= anx^{n-1}$

Given that,

A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by

$c=0.2x^2+10,000$ .

Again given that,

the rate of changing production is 13 unit per month

i.e $\frac{dx}{dt}=13$

To find the cost per month, we need to find out the value $\frac{dc}{dt}$ when production is changing at the rate 13 units per month and the production is 70 units.