Answer:
A Division A project with an 11%
Explanation:
The project should be analize with the cost of capital for each division, as it is a know values it is a better choise than WACC.
For that reason, going for project of less than 14% (13% or 11%) in division b will be destroying capital
While the project in Division A for 11% means it will generate economic value to the firm as the cost is 10% and return 11%
Answer
The answer and procedures of the exercise are attached in the image provided below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
False
Explanation:
history has documented that the Great Recession occurs between December 2007 to June of 2009. The recession lead to losses in countries such as the output went down and unemployment went up. The causes of the Great Recession are Rising Inequality, Loosening of bank lending rules and rise of mortgage securitization.
Technological advance is hand in hand with capital formation. Productivity growth rates is of utmost importance due to the fact that productivity growth rates have a big impact on future economic growth and development of the new economy was due to advances in information technology.
