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3 years ago

The minimum acceptable expected rate of return on a project of a specific risk is the:________

Business

1 answer:

anzhelika [568]3 years ago

5 0

Answer: A. project cost of capital.

Explanation:

The project cost of capital is the minimum expected rate of project given the type of risk that is attached to it.

When a project is of a certain risk, the company will need a certain rate of return to compensate it for that risk.

This rate is the cost of capital and it is usually based on the company's Weighted Average Cost of Capital (WACC) which measure the cost the company incurs when using equity and debt to raise capital.

The project cost of capital will be a rate that compensates the company enough to enable it compensate its capital providers.

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Do you think most employers are serious about the development of their employees or are they only concerned with productivity?

Mandarinka [93]

Answer:

Productivity is the phenomena of the world economies. It is important for the development and growth.

Explanation:

There are many international and national organization that take care about their employees growth. But many of organization are there which is only think about the productivity not about their employees. The industrial organization psychology worked on this concepts. Many research has been done just because to find out about the employees condition and productivity in an organization.

It is very important for employers if they think about the mental, physical health of their employees it affects the productivity. If employees are satisfied with the environment and policy of a company then productivity will also increase side by side.

3 0

3 years ago

GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equi

AVprozaik [17]

Answer:

12.085 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt

Remember to use the after tax cost of debt :

after tax cost of debt = interest x ( 1 - tax rate)

= 8.00 % x (1 - 0.35)

= 5.20 %

therefore,

WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55

= 12.085 %

thus

the firm's WACC given a tax rate of 35 percent is 12.085 %

6 0

3 years ago

"Harold and Maude are married and live in a common-law state. Neither has made any taxable gifts and Maude owns (holds title to)

jeyben [28]

Answer:

$5528000

Explanation:

Solution

Given that:

Now,

The 2018 estate tax exemption 11180000$ above that the estate inherited are taxed at 40%.

So,

25000000-11180000 = taxable estate 13820000$

The estate tax due= 13820000*40%

= 5528000$

Note: This is reference from Exhibit 25-1 and Exhibit 25-2.

8 0

3 years ago

Vaughn Manufacturing purchased machinery for $980000 on January 1, 2017. Straight-line depreciation has been recorded based on a

Tresset [83]

Answer:

selling price= $199,633

Explanation:

First, we need to calculate the book value at the moment of the sale:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (980,000 - 56,500) / 5

Annual depreciation= $184,700

Accumulated depreciation= (4*184,700) + (184,700/12)*4

Accumulated depreciation= $800,367

Book value on May 1st:

Book value= purchase price - accumulated depreciation

Book value= 980,000 - 800,367

Book value= $179,633

Now, if the company makes a profit, the selling price was higher than the book value:

Gain= selling price - book value

20,000= selling price - 179,633

selling price= $199,633

4 0

3 years ago

What is the difference between birthrate and death rate

Schach [20]

Birthrate is the number of births while deaerate is the number of deaths

4 0

3 years ago