1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ser-zykov [4K]
3 years ago
15

Vanguard has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary widel

y in risk, and Vanguard evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk projects at 12%. The company is considering the following projects:Col1 Project A B C DCol2 Risk High Average High Low Col3 Expected Return 15% 12% 11% 9%Which set of projects would maximize shareholder wealth?
Business
1 answer:
Svetradugi [14.3K]3 years ago
8 0

Answer:

The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.

Explanation:

Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).

As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.

On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.

You might be interested in
There are two ratios which are used to measure airline performance. one measures efficiency while the other measures equipment u
den301095 [7]

Operating ratio-measures the portion of operating revenue that goes to operating expenses, only revenue and expenses generated from passenger and freight transportation are considered

(operating expenses/operating revenue)*100

load factor-measures the percentage of a plane's capacity that is utilized,

(number of passengers/total number of seats)*100

All pilots should be interested in weight and balance control. The two changeable factors that can alter an aircraft's total weight and CG location are loading and fuel management, both of which are under the control of the pilot.

The owner or operator of the aircraft should guarantee that the pilots have access to current information and that the proper entries are made in the records when repairs or modifications are completed. The CG is altered as a result of equipment removal or addition.

To learn more about Airlines load here

brainly.com/question/13318528

#SPJ4

6 0
2 years ago
If a person receives a paycheck for $600.00 and the government takes $200.00 in income taxes, it is a result of which amendment?
Ket [755]

Answer:

Sixteenth (16th)

Explanation:

The sixteenth amendment in the United States Constitution provides the right to Congress whereby, it can levy the taxes in the form of income tax on the amount of income, without segregating it in any manner, that is in no manner it is apportioned in relation to any number or weightage of the population concerned of the state.

This amendment thereby provides for straight tax as discussed in the example.

3 0
3 years ago
Globalization is the process of the world becoming more connected. Like any process that involves economic choices, it has posit
Gnom [1K]

Answer:

Increased consumption leads to an increase in the production of goods, which in turn puts stress on the environment. Globalization causes rise in the amount of fuel that is consumed in transporting these products has led to an increase in the pollution levels in the environment.

Seventy percent of Chinese households burn coal or biomass for cooking and heating, which contaminates indoor air. Adverse effects of combustion-related air pollution include reduced fetal and child growth, pulmonary disease including asthma, developmental impairment, and increased risk of cancer.

Coal is the leading culprit of air pollution in China. 75% of the premature deaths are caused by the 152 coal-fired power plants in Hebei Province. Air pollution will remain a serious problem in China as long as coal continues to be the country's major energy source.

Explanation:

6 0
3 years ago
When A customer returns goods to the business
AysviL [449]

Answer:

If there's no options to select it would be a refund which that customer can exchange that item for a different or identical item or they can get store credit or money back

Explanation:

5 0
3 years ago
A project risk has a 30% chance of occurring. If it does occur, it will change the project budget by 10%. What is the risk score
Setler79 [48]

When the project risk is 30%, and its occurrence leads to a change in the project budget by around 10%, then the risk score is 0.03.

<h3>What is a risk score?</h3>

The result of multiplication of the risk impact on the budget by the probability of occurrence of the risk, is known as the risk score. Using the given information, it can be calculated as,

\rm Risk\ Score\ = Project\ Risk\ x\ Impact\ on\ Project\ Budget\\\\\rm Risk\ Score\ = 0.30\ x\ 0.10\\\\\rm Risk\ Score\ = 0.03

Hence, option B holds true regarding the risk score. The complete question is added in the image for reference.

Learn more about risk score here:

brainly.com/question/27181888

#SPJ1

7 0
2 years ago
Other questions:
  • Voyager Corporation has developed the following cost formula for its maintenance cost: Y = $300 + $2X, where X = the number of d
    7·1 answer
  • A small business owner visits his bank to ask for a loan. The owner states that she can repay a loan at $2,500 per month for the
    10·1 answer
  • Workers in contributing to the common good is
    7·1 answer
  • ECNAL Corp. manufactures bicycle parts. One of its new products, the Slipstream tire, is advertised to be 20 percent stronger th
    12·1 answer
  • On November 15, Meier Company received $3,000 cash from a customer for services that were performed on November 1. According to
    10·1 answer
  • Highland Company's standard cost is $250,000. The allowable deviation is ±10%. Its actual costs for six months are as follows Ja
    5·1 answer
  • 2. For the fiscal year of 2017, Excel Sports Inc. had a net income of $255,000 and paid out $51,000 as common dividend. Meanwhil
    13·1 answer
  • Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the cond
    12·1 answer
  • If net operating income is $83,000, average operating assets are $415,000, and the minimum required rate of return is 13%, what
    5·1 answer
  • 15) You are
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!