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Murrr4er [49]
3 years ago
13

An all-equity firm is considering the following projects:

Business
1 answer:
lakkis [162]3 years ago
8 0

Answer:

A. Compared with the firm's 12 percent cost of capital, Project W has a_______expected return.

  • a. lower

1. Project X has a______expected return.

  • b. lower

2. Project Y has a_______expected return

  • b. higher

3. Project Z has a______expected return.

  • a. higher

B. Project W should be_______.

  • b. rejected

1. Project X should be______.

  • b. rejected

2. Project Y should be_______.

  • a. accepted

3. Project Z should be_______.

  • a. accepted

c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be_______.

  • c. correctly rejected

1. Project X would be______.

  • c. correctly rejected

2. Project Y would be_______.

  • b. correctly accepted

3. Project Z would be________.

  • b. correctly rejected

Explanation:

Project    Beta     IRR        <u> expected return</u>

W             .62      9.2%       = 5% + (0.62 x 7%) = 9.34%

X              .77      10.3 %     = 5% + (0.77 x 7%) = 10.39%

Y            1.27       14.1 %      = 5% + (1.27 x 7%) = 13.89%

Z            1.42       17.0%     = 5% + (1.42 x 7%) = 14.94%

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pshichka [43]

Answer:

Break-even point= 11,500 units

Explanation:

Giving the following information:

Selling price= $20.00 per unit.

Fixed expenses= $63,000 per year.

Break-even point= 9,000 units to break even.

Desired profit= $17,500

First, we need to calculate the unitary variable cost:

Break-even point= fixed costs/ contribution margin

9,000= 63,000 / (20 - unitary variable cost)

9,000*20 - 9,000x= 63,000

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117,000/9,000=x

13= unitary variable cost

Now, we can calculate the number of units:

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Break-even point= (63,000 + 17,500) / (20 - 13)

Break-even point= 11,500 units

3 0
3 years ago
Craigmont Company's direct materials costs are $4,200,000, its direct labor costs total $8,080,000, and its factory overhead cos
USPshnik [31]

Answer:

$12,280,000.

Explanation:

All the direct costs involved in the manufacturing of a product except fixed cost is called prime cost e.g direct material, direct labor etc.

Direct Material = $4,200,000

Direct labor = $8,080,000

Total Prime cost = Direct material + Direct labor = $4,200,000 + $8,080,000 = $12,280,000

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Monopolistic competition is distinguished by the fact that, despite being closely related to one another, the products of various firms are not all the same but rather differ from one another. As numerous businesses compete to sell their products, there is also a component of competition.

Price=Average Total Cost Total Revenue is equal to total cost so there

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Price<ATC                          It means firm is earning Short Run Economic

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8 0
1 year ago
PLEASE HELP! I need to know what to put in the blank
Alborosie

Available Options are:

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C) ordering

D) reordering

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Answer:

Option E. Awareness-building

Explanation:

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Stage 1: A is for Attention

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