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
elena55 [62]
3 years ago
10

Lancashire Railway Company (LRC) has two divisions, L and H. Division L is the company’s low-risk division and would have a weig

hted average cost of capital of 8% if it was operated as an independent company. Division H is the company’s high-risk division and would have a weighted average cost of capital of 14% if it was operated as an independent company. Because the two divisions are the same size, the company has a composite weighted average cost of capital of 11%. Division H is considering a project with an expected return of 12%. Should Lancashire Railway Company (LRC) accept or reject the project?
Business
1 answer:
Aleks [24]3 years ago
4 0

Answer:

Lancashire Railway Company (LRC)

Lancashire Railway Company (LRC) should reject the project.  The basis for rejecting Division H's project is that its return (12%) is less than the risk-based cost of capital for the division (14%).

Explanation:

a) Data:

Division L's weighted-average cost of capital = 8%

Division H's weighted-average cost of capital = 14%

Weight of Division L = 50%

Weight of Division H = 50%

Company composite weighted average cost of capital = 11% (8% * 50%) + (14% * 50%)

Expected return from a proposed project for Division H = 12%

You might be interested in
Rebecca Siddoway own and operate Country Candies. Siddoway specializes in making rich, creamy toffees that she packages in attra
Black_prince [1.1K]

The advantage to Siddoway if she decides to incorporate her business is Corporations have an enhanced ability to attract financing.

A Corporations is an organization (usually a group of people or a legal entity) authorized by the State to act as a single entity and legally recognized as such for a specific purpose. Early incorporated entities were established by charter. Most jurisdictions now permit the formation of new companies by registration.

The company is managed and supervised by its directors and officers. Directors are appointed by shareholders and are responsible for the overall management and corporate governance of the company. The directors appoint officers who are responsible for the day-to-day management and operations of the company.

A Corporations company consists of shareholders, a board of directors and officers. When incorporating a company, owners and managers must be organized and given responsibilities and rights according to the rules laid down in the state corporate law.

Learn more about Corporations brainly.com/question/13551671

#SPJ1

7 0
2 years ago
Testing conclusions review the typical benefits of physical capital described in section 1. give specific examples of how the fi
Ronch [10]
- he invention of railroads will reduce the amount of time and capital compared to having to buy supplies to feed horses and drivers in delivering goods.
- The trains also allow companies to deliver products on larger amount compared to using carriage
- Delivering with trains will decrease the likelihood of agricultural products in becoming rotten and unsellable.
3 0
4 years ago
​Bradley's Copiers sells and repairs photocopy machines. The manager needs weekly forecasts of service calls so that he can sche
nadezda [96]

The question is incomplete. The complete question is :

​Bradley's Copiers sells and repairs photocopy machines. The manager needs weekly forecasts of service calls so that he can schedule service personnel. Use the actual demand in the first period for the forecast for the first week so error measurement begins in the second week. The manager uses exponential smoothing with α ​= 0.1 . Forecast the number of calls for week​ 6, which is next week. Week Actual Service Calls 1 2 3 4 5 The forecast for week 6 is ___ service calls. ​(Enter your response rounded to two decimal​ places.)

Solution :

It is given that :

The manager of Bradley's Copiers needs weekly forecast of the service calls so that the manager can schedule service personnel.

Using the \text{actual demand} for the 1st \text{period for the forecast} for the 1st week so as the error measurement begins in the second week.

The exponential soothing, α ​= 0.1

Week       Actual service calls     Forecast

1                    28                                 28

2                   34                             (28 + 0.1 x (28-28))  = 28

3.                  38                             (28 + 0.1 x (34-28))  = 28.60

4.                  27                             (28.60 + 0.1 x (38-28.60))  = 29.54

5.                  25                             (29.54 + 0.1 x (27-29.54))  = 29.29

6                                                    (29.29 + 0.1 x (25-29.29))  = 28.86

Therefore, the forecast for the week 6 = 28.86

5 0
3 years ago
According to our records, the account "2UgLy" was removed for breaking many of our guidelines. This includes posting spam/unhelp
BigorU [14]

Answer:

BTW almost everyone ch.ats in the comments, and some people also plagiarize not just that person FYI

8 0
3 years ago
7. Which of the following characteristics should exist to
algol13
I think the answer is C but i could be wrong
4 0
3 years ago
Other questions:
  • Yzer Inc. asked for volunteers from its employees to help with yard work on its premises prior to a grand reopening. Barton Rodr
    10·1 answer
  • C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who cha
    5·1 answer
  • Which one of the following is not a method used by companies to accelerate cash receipts? Offering discounts for early payment A
    14·1 answer
  • The purpose of advertising is _____. to convince consumers that they can benefit from a product or service to entertain consumer
    7·1 answer
  • Comcast is advertising a new paperless statement program. With a few clicks of the mouse, you can now get your statements, pay i
    9·2 answers
  • Problem 1: G. Rifkin is considering investing some or all of a $60,000 inheritance. He looks at a one year cirtificate of deposi
    12·1 answer
  • Read the following descriptions and identify the type of risk or term being described:
    9·1 answer
  • Which statement best explains why reporters should use mostly primary sources?
    14·1 answer
  • Question 1
    15·1 answer
  • One of the reasons service failures need to be addressed quickly is to: increase empowerment zones. avoid a situational ethics c
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!