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lara [203]
3 years ago
14

A company is trying to decide between two independent projects. Each project has a cost of capital of 12%. Project A has an IRR

of 11.4%. Project B has an IRR of 11.1%. Which project should the company choose if the goal of the firm is to maximize shareholder wealth
Business
1 answer:
Rina8888 [55]3 years ago
6 0

Answer:

Neither project should be chosen

Explanation:

Given that

Each project cost of capital is 12%

The IRR of project A is 11.4%

And, the IRR of project B is 11.1%

As we can see that the cost of capital of each project with their internal rate of return so no project should be selected

Therefore the above statement represent an answer

The same should be relevant

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Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2018. Du
Kruka [31]

Answer:

$660,000

Explanation:

The computation of the equity investment is shown below:

= (Common stock balance) + (Earnings × purchased shares ÷ Total outstanding shares) - (dividend × purchased shares ÷ Total outstanding shares)

= ($600,000) + ($400,000 × 200 shares ÷ 1,000 shares) - ($1,00,000 × 200 shares ÷ 1,000 shares)

= $600,000 + $8,0000 - $20,000

=$660,000

5 0
3 years ago
Which of the following helps determine something's value?
Svetlanka [38]

Answer:

D. Both A and C

Explanation:

Items that are more useful and/or more rare, result in higher prices (and if both are true, even higher prices). If an item is rare but useless, the price would be lower. If an item is useful and not rare (think batteries or paper towels) the price lowers.

8 0
3 years ago
A statewide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing a
STatiana [176]

Answer:

The correct answer is c. economies of scale.

Explanation:

The situation in which a company reduces its production expenses by expanding is called economy of scale. It is a situation in which the more it occurs, the cost that the company has to manufacture a product is lower.

There is a greater benefit for every extra unit we produce. This reduction in the cost of unit manufacturing is not reduced because the price of raw materials goes down, but to take advantage of a material that we have already bought and in which we invested money in the past.

Therefore, it occurs especially in situations in which the company buys more facilities. If we buy a machinery, the way to take advantage of it is to produce more since it is the way that we get a greater benefit, by taking advantage of the same machinery to produce more products, the unit cost of each product is lower. And we will get more benefit the more we produce. This benefit will be greater since we will not have to increase manufacturing costs since we have already had it before.

3 0
4 years ago
If you beat the market with inside information, you have violated the concept of ___ form efficiency.
Sergio039 [100]

If you beat the market with inside information, you have violated the concept of strong form efficiency.

Strong form efficiency refers to a market in which stock prices fully and fairly reflect not only all public and all historical information but also all private information (inside information).

Strong Form Efficiency is the most rigorous version of EMH (Efficient Market Hypothesis) investment theory, stating that all market information, public or private, is factored into stock prices.

A stronger version of the Efficient Markets Hypothesis states that all published and unpublished information is fully reflected in the current stock price and that there is no information available to investors. . market advantage.

Learn more about strong form efficiency here: brainly.com/question/13405657

#SPJ4

7 0
1 year ago
In social media, negative comments and complaints can illuminate unknown brand flaws.
marysya [2.9K]

Yes it is true that in social media, negative comments and complaints can illuminate unknown brand flaws.​  <span>Social media it is any tool or service that uses the Internet to facilitate conversations, offer more one-to-one ways to meet consumers. the process of knowing and assessing what is being said about a company, individual, product, or brand; Negative comments and complaints are of particular importance, both because they can illuminate unknown brand flaws is Social media monitoring. </span>

7 0
4 years ago
Read 2 more answers
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