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
Gnom [1K]
2 years ago
13

A firm is considering a project that will generate perpetual cash flows of $50,000 per year beginning next year. The project has

the same risk as the firm's overall operations. If the firm's WACC is 12%, and its debt-to-equity ratio is 1.33, what is the most it could pay for the project and still earn its required rate of return
Business
1 answer:
Vesna [10]2 years ago
5 0

Answer:

Present value = $416666.6667 rounded off to $416666.67

Explanation:

To calculate the most the firm could pay for the project, we will need to calculate the present value of the project when discounted at the WACC for the project, which is equal to the WACC for the firm in this case. The cashflows from the project will be perpetual, thus we will use the formula for the present value of perpetuity.

Present value of perpetuity = Cash flow / r

Where,

r is the rate of discount or discount factor which in this case is WACC

Present value = 50000 / 0.12

Present value = $416666.6667 rounded off to $416666.67

You might be interested in
PLEASE HELP ASAP BRAINLIEST TIMED TEST PLZZZZZZZ HELP HURRY React to the quoted statement. Defend your opinion: “My feelings are
vaieri [72.5K]
<h2>Yes I keep my feeling controlled by "Intrapersonal intelligence"</h2>

Explanation:

The term "Intrapersonal" intelligence might be something new but it is one of the soft skill which completely talks about "Personal emotions"

It is highly difficult to manage feelings both which are positive and negative in nature but a person who can control the emotions are the best leaders and most successful person. So a person who possess good "intrapersonal" skills will never yell at anyone or hurt anyone at work and will find other possible ways to solve it or pin point about the mistake.

4 0
3 years ago
• define the market process, the command process, and the traditional process. How does each process deal with the basic questio
kupik [55]

Answer:

Set Objectives. Start with setting marketing objectives. ...

Do Your Research. The market research you do will drive the decisions you make when deciding upon your marketing strategy. ...

Make Decisions. ...

Write It Down. ...

Summary.

4 0
2 years ago
You have just taken over your family’s printing business. It is important to you that the business has a positive impact on your
Nimfa-mama [501]

Answer:

a. Some of your printing processes utilize chemicals that require press operators to wear masks during production.<u> </u><u>Health and safety risks.</u>

Those chemicals present a health and safety risk because a person can get sick if they do not wear the masks.

b. Because of increased profits in the last 5 years, you have been able to increase staffing levels by 25%. <u>Increase employment.</u>

<u></u>

c. The business is a member of the local Chamber of Commerce and supports local community charities. <u>Improve the quality of life</u>

The business supports local charities which shows that it aims to improve the quality of life.

<u></u>

d. The business is the only one in town to offer 48-hour turnaround on printing projects. <u>Offer valuable products</u>

The business is the only one offering this service so it is offering valuable services.

<u></u>

e. The business uses ink that is shipped in bulky, non-recyclable ink containers. <u>Environment damage</u>

Ink is bulky and containers are non-recyclable. This will cause environmental damage.

5 0
3 years ago
Before beginning to compose a successful business message, you need to collect necessary information by conducting informal or f
dybincka [34]

The questions should I  ask myself in order to avoid frustration and inaccurate messages are :

  • How should the receiver respond?
  • How should the receiver respond?
  • What details regarding this subject should the receiver be aware of?
<h2>How can I develop a company message that is effective?</h2>

You must first gather the relevant data by completing either formal or informal research before you can start to write a good business message. Frequently, the data you gather while conducting research aids in the development of your message.

<h2>Which of the following best sums up a message with a long-term impact?</h2>

A message that is highly complicated and has a long-term impact should be delivered verbally." Identify whether the claim is accurate or not. Despite the possibility that audiences will accept imprecise, vague, or conflicting business communications.

Learn more about effective company's message at :

brainly.com/question/14510443?referrer=searchResults

#SPJ4

5 0
2 years ago
Taylor bank lends guarantee company $150,000 on january 1. guarantee company signs a $150,000, 8%, 9-month note. the entry made
Murljashka [212]
We are given
P = $15,000
i = 8% per year
n = 9 months

First we convert the interest to per month
i = 8%/12 = 0.67%

And we solve for the future worth of the note
F = P ( 1 + i)^n
F = 15000 ( 1 + 0.0067)^9
F = $15929.12

The value of the note is $15929.12<span />
6 0
3 years ago
Read 2 more answers
Other questions:
  • a truck costs $35,000 with a residual value of $2000. its service life is five years using the declining balance method at twice
    5·1 answer
  • You determine that a robot welder is malfunctioning on your assembly line because final inspection has revealed a loose connecti
    13·1 answer
  • Beverly Foster is planning for her retirement. She has determined that her car is worth $10,000, her home is worth $150,000, her
    6·1 answer
  • Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take five rights to buy a n
    6·1 answer
  • An investigator conducting a study of a medical device under an ide is required to complete and sign what?
    5·1 answer
  • If the exports (in million $) for the period 2006 through 2010 were $878, $892, $864, $870, and $912, respectively, what are the
    8·1 answer
  • Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores.
    8·1 answer
  • Croulene Corp, an American company, starts its operations in China. Croulene has an inherent disadvantage in China because of it
    12·1 answer
  • In order to be effective control must be
    12·1 answer
  • Prepare journal entries to record the following transactions involving the short-term securities investments of Krum Co., all of
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!