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3 years ago

An all-equity firm is considering the following projects:

Business

1 answer:

FromTheMoon [43]3 years ago

4 0

Answer:

Projects Y and Z

b. Projects W and Z

c. Projects W and Y

Explanation:

CAPM equation : Expected return = Risk free rate + Beta x (Expected market return - Risk free rate)

W = 4% + [0.85 x (11% - 4%)] = 9.95%

X = 4% + (0.92 x 7%) = 10.44%

Y = 4% + (1.09 x 7%) = 11.63%

Z = 4% + (1.35 x 7%) = 13.45%

Projects Y and Z have an expected return greater than 11%

b. Projects W and Z should be accepted because its expected return is higher than the IRR

c. Project W would be incorrectly rejected because the expected rate of return is less than the overall cost of capital (i.e. 9.95 is less than 11). But its expected rate of return is greater than the IRR

Y would be incorrectly accepted because its expected rate of return is greater than the overall cost of capital but its expected rate of return is less than the IRR

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The ____ the percentage of an MNC's business conducted by its foreign subsidiaries, the ____ the percentage of a given financial

Xelga [282]

Answer:

greater; greater

Explanation:

The greater the percentage of an MNC's business conducted by its foreign subsidiaries, the greater the percentage of a given financial statement item that is susceptible to translation exposure.

3 0

3 years ago

A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries

laiz [17]

Answer:

a) 32 refrigerators

b) 28.39 approximately 29 refrigerators

Explanation:

Given:

Cost of order, S = $100

H = 20% of 500 = 100

Cost of refrigerator = $500

Annual demand, D = 500

S.d = 10

Lead time, L = 7 days.

a) To find the economic order quantity, Q_opt, let's use the formula:

$Q_opt = \sqrt{\frac{2*D*S}{H}}$

$= \sqrt{\frac{2*500*100}{100}} = 32$

The economic order quantity is 32 refrigerators.

b) The reorder point, R, is calculated as:

R = (d' * L) + ( z * s.d)

Where d' is daily demand which is calculated by dividing annual demand by 365 days.

d' = 500/365 = 1.37

At 97% service probability.

Using the excel function, NORMSINV(0.97) = 1.88.

Therefore z = 1.88

Solving for R, we have:

R = (1.37 * 7) + (1.88 * 10)

= 28.39

≈ 29

If the distributor wants a 97% service probability, the reorder point, R, should be 29 refrigerators

8 0

2 years ago

chegg amazon.com inc. is one of the world’s leading e-commerce companies, with over $386 billion in revenues for the ﬁscal year

MariettaO [177]

With nearly $386 billion in revenues for the fiscal year ending December 31, 2020, Amazon.com.inc. is one of the top e-commerce businesses in the world. Amazon's cost of goods sold for the fiscal year that concluded on December 31, 2020 was $233,307 million.

<h3>What is Amazon.com, Inc.?</h3>

A global American technology business, Amazon.com, Inc., specializes in e-commerce, cloud computing, digital streaming, and artificial intelligence. One of the most valuable brands in the world, it has been called "one of the most significant economic and cultural forces in the globe." Along with Alphabet, Apple, Microsoft, and Meta, it is one of the Big Five American technological firms.

On July 5, 1994, Jeff Bezos launched Amazon from his garage in Bellevue, Washington. It has numerous subsidiaries, including Kuiper Systems (satellite Internet), Amazon Lab126, Zoox (autonomous vehicles), and Amazon Web Services (cloud computing) (computer hardware R&D).

To learn more about amazon visit:

brainly.com/question/28235881

#SPJ4

5 0

1 year ago

Turnbull Co. is considering a project that requires an initial investment of $570,000. The firm will raise the $570,000 in capit

ss7ja [257]

Answer:

WACC = 10.868%

Explanation:

The following data table will show the easiest way to calculate weighted average cost of capital.

Capital components Investment ($) Weight

Debt Capital (Wd) 230,000 230,000 ÷ 570,000 = 0.40

Equity Capital (We) 320,000 320,000 ÷ 570,000 = 0.56

Preference capital (Wp) 20,000 20,000 ÷ 570,000 = 0.04

Total Investment $570,000 1.00

We know,

WACC = [Wd × Kd (1 - T)] + [Wp × kp] + [We × ke]

Given,

Kd (1 - T) = 9.6% × (1 - 0.25) = 7.2%

kp = 10.7%

ke = 13.5%

WACC = [0.40 × 7.2%] + [0.04 × 10.7%] + [0.56 × 13.5%]

or, WACC = 2.88% + 0.428% + 7.56%

Therefore, WACC = 10.868%

8 0

3 years ago

Roddie is 30 years old. He was demoted from his job as a manager at Big Trucks, a company with 10,000 employees. He was replaced

labwork [276]

The option available for Roddie would be "Roddie has no options under ADEA."

To understand this, we need to go through the terms of 'Age Discrimination Policy in Employment Act;'

This Act covers the cases of employees or workers aging either 40 or above who have suffered age-based discrimination.
The people aging under 40 are not covered under this act and hence, the benefits can not be reaped by them in any situation.
This law doesn't allow the process of giving preference to an older employee over the younger to be considered illegal.

Hence, Roddie has no available options under ADEA as he is below 40(in fact only 30 years old) and he cannot claim under ADEA for justice.

Learn more about 'Age Discrimination in Employment Act (ADEA)' here: brainly.com/question/7239617

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3 years ago