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Marat540 [252]
3 years ago
10

angston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary w

idely in risk, and Langston evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk projects at 12%. The company is considering the following projects: Project Risk Expected Return A High 15% B Average 12% C High 11% D Low 9% E
Business
1 answer:
masya89 [10]3 years ago
4 0

Answer:

The correct answer is project A, B and D.

Explanation:

According to the given scenario, the given data are as follows:

Low risk WACC project = 8%

Average risk WACC project = 10%

High risk WACC project = 12%

As the company always prefer the projects that exceeds the WACC projects.

So,

  • Project A has 15% which exceeds the high risk WACC project.
  • Project B has 12% which exceeds the average risk WACC project
  • Project C has 11% which does not exceeds the high risk WACC project, hence it is not the correct answer.
  • Project D has 9% which exceeds the low risk WACC project.
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A European dairy that is famous for its rich ice creams has introduced basil-, tomato-, fennel-, and oregano-flavored ice creams
V125BC [204]

Answer:

The survey would have happened during the stage of idea screening

Explanation:

The idea screening process involves comparing and contrasting  potential new  products in order to determine which of the ideas are a perfect fit for the business giving its  current resources, strengths , opportunities ,threats or limitations of the business.

At this stage of product development,the over-aching aim is to pick the products could be best invested that yield positive in a short while rather picking all available options that might drain the resources available and not yield commensurate returns.

5 0
3 years ago
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Under what circumstance would agency conflict be most likely to increase? When owners are very close to the business. When owner
IRINA_888 [86]

Answer:

When owners are separated from the business

Explanation:

Agency conflict arises when ownership is separated from management and management have to take decision to maximize wealth of owner instead of themselves.

Hence when owners are separated from the business is the correct answer.

7 0
3 years ago
Loggers are much likely to supply wood to the market if property rights are enforced. In the presence of market failures, public
alekssr [168]

Answer:

much <em>more </em>likely;

There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars. - <em>Market power</em>

A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. - <em>Externality</em>

Explanation:

<u>Property rights</u> are an incentive for individuals to create goods that are needed on the market. In other words, when a discrepancy between demand and supply occurs on a specific market, entities, businesses or individuals that create the goods are motivated to meet market needs through enforced property rights.

On the other hand, when there is a lack of property rights that regulate the market, <em>market failures</em> occur. Two common types of market failures include <em>market power</em> and <em>externalities</em>.

The car dealership example shows <u>market power</u> in practice, as the reigning company can dictate car prices.

The second example shows an externality, as there is evident influence (cost or benefit) on the third party, which they cannot change. People are affected (negatively) by smoke they did not create.

5 0
3 years ago
Global information systems pose challenges because cultural, political, and language diversity magnifies differences in organiza
svp [43]

Answer:

the correct answer is:

Typically, international systems have evolved without a conscious plan. The remedy is to define a small subset of core business processes and focus on building systems to support these processes. Tactically, managers will have to co-opt widely dispersed foreign units to participate in the development and operation of these systems, being careful to maintain overall control.

Explanation:

Companies when crossing national borders also increase the need for information. International organizations that have a centralized management must be aware of what is happening in the world.

Information Systems Directors will be required to have greater involvement in the evolution and operation of technical tasks. Their participation in the company's strategy will increase and they will have to deal with this process, since they will participate in the changes or advances of the business areas. In addition, they will have to face numerous challenges in the coming years, specifically the optimization of ICT processes and the promotion of the use of best practices (ITIL, CMMI ...), the control and application of new collaborative tools, as well as the Infrastructure rationalization. In short, they will lead the leadership in innovation and value creation of the aforementioned new technologies.

8 0
3 years ago
4. Trade policies Tariffs and quotas do which of the following? Benefit domestic producers of the protected good and harm domest
irina [24]

Answer:

Benefit domestic producers of the protected good and harm domestic consumers of the protected good.

Explanation:

Trade policies tariffs and quotas benefit domestic producers of the protected good and harm domestic consumers of the protected good as they're made to pay for the consumption of imported products. Hence, under free trade there are more societal benefits due to the specialization of domestic goods.

Tariffs can reduce both the volume of exports and imports in a country.

In order to generate revenues, domestic government make use of tariffs while quotas do not generate any revenue for them.

5 0
3 years ago
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