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Rzqust [24]
3 years ago
14

Purple Lemon Fruit Company has two divisions: one is very risky, and the other exhibits significantly less risk. The company use

s its investors’ overall required rate of return to evaluate its investment projects. It is most likely that the firm will become:
Business
1 answer:
lorasvet [3.4K]3 years ago
7 0

Answer: b. Riskier over time, and its value will decrease

Explanation:

Because the company is using the investor's required rate of return instead of one that takes into account the riskiness of the two division, you find that risk is not being adequately accounted for.

This would lead to a situation where the company becomes riskier because it is not accounting for its risk properly. With higher risk, the company will be unable to seek funding easily which would lead to lower investments being undertaken and an overall decrease in company value.

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Which is bigger 100,000 or .000157
Fudgin [204]
100,000? because .000157 is a decimal, right?
7 0
4 years ago
Read 2 more answers
Observe the Sales Budget and determine which primary responsibility the managerial accountant uses todetermine which quarter gen
pantera1 [17]

Answer:

"Directing" seems to be the right response.

Explanation:

  • Directing seems to be the major concern of the financial analyst to ascertain whether the significant proportion obtained that much sales figures for every unit cost of production throughout addition to changing the marketing campaign.
  • Strategy formulation, trying to organize, staff numbers would not have any significance if the management function doesn't take place.

Therefore the method above is the right one.

4 0
3 years ago
When several alternative investment proposals of the same amount are being considered, the one with the largest net present valu
Likurg_2 [28]

Answer:

The answer is c. present value index

Explanation:

Present value index is the ratio decided by dividing net present value of the project by its require initial net cash outflows.

Once having constraint on selecting investment with positive NPV to be made due to lack of fund, a firm's usually use Present value index for further decision making.

The investment with higher present value index shows that it generates more net cash flow or in other words, more efficient and requires less initial cash outflow, and thus usually be chosen over the other ones with lower present value index.

4 0
3 years ago
Khadimally, Incorporated, expects sales of $763,500 next year. The net profit margin is 5.3 percent and the firm has a dividend
Nutka1998 [239]

Based on the expected sales, net profit margin, and dividend payout ratio, the projected increase in retained earnings for Khadimally Inc, is $33,181.71.

<h3>What is the projected increase in retained earnings?</h3>

First find the expected profit:

= Sales x Net profit margin

= 763,500 x 5.3%

= $40,465.50

The projected increase is:

= 40,465.50 x (1 - 18%)

= $33,181.71

Find out more on retained earnings at brainly.com/question/25998979.

3 0
2 years ago
Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $8,000 ava
pochemuha

Answer: $22,200.72

Explanation:

Given the following :

Amount Pete Morton wants to be able to withdraw each period = $8000

Number of periods = 3

Interest rate on deposit = 4%

The amount Pete must deposit at the beginning of his study to be eligible is the product of the payment per period and the present value of annuity factor.

From the present value of annuity factor table ; the factor obtained for a 3 years period at 4 % Interest rate is 2.77509

Hence,

$8000 × 2.77509 = $22,200.72

4 0
3 years ago
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