<span>Joint ventures are modern techniques which are usually used to keep up with technological advancements and compete in the global economy. Joint ventures are composed of two or more parties that co-own a specific business, shares business risks and profits eventually together.</span>
Answer: D-its inventory level is too high
Explanation:
Inventory turnover is a ratio that shows a company how efficient it sells its products. A high turnover means that the company is generating sales efficiently for inventory, while a low turnover means not generating efficient sales for inventory.
Also a low quick Ratio means when a company does not have enough current assets and lacks inventory in order to cover it's short term debt
Since, Okra Corp. has a low inventory turnover, a high current ratio, and an average quick ratio, it will generate inventory that is too high leading to poor sales.
Answer:
6.88%
Explanation:
Weighted Average Cost of Capital (WACC) = [After Tax Cost of Debt * Weight of Debt] + [Cost of equity * Weight of Equity]
WACC = [3.40%*0.39] + [10.80%*0.69)
WACC = [0.034*0.39] + [0.108*0.69)
WACC = 0.01326 + 0.07452
WACC = 0.08778
WACC = 8.78%
The required return for the new project = Weighted Average Cost of Capital – Risk Adjustment Factor
The required return for the new project = 8.78% - 1.90%
The required return for the new project = 6.88%
