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3 years ago

Which of the following is an objective of capital budgeting?

Business

1 answer:

polet [3.4K]3 years ago

5 0

Answer:

C. To earn a satisfactory return on investment.

Explanation:

The objective of the capital budgeting is that the company should have to do the investment in that thing which should be profitiable. In this, the company have the options i.e. either it selects the better investment or proposal for the enterprise

So as per the given situation, when the return on the investment is earn and it becames satisfactory so this represent the capital budgeting objective

Hence, the option c is correct

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What would be the amount of deposits D, given that the monetary base MB $750 billion, the required reserve rate (r) -0.1, the ex

Thepotemich [5.8K]

Answer:

$574.71 billion.

Explanation:

The formula for calculating amount of deposits is as follows:

$D= \frac{1}{(C/D)+rr+(ER/D)}\times MB$

where,

D = Deposits

rr = required reserve rate

ER/D = excess reserve rate

C/D = non-bank currency to deposits

$D= \frac{1}{(1.2)+0.1+(0.005)}\times 750$

D = 574.712644

D = 574.71

Therefore, the amount of deposits is $574.71 billion.

4 0

3 years ago

Management can make any form of distribution to the firm’s shareholders using the company’s free cash flow (FCF). The underlying

vovikov84 [41]

Answer:

A good use of free cash flow is to Invest in nonoperating assets

Explanation:

Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.

If the underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.

A good use of FCF would be to invest in nonoperating assets such as marketable securities, investments in other companies, etc.)

3 0

3 years ago

Suppose the price of hot wings is $10, the price of beer is $1, and the consumer’s income is $50. In addition, suppose the consu

IgorC [24]

Answer:

a. budget constraint intersects the vertical axis at 25 beers.

Explanation:

A budget constraint shows all the combinations that a consumer might purchase of two given products or services. The total consumption can be represented by a consumption possibilities frontier curve:

originally you could purchase 50 beers or 5 hot wings
then as the price of beer increases to $2, you can only buy 25 beers or 5 hot wings

7 0

3 years ago

PLS HELP!! Complete the following sentence. Making sales is the primary mission of a sales___

Doss [256]

Answer:

Salesman

Explanation:

A Salesman, also called a Sales Representative or Salesperson, sells products or services to businesses or consumers. - JH

4 0

3 years ago

Read 2 more answers

The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.Accounts Debit CreditCash $1

zepelin [54]

Answer:

These can be prepared as shown below:

Explanation:

1. Prepare a statement of stockholder equity for the year ends December 31, 2018, assuming no common stock was issued during 2018.

To do this, the income statement is first prepared by ignoring tax as follows:

Fightin' Blue Hens Corporation

Income Statement

for the year ended December 31, 2018.

Details $

Service Revenue 300,000

Salaries Expense (200,000)

Rent Expense (10,000)

Depreciation Expense (20,000)

Interest Expense (3,000)

Earnings for the year  67,000 

Therefore, we have:

Fightin' Blue Hens Corporation

Statement of Stockholder Equity

for the year ends December 31, 2018

Details $

Common stock 100,000

Retained Earnings 40,000

Earnings for the year 67,000

Stockholder Equity 207,000

2. Prepare a classified balance sheet as of December 31, 2018.

A balance sheet is a balance sheet that have different classifications suchas fixed assets, current assets and liabilities, long-term liabilities, and stockholder equity. This can be prepared as follows:

Fightin' Blue Hens Corporation

Classified Balance Sheet

for the year ends December 31, 2018

Details $ $

Fixed Assets

Equipment 200,000

Accumulated Depreciation (115,000)

Net Fixed Assets 85,000

Current Assets

Cash 10,000

Accounts Receivable 130,000

Prepaid Rent 4,000

Supplies 20,000

Total current assets 164,000

Current Liabilities

Accounts Payable (10,000)

Salaries Payable (9,000)

Interest Payable (3,000)

Working capital 142,000

Long-term Liabilities

Notes Payable (due in two years) (20,000)

Net Total Assets  207,000

Financed by:

Common stock 100,000

Retained Earnings 40,000

Earnings for the year 67,000

Stockholder Equity 207,000

Note: When a balance sheet is accurately prepared, the net total assets and the stockholder equity must be equal as above with both equaling $207,000.

6 0

3 years ago