Each of the following is a reward of entrepreneurship EXCEPT:

Wilson’s is reviewing a project with an internal rate of return of 13.09 percent and a beta of 1.42. The market risk premium is

maria [59]

Answer:

Accepted and rejected

Explanation:

Since the internal rate of return is 13.09% and the WACC is 12.68%

As we can see that the internal rate of return is higher than the WACC as WACC is considered as the discount rate

So the project should be accepted

And, if CAPM is used

So, the expected rate of return is

If CAPM is used

Risk-free rate of return + Beta × market risk premium

= 2.9% + 1.42 × 8.1%

= 2.9% + 11.502%

= 14.40%

And, The Internal rate of return = 13.09%

Since the internal rate of return is less than the expected rate of return therefore the project should be rejected

5 0

3 years ago

Beginning Work in Process Inventory was 10,000 units that were 20% complete and 40,000 units started, with ending Work in Proces

lesya692 [45]

Answer:

Material EUP = 5000

Conversion Costs EUP = 51,200

Explanation:

Under weighted average method

Beginning Work in Process Inventory 10,000

Units Started = 40,000

Units to account for 50,000

In the Work In Process for Conversion Costs

Beginning Work In Process (10,000*20 %) = 2000 were complete

Work done on beginning inventory = 10,000- 2,000= 8,000

Units Started = 40,000

Add Ending Inventory (8000*40%) 3200

Units to account for = 51,200

5 0

3 years ago

Assume that the required reserve ratio is 20 percent. If the Federal Reserve buys $80 million in government securities from comm

Anni [7]

Answer: increase by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million

Explanation:

Based on the information given in the question, the money multiplier will be calculated thus:

Money multiplier = 1/Required reserve ratio

where,

Required reserve ratio = 20%

Money Multiplier will now be:

= 1/0.20

= 5

Therefore, the maximum money-lending potential will be:

= $80 million × 5

= $400 million

Therefore, the money supply will by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million

5 0

2 years ago

In order to qualify for Long Term Care insurance, a person must be unable to perform how many of the basic activities of daily l

Marysya12 [62]

B ) at least 2 activities ~ apex

4 0

3 years ago

Read 2 more answers

Jim is researching different sources to fund his college education. Jim is torn between a federal loan and a private loan. With

Colt1911 [192]

The right answer for the question that is being asked and shown above is that: "A. Jim should choose the federal loan since he will not have to pay interest if he attends a public university." the loan should Jim choose is that he should choose the federal loan since he will not have to pay interest if he attends a public university.

3 0

3 years ago