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3 years ago

Which of the following statements describes the cost of capital?

Business

1 answer:

professor190 [17]3 years ago

8 0

Answer: The minimum rate of return on investments.

Explanation:

The cost of capital simply refers to the particular rate of return that a certain company expects to get from a certain investment that it does.

The cost of capital is the minimum rate of return which must be earned by a certain business before the generation of value.

The cost of capital therefore is the minimum rate of return on investments. It is the return which a company is expected to pay both the creditors and also the investors.

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Union Local School District has bonds outstanding with a coupon rate of 4.3 percent paid semiannually and 18 years to maturity.

9966 [12]

Answer:

$11,204.25

Explanation:

For computing the dollar price of each bond we need to applied the present value formula which is to be shown in the attachment below:

Provided that

Future value = $10,000

Rate of interest = 3.4% ÷ 2 = 1.7%

NPER = 18 years × 2 = 36 years

PMT = $10,000 × 4.3% ÷ 2 = $215

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After applying the above formula, the dollar price of the bond is $11,204.25

4 0

3 years ago

4. how do financial and management accounting relate to each other?

Monica [59]

In general, financial accounting refers to the aggregation of accounting information into financial statements, while managerial accounting refers to the internal processes used to account for business transactions. I hope this helped

6 0

2 years ago

According to Zane, it was difficult for him to empower his employees and not micromanage; however, he realized that being resp

Nutka1998 [239]

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6 0

4 years ago

A company headquartered in Vancouver, British Columbia, is building a pipeline in Russia. The invoice amount is due in 90 days a

Alinara [238K]

Answer:

C. Sell 28,000,000 rubles

Explanation:

By doing so, the company will <u>immediately receive</u> the amount equivalent in Canadian Dollars by selling 28 million rubles in forward and after 90 days when the invoice amount (28 million rubbles) is received from building the pipeline, will be used to netting of the forward contract.

In this way, company can hedge the currency exposure, and reduce the risk which can be generated from currency volatility.

5 0

3 years ago

Heidi purchases an original work by one of her favorite sculptors from an art dealer for $8,000. After three months of waiting f

Dominik [7]

The remedy that Heidi has in this scenario is <u>D. Heidi is entitled</u> to recover the purchase price of the sculpture, as well as the money she spent to have the sculpture appraised.

<h3>What are the remedies for breach of contract?</h3>

Some of the legal remedies available to a party whose contract is <u>breached</u> are:

Compensatory damages
Specific performance
Contract rescission
Restitution.

<h3>Answer Options:</h3>

A. Heidi has no recourse in this scenario, because she accepted delivery of a non-conforming good.

B. Heidi may sue the art dealer for specific performance and require the dealer to secure the original sculpture in any way possible.

C. Heidi is only entitled to recover the money that she paid for the sculpture.

D. Heidi is entitled to recover the purchase price of the sculpture, as well as the money she spent to have the sculpture appraised.

Thus, based on the scenario, Heidi is entitled to Compensatory damages, which award the plaintiff the monetary value of what she either lost or incurred because of the breach.

Learn more about Compensatory Damages at brainly.com/question/4395083

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8 0

3 years ago