1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mashcka [7]
2 years ago
6

A key difference between the APV, WACC, and FTE approaches to valuation is: how debt effects are considered; i.e. the target deb

t to value ratio and the level of debt. how the initial investment is treated. how the ratio of equity to debt is determined. how the unlevered cash flows are calculated. whether terminal values are included or not.
Business
1 answer:
Over [174]2 years ago
5 0

Answer: how debt effects are considered; i.e. the target debt to value ratio and the level of debt.

Explanation:

The Weighted Average Cost of Capital (WACC) values a project by using a discount rate that encompasses all the costs of raising capital. It therefore includes the effects of debt financing in that rate.

Adjusted Present Value (APV) on the other hand, takes the net present value of a project assuming it was solely financed by equity and then adds the present value of the benefits of debt financing such as interest tax shields and costs of debt issuance. Debt is therefore not included in the model like WACC and so considers the effects of debt differently.

You might be interested in
The amounts of money you can make on a college savings plan investment is dependent on
Oliga [24]

That would be the market performance of an investment.

4 0
3 years ago
To find out which ads and other marketing strategies are working, many companies ask customers how they _____ about the company
Lyrx [107]

To find out which ads and other marketing strategies are working, many companies ask customers how they have heard about the company or product.

Most businesses ask how you found out about their service/product. By asking this question, they are able to track where their marketing efforts are working and where they are not. If they are advertising in one place and it's not reaching consumers, it may be worthwhile for them to take out advertisements there and move them to another place.

5 0
2 years ago
Architects must consider the availability and cost of ________ when they plan their projects.
barxatty [35]

Answer:

the correct answer is Building materials

Explanation:

Architects must consider the availability and cost of Building materials when they plan their projects.

good luck

6 0
3 years ago
What is one explanation for why this labor supply curve is upward sloping? the opportunity cost of leisure decreases as wages de
san4es73 [151]
I believe the correct answer is the first option. The labor supply curve is upward sloping because the opportunity cost of leisure decreases as wages decrease and the opposite of such is true as well. As one work one hour more, one will have less time for other activities. As the work rate increases in value, then the opportunity cost increases as well.
8 0
3 years ago
Read 2 more answers
Which of the following is a common finding in looking at the statement of cash flows of a declining company?
mario62 [17]

Answer:

These are the options for the question:

a) A negative cash flow from operating activities

b) A negative cash flow from investing activities

c) A significant positive cash flow from financing activities

And this is the correct answer:

a) A negative cash flow from operating activities

Explanation:

Declining companies are characterized by a lack of revenue from regular operating activities.

If cash flow from operating activities is negative, it means that the company is not making enough money to meet its obligations, and that will likely cease to exist in the near future unless big changes happen.

5 0
3 years ago
Other questions:
  • The U.S. preference for __________ economic policies helps to explain why we have a smaller and more limited government than do
    8·1 answer
  • TRUE OR FALSE An acceptance can impose new conditions or change the terms of the original offer.
    5·1 answer
  • Bramble Corp. purchased a delivery truck for $38,800 on January 1, 2019. The truck has an expected salvage value of $1,800, and
    9·1 answer
  • Which of the following statements is most accurate? Select one: a. In process costing, estimating the degree of completion of un
    6·1 answer
  • Continuous improvement:
    14·1 answer
  • Land acquired so it can be resold in the future is listed on the balance sheet as a(n)
    10·1 answer
  • Corey, the chief financial officer of Maurectric Inc., an electronics company, is also an investor in the stockmarket. As the sh
    14·1 answer
  • 10 reasons why kids should have phones Use your own words Explain your reasons
    5·2 answers
  • If you spend $400 on a new phone and it
    13·1 answer
  • g Hondae Inc. purchased equipment on January 1, 2018, at a cost of $320,000. The company estimated a $8,000 salvage value and th
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!