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Charra [1.4K]
3 years ago
11

The unlevered cost of capital is: Group of answer choices the cost of preferred stock for a firm with equal parts debt and equit

y in its capital structure. equal to the profit margin of a firm with some debt in its capital structure. the cost of capital for a firm with no debt in its capital structure. the cost of capital for a firm with no equity in its capital structure. the interest tax shield times earnings before taxes.
Business
1 answer:
Dennis_Churaev [7]3 years ago
5 0

Answer: The cost of capital for a firm with no debt in its capital structure.

Explanation:

Leverage in finance refers to the use of debt. Unlevered capital therefore would refer to capital that is without debt which means that an unlevered cost of capital is one with no debt in its capital structure.

Companies with such a capital structure derive their capital 100% from Equity and as such do not pay interest. This means however, that they will not benefit from the tax shields that interest payments offer.

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The first step in rational decision-making is to Group of answer choices choose a person who could evaluate the decision. choose
mr Goodwill [35]

Answer:

identify the criteria that are important in making the decision.

Explanation:

Rational decision-making is a step-by-step method for choosing the best choice from the options and is carried out on the basis of reasoning, objectivity and examination of any factor before concluding

Therefore according to the above explanation the correct answer is to identify the criteria that are important in making the decision as it is the first step of rational decision making.

7 0
3 years ago
Which of the following is LEAST likely to provide a sustainable competitive advantage?Select one:a. creating an efficient supply
yawa3891 [41]

Answer:

The correct answer is d. lowering price.

Explanation:

Sustainable competitive advantages are company those abilities and traits that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

Lowering price is good stratergy to compete with new competitors comming in the industry. However in long run you have to focus on building  processes that generate value for customers and both internal and external stake holders.

5 0
3 years ago
Bok buys an espresso machine from Coffee Gadgets, which bills him for $100. He writes out a check drawn on Dios Bank, but later,
noname [10]

Answer: d. must stop payment if the bank has a reasonable time to act.

Explanation:

Dios as a bank holds money for it's customers which means that the money is still under the ownership of the customer in question to do as they see fit.

If the customer therefore instructs them to act in a certain way with that money, they will do so provided that it is legal of course.

Bok asks Dios to stop a payment related to his own money and so they must do so if they have enough/reasonable time to do so because as their customer, he is there first priority especially in relation to his own money.

5 0
3 years ago
When business strength is low and industry attractiveness is weak, the recommendation from the GE Stoplight matrix is to ....
Alenkasestr [34]

Answer:

The correct option is (b) harvest or divest

Explanation:

In the case when the strength of the business is low and the attractiveness of the industry is weak so the suggestion is that harvest or digest

Here harvest refer to reducing the investment that made in the business or not to do the new investment in order to decreased the losses

While on the other hand, the divest refer the assets are sold and the same would become the part of an organization

Therefore as per the given scenario, The correct option is (b) harvest or divest

3 0
3 years ago
The internal rate of return of a capital investment Select one:
Semmy [17]

Answer:

E. Answers c and d are correct.

Explanation:

C. Must exceed the cost of capital in order for the firm to accept the investment. Because in case of being lower than the cost of capital would be convenient to invest in something riskless.

D. Is similar to the yield to maturity on a bond. As the calculation of any rate of return is all about the expected cash flow.

5 0
3 years ago
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