Answer:
The correct answer is D. Is the return investors require on the total assets of the firm.
Explanation:
The Weighted Average Capital Cost (WACC) is a financial measure, which has the purpose of encompassing in a single figure expressed in percentage terms, the cost of the different sources of financing that a company will use to fund a specific project.
To calculate the WACC, it is necessary to know the amounts, interest rates and tax effects of each of the selected sources of financing, so it is worth taking the time to analyze different combinations of these sources and take the one that provides the lower figure
.
Comparatively, without going into the detail of the project evaluation, "the WACC must be less than the profitability of the project to be funded" or expressed in another order, "the project performance must be greater than the WACC."
Answer: Correct. When there is an increase in supply and an increase in demand, the new equilibrium quantity increases but whether the equilibrium price increases or decreases is unknown.
Explanation:
When the demand for the shoes increased, it had the effect of shifting the demand curve to the right. At the same time, with six more firms coming into the market, the supply increased as well which had the effect of shifting the supply curve right as well.
The new equilibrium as a result of these movements will see the quantity increase. However, due to the shift of both the supply and the demand curve in the same direction, it is uncertain if the price will change or not.
The general rule is that if the rise in supply is more than rise in demand then the price will decrease. If they rise by the same amount then price will remain the same. It shows therefore that if both supply and demand rise at the same time, the effect on equilibrium price is unknown.
Answer:
62,000 units
Explanation:
Calculation to determine how many units did the Forming Department start and complete in the current month
Total units completed and transferred 84,000 units
Less Inventory at the beginning of this month 22,000 units
Units Forming Department started and completed in the current month 62,000 units
(84,000 units-22,000 units)
Therefore The number of units that the Forming Department started and completed in the current month is 62,000 units
Answer: Keep your account open and you will earn more on Interest you've already earned
Explanation:
Since Tom's investment account at his bank has a compounding interest, the best advice that'll be offered to Tom is to keep the account open and he will earn more on Interest than what he has already earned.
It should be noted that compound interest makes ones money grow faster. The reason for this is due to the fact that the interest is calculated based on the accumulated interest that the individual has earned over time and the original principal.
Therefore, it isn't advisable for Tom to withdraw his money or ask the bank to compound the interest less frequently but rather, he should keep the account open as he'll earn more interest.
