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Alik [6]
3 years ago
7

If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what w

ould happen to the company overtime?
Business
1 answer:
jolli1 [7]3 years ago
5 0

Answer:

Explanation:

If a company(Marriott in this case) uses a single hurdle rate to decide whether an investment should be undertaken or not, some projects that need to be accepted would end up being rejected and vice versa. For example,

if Marriott's hurdle rate is 10% and it's evaluating

project A with a 15% cost of capital &

project B with a 6% cost of capital .

Evaluation:

Project A would probably lead to a negative NPV because the cost of capital is higher (meaning it is riskier than the firm) hence could be rejected, but using the company hurdle rate of 10% to evaluate it could make its NPV positive. This would ignore the actual additional risk of the project.

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the legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond ______. this
kozerog [31]

Answer:

Bond indenture

hope it's correct

3 0
2 years ago
The equilibrium exchange rate between two currencies is determined by the supply and demand in the, traded goods markets. stock
Ivahew [28]

Answer:

the equilibrium exchange rate between 2 currencies is determined by the supply and demand in the money market

Explanation:

equilibrium exchange rate indicates that the price of exchanging 2 currencies will be stable. equilibrium exchange rate is exchange rate at which the demand for a currency & the supply for the same currency are the same.

7 0
3 years ago
Marion Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock
statuscvo [17]

Answer:

$40,000

Explanation:

Holders of preferred stocks are given preference in terms of dividend distribution. However, the amount of dividend that they will share in the $65,000 dividends declared by the board of directors is only limited to 5% of the total par value (5,000 shares x $100 = $500,000) of preferred stocks, which in this case is only $25,000 ($500,000 x 5%). After deducting the dividends for preferred stocks, the remaining dividends of $40,000 ($65,000 - $25,000) will be distributed to holders of common stocks.

8 0
3 years ago
If your credit reports show different scores, what should you do?
Thepotemich [5.8K]

Different reporting agencies have different methods of measuring your score. They all take in to account how much debt you have, your payment history, how long you've had the accounts, and other factors. The importance of each can change slightly between reports so small differences are not a problem or something you should worry about.

However, if there are large differences in scores you need to research the factors and see where the difference is. One score may show a late payment from 10 years ago while another score will only look 7 years back. It is important to understand the factors that go into your score as well as which parts apply to you.

4 0
3 years ago
Wesley, who is single, listed his personal residence with a real estate agent on
love history [14]
He would most likely listed his personal residence on the price that is higher compared to the market value.
In general, single people bought real estate for investment purposes (becuase it is less likely they live in  the spacious room alone). So, these people tend to listed the price after considering the profit and the comission that will given to the agent.
3 0
3 years ago
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