Which one of the following statements is true about calculating a WACC?
a. When using the DCF model to calculate the required rate of return on equity, g used in the calculation should be the expected growth rate in the S&P 500.
b. When using the CAPM to calculate the required return on common stock, a market risk premium equal to the risk-free rate divided by the most recent year's average return on the S&P 500 should be used.
c. In a rising interest rate environment, the book value of long-term debt will tend to be greater than its market value.
d. If flotation costs are ignored, then the calculated WACC will be too high and profitable projects will be overlooked.
e. The book value of equity can be used when calculating the capital structure weights as long as it is adjusted for the average premium or discount of the long-term bond prices.
Answers
The correct statement about calculating a Weighted Average Cost of Capital (WACC) is: d. If flotation costs are ignored, then the calculated WACC will be too high and profitable projects will be overlooked.
This statement is true because flotation costs, which are the costs associated with issuing new securities, such as fees for underwriting and selling the securities, should be considered when calculating the WACC. Ignoring these costs would result in an overestimation of the WACC, leading to a higher required rate of return. As a result, profitable projects may appear less attractive or potentially be overlooked due to the inflated cost of capital.
The other statements (a, b, c, e) are not accurate or do not relate to the calculation of WACC.
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Related Questions
Barbara and the bank signed a contract in which they agreed that the bank would loan $100,000.00 to Barbara to buy a car. She would then repay the loan by making monthly payments of $2,500.00 for 50 months. After 2 years of Barbara's making payments, she and the bank agreed that Barbara could sell her car to Dorothy who agreed to make all of the remaining payments which the bank accepted. This is an example of: A. A novation. B. An accord and satisfaction. C. A void contract. D. A voidable contract.
Answers
Answer:
Option A
Explanation:
A Novation is a form of contract in which the original contract is substituted by a replacement contract where by the new party agrees to accept all the debts to be paid as a part of the original contract.
In other way the original contracting party give all the rights and obligations to the new party
Hence, Option A is correct
You are told that if you invest $11,000 per year for 23 years( all payments made at the end of each year) you will have accumulated $366,000 at the end of the period What annual rate of return is the investment offering.
Answers
Answer:
3.2%
Explanation:
this is an ordinary annuity:
future value of an ordinary annuity = annual payment x future value annuity factor
$366,000 = $11,000 x future value annuity factor
future value annuity factor = $366,000 / $11,000 = 33.2727
you can solve this in two ways:
the first is with a lot of math work in order to solve the following equation
33.2727 = [(1 + i)²³ - 1] / i
or
you can use an annuity calculator (available online) which will yield 3.2%
calculating the present value of money is referred to as
Answers
Calculating the present value of money is referred to as discounting. This is because the present value of money is calculated by discounting the future value of money by a discount rate.
The discount rate represents the interest rate that could be earned on an investment, so it takes into account the time value of money. The time value of money is the idea that money today is worth more than the same amount of money in the future.
This is because money today can be invested and earn interest, so it will be worth more in the future. The discount rate is used to calculate how much less money in the future is worth than the same amount of money today. For example, if the discount rate is 5%, then $100 in one year is worth $95.23 today.
This is because if you invest $95.23 today, it will grow to $100 in one year. Discounting is a useful tool for financial decision-making. It can be used to compare different investment options, or to determine how much money you need to save for a future goal.
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What are some things you do NOT include in a personal property inventory?
Answers
Answer:
your house car etc. things like that
Explanation:
The Americans with Disabilities Act (ADA) requires that a company
a. provide training to people with disabilities
b. find ways to help workers who are physically challenged
c. hire a certain number of people with special needs
d. adapt products manufactured for special-needs customers
TIMEEDD FIRST ANWER GETS BRAINLIEST!!!!
Answers
Answer:
b. find ways to help workers who are physically challenged.
Explanation:
name an internal data source that can be used for planning
Answers
Answer:
Sales. Internal data in the sales department include revenue, profits, and bottom line. ...
Finance. ...
Marketing. ...
Human Resource.
An international business is a firm that
Part 2
A. hires non-U.S. citizens.
B. produces a wide range of products.
C. is not from the United States.
D. engages in international trade or investment.
Answers
Option D: An international business is a firm that engages in international trade or investment.
Therefore, the correct answer is option D. An international business is a company that conducts business across national borders. This can include importing and exporting goods, investing in foreign markets, and operating in multiple countries.
It is not necessarily defined by the nationality of its employees, the range of products it produces, or the country in which it is headquartered. International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more countries.
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which kind of budget will cause the largest increase in a country's national debt
Answers
At a local grocery store, they sell a Visa card that has a prepaid amount on it. People can use this card anywhere, but it cannot be used for more than its prepaid value. Which type of card is this?
A.
a debit card
B.
a smart card
C.
a stored value card
D.
a retail credit card
Answers
The type of the card is a Retail Credit card. Hence the option (D) is the correct one.
What is the function of retail credit cards work?For retail credit cards, an image You can potentially obtain benefits at some retail establishments if you have a retail store credit card.
Decide if you want a card that restricts the retailers with which you may earn rewards or one that enables you to earn rewards for regular purchases. Benefits could consist of privileged access to funding, exclusive deals, discounts, and awards.
For instance, paying in whole for a motorcycle costing $10,000 would be excessive for a buyer.
Consumer will receive a $10,000 loan from retail credit institutions, which will be repaid with interest over a period of time in the form of monthly installments.
Hence the correct option is (D).
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Why can you win a presidential election without winning the most individual votes?
Answers
Answer:
Because of Electoral College system
Explanation:
Answer:
You can win when you get more electoral college votes than your opponent. The first to 270 votes wins the race.
Explanation:
(hope this helps :P)
. In one to two sentences, explain how the money for a negative tax for low-income earners could be redistributed from high-income earners.
Answers
A negative tax for low-income earners could be funded by redistributing money from high-income earners through a progressive tax system.
The money for a negative tax for low-income earners could be redistributed from high-income earners through a progressive tax system where individuals with higher incomes pay a higher percentage of their income in taxes, which can be used to fund programs like the negative income tax. This approach aims to reduce income inequality by providing support to low-income earners while ensuring that those with higher incomes contribute proportionally more to society's overall financial needs.
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what is an automated system that typically asks a series of questions and then takes specific actions based on the responses to those questions
Answers
An automated system that typically asks a series of questions and then takes specific actions based on the responses to those questions is known as an Interactive Voice Response (IVR) system.
IVR systems are commonly used in customer service operations, and they allow customers to interact with a company's automated phone system to receive information, access their account, make payments, report a problem, or perform other tasks. IVR systems use speech recognition and touch-tone inputs to understand and respond to customer requests, and they can route calls to the appropriate department or representative based on the customer's responses. IVR systems are designed to provide efficient and convenient service to customers, and they are often used in industries such as telecommunications, banking, and insurance.
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what is an automated system that typically asks a series of questions and then takes specific actions based on the responses to those questions?
Which type of information system is used to manage personnel, finances, materials, supplies, or equipment
Answers
The type of information system used to manage personnel, finances, materials, supplies, or equipment is an enterprise resource planning (ERP) system.
This system integrates all aspects of a business's operations into a single, comprehensive system that can be accessed by different departments and employees.
ERP systems can manage a range of business processes, including financial management, human resource management, procurement and purchasing, supply chain management, inventory management, and customer relationship management. These systems enable businesses to streamline their operations, improve efficiency, and reduce costs.
The benefits of an ERP system include improved communication and collaboration between departments, greater visibility into business operations, enhanced data accuracy and consistency, and better decision-making capabilities. Additionally, these systems can help businesses stay compliant with regulations and standards, such as financial reporting requirements and data privacy laws.
Overall, an ERP system is a powerful tool for managing a business's resources and operations. It allows companies to gain a competitive advantage by optimizing their processes and leveraging data to make informed decisions.
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At a 100% annual interest rate, a rational investor would be indifferent about choosing between receiving $20 today and:_____.
Answers
At a 100% annual interest rate, a rational investor would be indifferent about choosing between receiving $20 today and higher amount in future.
This is because a 100% interest rate implies that the investment would double in value within one year. Therefore, the investor would expect to receive $40 after one year if they choose to delay receiving the payment.
If the investor chooses to receive $20 today, they can potentially invest it and earn a 100% return within a year, resulting in the same amount of $40. In this scenario, the investor's decision would depend on their investment opportunities and risk preferences.
If they believe they can earn a higher return by investing elsewhere, they may choose to receive the payment today.
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8
10
TIME REMAINING
58:45
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What is the difference between profit and revenue?
O Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after
subtracting the production costs.
Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount
producers receive after selling a good.
O Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after
subtracting the production costs.
O Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after
selling a good.
Noya
Submit
Answers
Answer:
Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
Explanation:
amougus
How to write a buissness plan of a
salon
Answers
plan out the design, the place of work, the things you need for it and most importantly the budget you have
Answer:
plan out the design on a blueprint and gather some money to help you out. Then organize the price of the electricity bills supplies etc.
Explanation:
Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of what management method?a. Tactical planningb. Contingency planningc. Single-use planningd. Management by objectivese. Management by walking around
Answers
The management method that focuses manager and employee efforts on activities that will lead to goal attainment is Management by Objectives (MBO). Therefore, option (d) is the correct answer.
MBO is a goal-oriented management technique that involves setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives and aligning individual and organizational goals to achieve them. This process typically involves the following steps:
Setting objectives: Managers and employees work together to set objectives that are specific, measurable, achievable, relevant, and time-bound.Developing action plans: Once the objectives are set, the manager and employee develop action plans that outline the steps needed to achieve the objectives.Performance reviews: Regular performance reviews are conducted to monitor progress towards the objectives, identify any obstacles or problems, and make any necessary adjustments to the action plan.Evaluating performance: At the end of the performance period, the manager and employee evaluate the employee's performance against the objectives set at the beginning of the period.Learn more about employee here:
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Are those buyers who want to be the first on the block to have the new product or service.
a. Enjoy taking risks
b. Highly knowleadgeable
c. Keep themselves very well informed
d. Crucial to the success of any new product
Answers
Buyers who want to be the first on the block to have the new product or service enjoy taking risks and are regarded as highly knowledgeable. Hence, A and B are the correct options.
Innovation is the transformation of a concept into a workable reality. This is a product, method, business concept, or combination thereof that has been launched in the market and generates new revenues and organizational growth for the company.
Innovative things are fresh and unique. You are an innovative person if you enjoy trying new things and coming up with creative solutions.Innovative, as well as the words nova, novel, and novice, are all derived from the Latin word novus, which means new. Something innovative renews or modifies the way something has been done.
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what is a partnership
Answers
Name three factors that determine a good’s or service’s elasticity.
Answers
Answer:
Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price.
Explanation:
Answer:
(1) availability of substitutes(2) if the good is a luxury or a necessity, (3) the proportion of income spent on the good, and(4) how much time has elapsed since the time the price changed.Nora was looking forward to the training programme which she had been hired to conduct at Syarikat Ceria Selalu. She was an experienced trainer and enjoyed meeting people from different organizations. However, when she arrived at Syarikat Ceria Selalu, a company for which she had never previously conducted training, she was shocked. Upon arriving at the main gate of the large factory compound, she found that the security staff had not been informed that a training programme was being organized that day. Further, as they didn’t seem to speak much Bahasa Malaysia or English, she could not explain to them that she needed to find the Training Department. They waved her in the general direction of the main office lobby where the HR Officer was contacted by the receptionist, who also did not know about the planned training. She had to wait nearly half an hour before the HR Officer arrived to take care of her to the meeting room which was being used for the training.
It was immediate
Answers
When_
a business, there could be many departments or just a few.
Answers
When running a business, there could be many departments or just a few.
What is a business?This is a term that is used to refer to an organization that is set up for the sake of gains or profits.
A business could be responsible for the delivery of a product or they could be involved in the rendering of services.
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is there a relationship between productivity and months of service? draw the type of graph that can be used to analyze this problem.
Answers
There could potentially be a relationship between productivity and months of service.
It is possible that there is a relationship between productivity and months of service. As employees gain more experience and become more familiar with their job duties, they may become more efficient and productive. On the other hand, there may be a plateau where productivity levels off after a certain amount of time on the job.
To analyze this relationship, a scatter plot can be used. The horizontal axis would represent months of service and the vertical axis would represent productivity. Each employee's data point would be plotted on the graph, with their months of service on the x-axis and their productivity score on the y-axis.
If there is a positive relationship between productivity and months of service, the data points would form an upward-sloping line. If there is a negative relationship, the line would slope downwards. If there is no relationship, the data points would be scattered randomly across the graph.
Once the graph is plotted, additional analysis can be performed to determine the strength and direction of the relationship, such as calculating the correlation coefficient. This information can be useful for decision-making related to employee training and development, performance evaluations, and staffing decisions.
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If a bank benefits when a foreign currency declines in value, then the bank must be in a __________ position. The term below that correctly fills in the blank in the preceding sentence is: Group of answer choices
Answers
NEED HELP AS SOON AS POSSIBLE
Answers
Answer:it is 10,000
Explanation:
Answer:
Q1: Total assets= 25,200
Q2: Total liabilities = 16,500
Explanation:
Q1: Add all your assets to get total assets
Q2: Add all your liabilities to get total liabilities
Q3: Your net worth, quite simply, is the dollar amount of your assets minus all your debts. You can calculate your net worth by subtracting your liabilities (debts) from your assets. If your assets exceed your liabilities, you will have a positive net worth. Conversely, if your liabilities are greater than your assets, you will have a negative net worth.
25, 200-16,500=+8700
Suppose goods a and b are substitutes for each other. We would expect the cross-price elasticity between these two goods to be.
Answers
When two goods a and b are substitutes for each other then the cross-price elasticity between these two goods will be positive.
Economists use the cross-price elasticity of demand to categorize the relationship between two different items. The positive cross-price elasticity of demand indicates that two goods are substitutes. In other words, a decrease in the quantity demanded of a product due to an increase in its price will result in a rise in the demand for its substitute. On the other hand, if a product's price is reduced which will eventually increase the demand, the demand for its substitute product will decline.
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a company has an investment project that will cost $2 million today and yield a payoff of $3 million in 5 years. what interest rate represents the cutoff between profitability and nonprofitability for this project?
Answers
The cutoff interest rate for this investment project is 8.55%.
To determine the interest rate that represents the cutoff between profitability and non-profitability for this project, we can use the net present value (NPV) formula. NPV is the difference between the present value of cash inflows and the present value of cash outflows. In this case, the cash outflow is $2 million today, and the cash inflow is $3 million in 5 years.
NPV = Cash inflow / (1 + r)^n - Cash outflow
where r is the interest rate and n is the number of years.
Setting the NPV to zero, we can solve for the interest rate:
0 = 3 million / (1 + r)^5 - 2 million
1 + r = (3 million / 2 million)^(1/5)
r = (3 million / 2 million)^(1/5) - 1
r = 8.55%
If the interest rate is higher than 8.55%, the NPV will be negative, indicating that the project is not profitable. If the interest rate is lower than 8.55%, the NPV will be positive, indicating that the project is profitable.
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In general, courts will not enforce a contract in which the offer states that the offeree's failure to respond will be considered an acceptance of the offer. True or False True False
Answers
The statement in general, courts will not enforce a contract in which the offer states that the offeree's failure to respond will be considered an acceptance of the offer is true. The general rule of contract law requires that an offer be accepted in the same form as it was made. Contrary to popular belief, the parties are not bound by a counteroffer.
Which is a qualified or conditional acceptance of an offer. a legal agreement designed to prevent the offeror from withdrawing their offer for a specified period of time. In India, when parties are distant and communicating an offer and acceptance via telephone or telex, the place of completion of the contract is the place where the offeree speaks to the offeror to express his acceptance of the offer.
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How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
According to the video, which employer hires most career Firefighters?
city and country fire departments
chemical and manufacturing plants
airports
agencies that fight forest fires
Answers
The first choice, which refers to both city and rural fire departments, is correct.
What do firefighters contribute to society?A firefighter is a first officer on the scene and rescuer who has received extensive training in firefighting. Their main duty is to put out dangerous fires that endanger men's careers, their property, and the environment.They may also be required to protect the life of livestock in specific circumstances or jurisdictions.. A female firefighter is less commonly referred to as a firewoman than a male firefighter.
One of the three basic emergency responders is the fire service, typically known as the fire dept or fire department in multiple countries. There are now firefighters everywhere in the world, both on ships and in cities..
Throughout a firefighter's career, the skills necessary for safe operations are routinely practised throughout training evaluations. Introductory firefighting techniques are typically taught in fire academies or training programmes that have received municipal, regional, or state approval. Further knowledge and credentials in fields like technical rescue and pre-hospital medicine may also be obtained at this time, depending on the demands of a department.
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Answer:
city and country fire departments