The rate of return a company must earn to meet the demands of its lenders and expectations of its equity holders is called Multiple Choice cost of capital. retained earning. opportunity rate. acquisition cost.
Answers
The rate of return a company must earn to meet the demands of its lenders and expectations of its equity holders is called the cost of capital.
The cost of capital is the minimum rate of return that a company must achieve on its investments to satisfy its investors and creditors. This rate is based on the cost of debt and the cost of equity, which are the costs associated with the funds the company has borrowed or raised from investors.
The cost of debt is the interest rate the company pays on its debt, and the cost of equity is the return investors require to invest in the company's stock. The weighted average cost of capital (WACC) is a common measure used to determine a company's cost of capital, which takes into account the relative weight of each type of capital in the company's overall capital structure.
what is investment?
Investment refers to the act of allocating money or resources with the expectation of generating future income or profit.
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The "cost of capital." This refers to the rate of return that a company must earn in order to meet the expectations of its lenders and equity holders.
The cost of capital is determined by the company's cost of debt and cost of equity, which are used to calculate a weighted average cost of capital (WACC).This WACC reflects the minimal return on investment that a company must achieve to satisfy its creditors and investors. The cost of capital is a crucial financial metric for any company, as it helps to determine the feasibility of new projects or investments. If the cost of capital is too high, it may be difficult for the company to generate sufficient returns to satisfy its stakeholders. On the other hand, if the cost of capital is too low, the company may not be taking on enough risk or may be missing out on potentially lucrative opportunities. As such, it is important for companies to carefully manage their cost of capital in order to balance the needs of their investors and lenders with their own growth and profitability goals.
The cost of capital represents the minimum return a company needs to achieve to satisfy its investors, including debt and equity holders. It is a crucial concept for evaluating investment opportunities and ensuring the company generates enough return to cover the risks taken by its investors.
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Related Questions
In early 2009, General Electric (GE) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80 per share. GE also had cash of $48 billion, and total debt of $524 billion. Three years later, in early 2012, GE had a book value of equity of $116 billion, 10.6 billion shares outstanding with a market price of $17 per share, cash of $84 billion, and total debt of $410 billion. Over this period, what was the change in GE's a. Market capitalization? b. Market-to-book ratio? c. Enterprise value?
Answers
Answer and Explanation:
1. The computation of Market capitalization is shown below:-
Market Capitalization in 2009 = Market Price × Outstanding Shares
= 10.5 × $105
= $1,102.5 billion
Market Capitalization in 2012 = Market Price × Outstanding Shares
= $17 × $10.6
= $180.2 billion
Changes in Market Capitalization = Market Price × Outstanding Shares
= $1,102.5 billion - $180.2 billion
= $922.3
b. The computation of Market-to-book ratio is shown below:-
Market to Book Ratio in 2009 = Market Value of Firm ÷ Book Value of Firm
= $1,102.5 billion ÷ $105 billion
= 10.5
Market to Book Ratio in 2012 = Market Value of Firm ÷ Book Value of Firm
= $180.2 billion ÷ $116 billion
= 1.55
Changes in Market to Book Ratio = Market to Book Ratio in 2009 - Market to Book Ratio in 2012
= 10.5 - 1.55
= 8.95
c. The computation of enterprise value is shown below:-
Book Debt to Equity Ratio in 2009 = Debt ÷ Book Value of Equity
= $524 ÷ $105
= 4.99
Book Debt to Equity Ratio in 2012 = Debt ÷ Book Value of Equity
= $410 ÷ $116
= 3.53
Changes in Book Debt to Equity Ratio = Book Debt to Equity Ratio in 2012 - Book Debt to Equity Ratio in 2009
= 3.53 - 4.99
= -1.46
Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable debt securities classified as available-for-sale securities. Assume that these transactions occur in 2016 (before the new rules for securities went into effect). Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable debt securities classified as available-for-sale securities. Assume that these transactions occur in 2016 (before the new rules for securities went into effect).
a. Loudder Inc. purchases 4,000 bonds with a face value of $1,000 per bond. The bonds are purchased at par for cash and pay interest at a semi-annual rate of 4%.
b. Loudder receives semi-annual cash interest of $160,000.
c. Year-end fair value of the bonds is $978 per bond.
d. Shortly after year-end, Loudder sells all 4,000 bonds for $970 per bond.
Answers
To record the accounts and amounts for the four transactions involving investments in marketable debt securities classified as available-for-sale securities, we will use the financial statement effects template.
Here are the entries for each transaction:
a. Purchase of Bonds at Par:
Assets:
Marketable Debt Securities (Available-for-Sale) $4,000,000
Cash $4,000,000
b. Receipt of Semi-annual Cash Interest:
Assets:
Cash $160,000
Interest Income $160,000
c. Year-end Fair Value Adjustment:
Assets:
Unrealized Holding Gain or Loss (OCI) $88,000
Marketable Debt Securities (Available-for-Sale) $88,000
d. Sale of Bonds:
Assets:
Cash $3,880,000
Unrealized Holding Gain or Loss (OCI) $48,000
Marketable Debt Securities (Available-for-Sale) $4,000,000
Realized Gain on Sale of Investments $8,000
These entries reflect the effects of each transaction on the appropriate accounts in accordance with the available-for-sale classification. The amounts in the entries are not specified, so they are not included in the response.
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The cvs extra care card is an example of a ________, which is specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.
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Based on business strategy, the cvs extra care card is an example of a loyalty program which is specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.
A loyalty program is a common strategy in business. The seller or producer creates to motivate customers to shop or return to purchase their goods or services.
Loyalty programs often include discounts on the current price or getting the point to make a purchase.
Hence, in this case, it is concluded that the correct answer is "Loyalty program."
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Which best describes the business, management, and administration career cluster?
Answers
Answer:
are careers that are focused on running businesses.
Explanation:
The Business, Management, and Administration career cluster includes business skills essential to efficient, productive operations for any company (Administrative and information support, Business analysis, Business, financial management and accounting, Human resources, Management..) The Business, Management, and Administration career cluster is best described with the following: These are careers that are focused on running businesses.
Correct answer: A
how might you use your knowledge of taxes to make sound financial decisions?
Answers
Answer: If you know about taxes you can make better financial descisions because most descisions are made thru taxes. Taxes are numbers and stats that allow us to determine whether or not to buy something.
Explanation:
taxes also show how inflated a market is
What is the name for the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to target audiences?
Answers
Answer:
Integrated Marketing Communication
Explanation:
As the name implies, the concept of integrated marketing communication is aimed at leveraging the power that comes with the synergy between different marketing and communication tools and services such as consistent and repetitive advert placement, sales and promotional offers, coordinated and friendly marketing campaigns, and son on, all these carefully and strategically tailored towards the gradual and steady capture of a specific target audience over a certain period of time. These integrated marketing strategy or procedure is aimed towards such audience so that it would cover all aspects of the consumers wants in other to ultimately impact their deciak making and adoption of the product or services.
WILL GIVE BRAINLIEST: Which of the following will occur if aggregate demand is above full-employment GDP?
A) Inflation
B) Unemployment
C) A stable economy
D) Recession
SELECT ONE.
Answers
Answer:
B
Explanation:
B) unemployment
What are some common spreadsheets applications?
Answers
USES ( APPLICATIONS) of spreadsheet are;
1) to create budgets : Excel can be used in creation of budget s which is the estimation of revenue as well as expenses which covers specified future period of time.
2)produce graphs and charts: it's application is helpful in creating graphs in mathematics as well as statistics
3 for storing and sorting data: Data sorting can be done using spreadsheet. It involves arrangements of data into an order in order to make analysis of the data easier.
SPREADSHEET APPLICATION
1)Microsoft Excel : This is used in data
crunching , it can handle large data sets.
2)LibreOffice : it's applicable in Calc for a free as well as native spreadsheet app.
4) Smartsheet: is useful when handling
task involving non-spreadsheet and can be used for project management.
5)Quip : it's useful for integration of
spreadsheets into shared documents.
Businesses that offer flexible hours allow their workers to arrive at work whenever they feel like it. please select the best answer from the choices provided t f
Answers
A flexible schedule permits an employee to work hours that deviate from the typical start and stop times of the organization.
Is it good to have a flexible schedule?Flexible employment is no longer limited to gig workers or freelancers; many "conventional" firms are also providing flexible schedules to their employees.
Flexible schedules help employees, and wise companies understand that giving flexible schedules benefits them as well. From being a green company to having a competitive advantage in recruitment and boosting diversity, the advantages of flexible work for businesses can help your organization stay ahead of the competition.
Thus, The statement is False.
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assume person a b and c make up the market for oranges. if the price is $1 per orange, what is the market quantity demanded
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Based on the information supplied, the market quantity requested for oranges cannot be calculated. The complete amount of an item or service that customers.
are willing and able to acquire at a given price is known as the market quantity requested. To establish the market amount sought for oranges, information on person A, B, and C's individual requests, such as their individual income, tastes and preferences, and availability of replacements, is required. Based on the information supplied, the market quantity requested for oranges cannot be calculated. The complete amount of an item or service that customers. person a b and c make up the market for oranges. if the price is $1 per orange, what is the market quantity demanded.
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Crop yield is the ratio of the number of bushels harvested to the number of acres used for the harvest. This year, a large farm harvested rice from 690 acres of farmland. The crop yield was 7,553 bushels per acre. Approximately how many bushels of rice were harvested? 0. 1 million bushels 5. 2 million bushels 8. 2 million bushels 10. 9 million bushels.
Answers
The step-by-step computation is solved below. Kindly go through them thoroughly with the given reference link.
Option B is the correct number od bushels of rice harvested.
Given;The crop yield per acres = 7,553
The number of acres harvested = 690
Formula\(\text{ The number of bushels harvested = Number of Acres} \) × \(\text{ Crop yield per acre}\)
Computation:
\(\text{ The number of bushels harvested = 690 Acres} \) × \(7,553\)
\(\text{ The number of bushels harvested = 5,211,570 Bushels of Rice}\)
\(\text{The Number of bushels harvested = 5. 2 million bushels} \)
Therefore, there were 5.2 million bushels harvested.
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Making a home inventory (select all that apply)
Question 3 options:
A: will decrease your premium by 5%.
B: will help you get your claim settled faster.
C: will help you to determine how much liability coverage to purchase.
D: will help you to determine how much personal property coverage to purchase.
Answers
A : wil dercease your premium by 5% and if my answer is nice like and thanks!!!!!!!
Automobile manufacturers such as ford and general motors often use ________blank distribution, such that dealers act as retailers.
Answers
Automobile manufacturers such as ford and general motors often use indirect distribution, such that dealers act as retailers.
Automobile, byname auto, also known as motorized vehicle or car, a normally four-wheeled automobile designed mainly for passenger transportation and commonly propelled via an inner-combustion engine the use of a risky gas.
The term includes "a land motor automobile or trailer, another land device capable of transferring beneath its very own electricity, device for use therewith, and animal-drawn equipment." right here an automobile might be a private passenger, a truck of any kind, a bulldozer, a residence trailer, a self-propelled combine, or even a farm wagon. Passenger automobiles are motor vehicles with as a minimum of four wheels, used for the transport of passengers, and comprising no extra than 8 seats further to the driving force's seat. mild business motors are motor vehicles with at least 4 wheels, used for the carriage of goods.
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Controlling the materials price variance is usually the responsibility of: A. The purchasing agent.B. The marketing director C. The production supervisor. D. The cost accountant.
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Out of the alternatives given above, it may be ascertained that the purchasing manager or agent is responsible for controlling the materials price variance within the organization. Therefore, the option A holds true.
The purchasing manager of an organization can be referred to or considered as the personnel who are responsible for fulfilling all the managerial duties and functions related to the price and production of the goods being produced within an organization. They usually work in close coordination with the production managers.
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The duality of effects refers to the fact that each transaction ______.
Answers
has at least two effects on the basic accounting equation.
Has this white's video prompted you to make any changes in the way that you view or manage your personal finances? Do you think it will impact how you handle your personal finances in the future? Explain.
Answers
The video by Elizabeth White should prompt people to make a change in how they handle their finances as it shows how easily our finances can take a turn for the worst.
Why should be manage our personal finances effectively?In this TED Talk, Elizabeth White talks about how her's and the Boomer generation's personal finances are in never ending trouble and how they are being blamed for not planning their finances well.
It shows how easily things can change for the worst financially as Elizabeth White went through a tough time.
This shows that it is important to take stock of our finances such that we won't go through what she did and be able to survive financial emergencies. We can do this by saving up and talking to financial planners.
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Nadia uses a VA loan to buy a house for $125,000. She wants to buy the neighboring property, an empty lot, so she can improve the house using the extra land. The lot is for sale for $135,000. Can she use a VA loan for this purchase?
Answers
Nadia can still use the VA loan as she should have some money left
The VA loanA VA loan this is a type of mortgage strictly reserved for Veterans and issued through a U.S. Department of Veterans Affairs program.
Their surviving spouses and brought in the loop as well as the beneficiary and are backed by the federal government.
Therefore,Nadia can still use the VA loan as she should have some money left
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{20 points} HELP ASAP
What can nonprinting characters tell you? Check all that apply.
A) whether a large space was created with the spacebar or the tab key
B) whether the author misspelled any words
C) how long it took the author to create the document
D) where the author pressed the return key
Answers
Answer:
A and D
Explanation:
edge 2021
A country somewhere in Asia has a very low GDP or
income. One of the ways to increase a country’s income is
to improve the skills of its citizens. If you were the
government, what programs would you do so that the
skills of the citizens can be improved?
Answers
The skills of the citizens can be improved to boost the economy of the country.
In order for a country to improve its GDP, it needs a workforce that has the necessary skills and knowledge to contribute to the economy. One way to achieve this is through education and training programs that help individuals acquire the skills needed for different jobs. Another way is through investments in infrastructure and technology that can create new job opportunities and attract foreign investments.
By improving the skills of its citizens, a country can increase productivity and innovation, leading to higher economic growth and a better standard of living for its people. It is important for the government and private sector to work together to develop strategies and initiatives that support the development of human capital and improve the skills of the workforce.
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which of the following statements is true of open-market operations? a. open-market operations involve the fed's purchase and sale of foreign exchange. b. open-market operations involve clearing checks. c. open-market operations involve lending money to member banks. d. open-market operations involve the fed's purchase and sale of government securities. e. open-market operations involve accepting deposits from member banks.
Answers
The correct statement about open-market operations is that open-market operations involve the fed's purchase and sale of government securities. (Option D).
What is Open Market Operations?The federal funds rate and other interest rates are changed by the Federal Reserve through open market operations. This is done to either stimulate or slow the economy. The Fed can expand the money supply and lower the fed funds rate by customarily purchasing Treasury securities. It can also raise the Fed Funds Rate by selling securities off its balance sheet. As a result, interest rates are under upward pressure and money is taken out of circulation.
Any country's central bank participates in open market activities, which deal with the selling and purchasing of Treasury bills and other government property, in order to regulate the amount of money in the economy.
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TRUE / FALSE. expectancy theory predicts that high expectancy, instrumentality, and valence will result in zero motivation.
Answers
FALSE. The Expectancy Theory and its relationship with motivation.
According to Expectancy Theory, motivation is a product of three components: expectancy, instrumentality, and valence. High levels of expectancy, instrumentality, and valence will lead to increased motivation, not zero motivation.
- Expectancy refers to the belief that one's effort will result in successful performance.
- Instrumentality is the belief that successful performance will lead to desired outcomes or rewards.
- Valence represents the value or importance individual places on the outcomes or rewards.
When all three components are high, motivation will be high as well. If any of these components is low or zero, motivation will decrease.
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write how vermicompost is prepared in a pit
Answers
Explanation:
Vermicomposting pits are mainly used by farmers. These farmers dig a large hole that serves the purpose of burying worms and organic waste material. Pits made for vermicomposting are usually 1 m deep and 1.5 ms wide.
The computation of depreciation under macrs differs from the gaap computation except for?
Answers
The computation of depreciation under MACRS differs from the GAAP computation except for the determination of asset cost.
The depreciation approach allows for large deductions in the early years of an asset's existence, and lower deductions in later years. This contrasts considerably with immediately-line depreciation, in which you declare the same tax deduction every yr, till the cease of the asset's usable life.
GAAP, the fee of a hard and fast asset is capitalized and systematically depreciated over its useful life. For tax functions, constant belongings are depreciated under the changed improved cost recuperation device, which generally results in shorter lives than beneath GAAP.
MACRS permits for more improved depreciation over longer time intervals. this is beneficial on account that faster acceleration allows people and groups to deduct greater amounts throughout the primary few years of an asset's existence, and relatively less later.
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Because of the contemporary economic issues, what can happen to the investments made of the filipino entrepreneurs to their business?
Answers
Because of the contemporary economic issues, what can happen to the investments made of the filipino entrepreneurs to their business are:
inadequate access to technologyfinancing capital,What are the contemporary issues that can have effect on the Filipino entrepreneur?The contemporary issues that can have effect on the Filipino entrepreneur is the unavailable of the financing capital
It should be noted that one of the issue that the Filipino entrepreneurs are encountering today is that they do not have full access to technology , and in today's world, technology is very important in every business.
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Features, Advantages and disadvantages free market economy?
Answers
Answer:
Advantage: Absence of Red Tape.
Advantage: Freedom to Innovate.
Advantage: Customers Drive Choices.
Disadvantage: Limited Product Ranges.
Disadvantage: Dangers of Profit Motive.
Disadvantage: Market Failures
Explanation:
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a flexible budget performance report indicates a sales variance of $200 unfavorable. the variance was likely caused by: multiple choice question. selling units for less than the budgeted price selling more units than budgeted selling units for more than the budgeted price
Answers
The variance was likely caused by selling units for less than the budgeted price.
How do you calculate a flexible budget's variance?For instance, a flexible budget model is created with the expectation that the cost per unit will be $100. 800 units were sold in the most recent month, with a $102 average selling price per unit. By multiplying 800 units by $2 per unit, the favorable flexible budget variance for revenue equals $1,600.
What is the difference between the actual sales results and the flexible budget?A flexible budget variation is a calculated discrepancy between the budget that was anticipated and the outcomes. In the aforementioned illustration, the corporation has a goal production capacity of 85%. The estimated or anticipated 212,500 unit sales volume results in a $740,625 profit.
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please help me anyone (picture attached)
Answers
Answer:
Im not entirely sure, but i think
2. Should be D
3. Should be A
(i could be wrong but im about 90 percent sure those r right)
Explanation:
The impact of discrimination behaviour to an individual
Answers
Answer:
Discrimination affects people's opportunities, their well-being, and their sense of agency. Persistent exposure to discrimination can lead individuals to internalize the prejudice or stigma that is directed against them, manifesting in shame, low self-esteem, fear and stress, as well as poor health.
Explanation:
Vaughn Manufacturing produces 1000 units of a necessary component with the following costs: None of Vaughn Manufacturing's fiscd overhead costs can be reduced, but another product could be made that would increase profit contribution by $9000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Vaughn Manufacturing would be willing to accept to acquire the 1000 units externally?$53000
$60000
$57000
548000
Answers
If cost minimization is the major consideration for Vaughn Manufacturing and they prefer to buy the components externally, the maximum external price they would be willing to accept to acquire the 1000 units is $57,000.
The decision to make or buy a component involves evaluating the cost of producing the component internally versus the cost of acquiring it externally. In this case, Vaughn Manufacturing has determined that acquiring the components externally would increase their profit contribution by $9,000 compared to producing them internally. Since cost minimization is the major consideration, the company would prefer to buy the components.
To determine the maximum external price Vaughn Manufacturing would be willing to accept, we need to consider the cost savings they would achieve by buying externally. The $9,000 increase in profit contribution represents the cost savings they would realize. This cost savings can be considered the maximum amount the company would be willing to spend to acquire the components externally. Therefore, the maximum external price they would be willing to accept is $57,000. Any price higher than that would eliminate the cost savings and diminish the overall profitability of the company.
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Which multimedia and interactive elements do you think would best support your viewpoint on the topic you chose for your blog? Write two to four sentences explaining what multimedia and interactivity you will use and why.
Answers
Answer:
I will use images and details from credible websites, which will boost my own credibility and support my claim. I will also use charts and graphs from trusted web resources, such as government and university sites, to make my supporting evidence clear
Explanation:
I took the test
Brainiest???
The Use of videos, audios, and images in the blog will not only make it attractive but also make it credible.
Best Way to Write BlogTo write a credible and attractive blog we need to use multimedia such as videos, images, link of credible websites. We can also use other elements which can autocorrect grammer mistakes, can easily provide best charts and graphs.
The use of these elements can give a better outlook to our blog, and also create a sense of trust and credible information.
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