Business, 23.10.2019 21:00 VamPL

Cranberry corp. has two divisions of equal size: a computer manufacturing division and a data processing division. its cfo believes that stand-alone data processor companies typically have a wacc of 8%, while stand-alone computer manufacturers typically have a 12% wacc. he also believes that the data processing and manufacturing divisions have the same risk as their typical peers. consequently, he estimates that the composite, or corporate, wacc is 10%. a consultant has suggested using an 8% hurdle rate for the data processing division and a 12% hurdle rate for the manufacturing division. however, the cfo disagrees, and he has assigned a 10% wacc to all projects in both divisions. which of the following statements is correct? a. while the decision to use just one wacc will result in its accepting more projects in the manufacturing division and fewer projects in its data processing division than if it followed the consultant

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 02:50

Acompany set up a petty cash fund with $800. the disbursements are as follows: office supplies $300 shipping $50 postage $30 delivery expense $350 to create the fund, which account should be credited? a. postage b. cash at bank c. supplies d. petty cash

Answers: 2

Answer

Business, 22.06.2019 10:10

conquest, inc. produces a special kind of light-weight, recreational vehicle that has a unique design. it allows the company to follow a cost-plus pricing strategy. it has $9,000,000 of average assets, and the desired profit is a 10% return on assets. assume all products produced are sold. additional data are as follows: sales volume 1000 units per year; variable costs $1000 per unit; fixed costs $4,000,000 per year; using the cost-plus pricing approach, what should be the sales price per unit?

Answers: 2

Answer

Business, 22.06.2019 20:00

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. this increased level of is leading to increased emphasis on management.

Answers: 2

Answer

Business, 22.06.2019 21:30

Which of the following best explains why online retail companies have an advantage over regular stores? a. their employees make less money because they mostly perform unskilled tasks. b. they are able to keep distribution costs low by negotiating deals with shipping companies. c. their transactions require expensive state-of-the-art technological devices. d. they have a larger number of potential customers because people anywhere can buy from them.

Answers: 1

Answer

You know the right answer?

Cranberry corp. has two divisions of equal size: a computer manufacturing division and a data proce...

Questions