Business, 08.11.2019 03:31 jackparo9640

Marble construction estimates that its wacc is 10 percent ifequity comes from retained earnings. however, if the company issuesnew stock to raise new equity, it estimates that its wacc will riseto 10.8 percent. the company believes that it will exhaust itsretained earnings at $2,500,000 of capital due to the number ofhighly profitable projects available to the firm and its limitedearnings. the company is considering the following seven investmentprojects:

project size irr

a $650,000 14.0%

b 1,050,000 13.5

c 1,000,000 11.2

d 1,200,000 11.0

e 500,000 10.7

f 650,000 10.3

g 700,000 10.2

assume that each of these projects is independent and that eachis just as risky as the firm’s existing assets. which set ofprojects should be accepted, and what is the firm’s optimalcapital budget?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:30

How can a poor housing market put home buyers in a financially unstable position? a. changing property values means it’s easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.

Answers: 1

Answer

Business, 22.06.2019 03:40

Oceanside marine company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. oceanside uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 2 pound per unit; $ 11 per pound direct labor: 2 hours per unit; $ 19 per hour oceanside produced 2 comma 000 units during the quarter. at the end of the quarter, an examination of the direct materials records showed that the company used 7 comma 500 pounds of direct materials and actual total materials costs were $ 98 comma 100. what is the direct materials cost variance? (round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

Answers: 1

Answer

Business, 22.06.2019 06:20

At a small store, a customer enters the front door on average every 8 minutes. a prior study indicated that the time between customers entering the front door during weekdays follows an exponential distribution. what is the probability that the time between customers entering the store on a weekday will be less than or equal to 7? select one: a. 62 b. 43 c. 1/8 d. 7/8 e. 58

Answers: 1

Answer

Business, 22.06.2019 10:50

Explain whether each of the following events increases, decreases, or has no effect on the unemployment rate and the labor-force participation rate.a. after a long search, jon finds a job.b. tyrion, a full-time college student, graduates and is immediately employed.c. after an unsuccessful job search, arya gives up looking and retires.d. daenerys quits her job to become a stay-at-home mom.e. sansa has a birthday, becomes an adult, but has no interest in working.f. jaime has a birthday, becomes an adult, and starts looking for a job.g. cersei dies while enjoying retirement.h. jorah dies working long hours at the office.

Answers: 2

Answer

You know the right answer?

Marble construction estimates that its wacc is 10 percent ifequity comes from retained earnings. how...

Questions