Business
Business, 21.08.2019 04:10, gototiger

Why should firms that own and operate multiple businesses that have different risk characteristics use business-specific, or divisional costs of capital? a) not all divisions have equal risk and the firm might accept projects whose returns are higher than are deemed appropriate. b) not all business divisions have equal risk and the firm will likely become less risky in the future. c) not all lines of business have equal risk and it is likely that the firm will accept projects whose returns are unacceptably low in relation to the risk involved. d) use of the same weighted average cost of capital for all divisions may result in too much money being allocated to the least risky division.

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 05:00, vadrian4056
Every 10 years, the federal government sponsors a national survey of health and health practices (nhanes). one question in the survey asks participants to rate their overall health using a 5-point rating scale. what is the scale of measurement used for this question? ratio ordinal interval nominal
Answers: 1
image
Business, 22.06.2019 14:20, deisyy101
Frugala is when sylvestor puts $2,000 into 10-year state bonds and $3,000 into 5-year aaa-rated bonds in steady hand hardware, inc. he buys the four state bonds at a 5 percent interest rate and the three steady hand bonds at a 6.5 percent rate. sylvestor also buys $1,500 worth of blue chip stocks, and $800 worth of stock in a promising new sportswear company that reinvests its earnings in new growth. 1. (a) what is the maturity for each of the bond groups sylvestor buys? (b) the coupon rate? (c) the par value?
Answers: 3
image
Business, 22.06.2019 18:30, thomaskilajuwon
Afarmer is an example of what kind of producer?
Answers: 2
image
Business, 22.06.2019 19:30, dominickstrickland
Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to:
Answers: 1
Do you know the correct answer?
Why should firms that own and operate multiple businesses that have different risk characteristics u...

Questions in other subjects:

Konu
Mathematics, 29.09.2019 12:30
Konu
Mathematics, 29.09.2019 12:30
Konu
Mathematics, 29.09.2019 12:30