Business, 04.12.2019 06:31, jamarcusweverjr1133
Yatta net has manufacturing, distribution, retail, and consulting divisions. projects undertaken by teh manufacturing and distribution divisions tend to be low-risk projects, because these divisions are well established and have predictable demand. the company started its retail and consulting divisions with the last year, and it is unknown if these divisions will be profitable. the company knew that opening these new divisions would be risky, but its management beleives the divisions have the potential to be extremely profitable under favorable market conditions. the company is currently using its wacc to evaluate new projects for all divisions.
if yatta net does not risk-adjust its discount rate for specific projects properly, which of the following is likely to occur over time? check all that apply
0 the firm will become less valuable
0 the firm will accept too many relatively risky projects
0 the firm will accept too many relatively safe projects
generally, a positive correlation exists between a project's returns and the returns on the firm's other assets. if this correlation is ( low or stand-alone risk will be a good proxy for within-firm risk.
consider the case of another company. davis print is evaluating two mutually exclusive projects. they both require a $1 million inveestment today and have expected npvs of $200,000. management conducted a full risk analysis of these two projects, and teh results are shown below.
risk measure project a project b
standard deviation of project's expected npvs $80,000 $40,000
project beta 1.2 1.4
correlation coefficient of project cash flows 0.7 0.9
which of the following statements about these projects' risk is correct? check all that apply
0 project a has more corporate risk than project b
0 project a has more market risk than project b
0 project b ahs more stand-alone risk than project a
0 project b has more market risk than project a
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 17:50, ratpizza
Abc factory produces 24,000 units. the cost sheet gives the following information: direct materials rs. 1,20,000direct labour rs. 84,000variable overheads rs. 48,000semi variable overheads rs. 28,000fixed overheads rs. 80,000total cost rs. 3,60,000presently the product is sold at rs. 20 per unit. the management proposes to increase the production by 3,000 units for sales in the foreign market . it is estimated that semi variable overheads will increase by rs. 1,000. but the product will be sold at rs. 14 per unit in the foreign market. however, no additional capital expenditure will be incurredq-1. what is present profit of the company ? q-2. what is proposed profit of the company in new market? q-3.what is suggestion for new makret proposal whether proposal accept or not
Answers: 1
Business, 23.06.2019 17:00, oliviaciscooc
Flounder supply company, a newly formed corporation, incurred the following expenditures related to land, to buildings, and to machinery and equipment. abstract company’s fee for title search $1,066 architect’s fees 6,499 cash paid for land and dilapidated building thereon 178,350 removal of old building $41,000 less: salvage 11,275 29,725 interest on short-term loans during construction 15,170 excavation before construction for basement 38,950 machinery purchased (subject to 2% cash discount, which was not taken) 112,750 freight on machinery purchased 2,747 storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,469 new building constructed (building construction took 6 months from date of purchase of land and old building) 994,250 assessment by city for drainage project 3,280 hauling charges for delivery of machinery from storage to new building 1,271 installation of machinery 4,100 trees, shrubs, and other landscaping after completion of building (permanent in nature) 11,070 instructions determine the amounts that should be debited to land, to buildings, and to machinery and equipment. assume the benefits of capitalizing interest during constructionexceed the cost of implementation. indicate how any costs notdebited to these accounts should be recorded.
Answers: 2
Business, 23.06.2019 18:00, derick263
Madalyn works in a career that involves patrolling a warehouse and monitoring the camera alarm system. robert works in a career that involves observing and arresting crime suspects. which career pathway matches each person? a. madalyn works in law enforcement services, and robert works in security and protective services. b. madalyn works in security and protective services, and robert works in corrections services. c. madalyn works in security and protective services, and robert works in law enforcement services. d. madalyn works in corrections services, and robert works in law enforcement services.
Answers: 1
Do you know the correct answer?
Yatta net has manufacturing, distribution, retail, and consulting divisions. projects undertaken by...
Questions in other subjects:
Mathematics, 21.10.2019 19:20
Mathematics, 21.10.2019 19:20
Mathematics, 21.10.2019 19:20
Mathematics, 21.10.2019 19:20
Mathematics, 21.10.2019 19:20
Mathematics, 21.10.2019 19:20
