Business, 26.12.2019 22:31, j1theking18
The macmillen company has equal amounts of low-risk, average-risk, and high-risk projects. the firm’s overall wacc is 12%. the cfo believes that this is the correct wacc for the company’s average-risk projects, but that a lower rate should be used for lower-risk projects and a higher rate for higher-risk projects. the ceo disagrees, on the grounds that even though projects have different risks, the wacc used to evaluate each project should be the same because the company obtains capital for all projects from the same sources. if the ceo’s position is accepted, what is likely to happen over time? 1. the company will take on too many high-risk projects and reject too many low-risk projects.2. the company will take on too many low-risk projects and reject too many high-risk projects.3. things will generally even out over time, and, therefore, the firm's risk should remain constant over time.4. the company's overall wacc should decrease over time because its stock price should be increasing.5. the ceo's recommendation would maximize the firm's intrinsic value.
Answers: 2
Business, 21.06.2019 19:20, GreenHerbz206
You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. the rate on treasury bills is 6%. your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a t-bill money market fund. what is the expected return and standard deviation of return on your client’s portfolio?
Answers: 1
Business, 22.06.2019 19:10, soevse
Fortress international, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. aside from this, the company does not solely depend on outside distributors to reach its customers. in fact, it has its own retail stores to distribute its products. in this scenario, which of the following alternatives to vertical integration is fortress international applying? a. concentric integration b. taper integration c. horizontal integration d. conglomerate integration
Answers: 1
Business, 22.06.2019 20:30, alyssanewsome
The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.
Answers: 3
The macmillen company has equal amounts of low-risk, average-risk, and high-risk projects. the firm’...
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