Business, 13.01.2022 14:50, brutalgitaffe

Old Town Industries has three divisions. Division X has been in existence the longest and has the most stable sales. Division Y has been in existence for five years and is slightly less risky than the overall firm. Division Z is the research and development side of the business. When allocating funds, the firm should probably:. i. require the highest rate of return from division X since it has been in existence the longest.
ii. assign the highest cost of capital to division Z because it is most likely the riskiest of the three divisions.
iii. use the firm's WACC as the cost of capital for division Z as it provides analysis for the entire firm.
iv. use the firm's WACC as the cost of capital for divisions A and B because they are part of the revenue-producing operations of the firm.
v. allocate capital funds evenly amongst the divisions to maintain the current capital structure of the firm.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 05:50, tinydesb

Emily spent her summer vacation in buenos aires, argentina, where she got plastic surgery for a fraction of what it would cost in the united states. this is an example of:

Answers: 2

continue

Business, 22.06.2019 08:30, bartonamber4042

What has caroline's payment history been like? support your answer with two examples

Answers: 3

continue

Business, 22.06.2019 11:40, taylor825066

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x, y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.

Answers: 3

continue

Business, 22.06.2019 17:50, Senica

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?

Answers: 1

continue

Do you know the correct answer?

Old Town Industries has three divisions. Division X has been in existence the longest and has the mo...