Using the weighted average cost of capital as the required rate of return for every project will
A) cause a firm to accept projects that were too risky.
B) cause a firm to reject projects that should have been accepted.
C) result in maximization of shareholder wealth.
D) A and B above
D
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Which of the following statements is CORRECT?
A. When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A0*/S0 and L0*/S0) vary from year to year in a stable, predictable manner. B. When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow. C. Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process. D. For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets. E. Regression techniques cannot be used in situations where excess capacity or economies of scale exist.
In today's market environment, you might pay $16 for a vinyl LP record by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?
A. $10.25 B. $4.00 C. $5.10 D. $8.00 E. $12.75
Identify at least three questions that office professionals begin to ask themselves when they identify a need for effective time management tools and strategies
What will be an ideal response?
Andrea Mitchell can shift income to her daughter, Lynn, by endorsing a check for $10,000 received for a client over to Lynn.
Answer the following statement true (T) or false (F)