User Account

All Pages

Evaluate potential market important part of capital project

Assignment Help Finance Basics
Reference no: EM13911805

1. Evaluating the potential market is an important part of the capital project analysis. If there is no market, the chances of success will be minimal so this is something that should be evaluated before any project is started. Do you agree with these remarks?

2. The WACC that should be used in capital budgeting is the firm's marginal, after-tax cost of capital. Why do you think this is a true statement?

3. if a typical U.S. company uses the same cost of capital to evaluate all projects, the firm will most likely become riskier over time, and its intrinsic value will not be maximized. Why do you think this is a correct statement?

Reference no: EM13911805

Questions Cloud

Stocks return is normally distributed and average return : If a stock's return is normally distributed and has an average return of 11% and a standard deviation of 19.5%, what is the lower bound and the upper bound in returns where we would see 95% of the returns?
Describe the location and biological significance : Describe the location and biological significance of myoglobin.
A portion of the current assets section : Analysis of accounts receivable and allowance for bad debts determine ending balances. A portion of the current assets section of the December 31, 2013, balance sheet for Gibbs Co. is presented here:
What is the stocks current value per share : Thomas Brothers is expected to pay a $3.6 per share dividend at the end of the year (that is, D1 = $3.6). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 11%. What is the stock's curr..
Evaluate potential market important part of capital project : Evaluating the potential market is an important part of the capital project analysis. If there is no market, the chances of success will be minimal so this is something that should be evaluated before any project is started. Do you agree with thes..
What is the large cap risk premium given the returns : What is the large cap risk premium given the following returns?
What is the value of k at this temperature : At equilibrium for the reaction H2 (g) + Br2 (g) is revesible arrow 2HBr (g) in a 10 litre vessel was found to contain 2.5 X 10 to the power -3 mole of H2 , 0.150 mole of HBr and 2.8 x 10 to the power-3 mole of BR2. What is the value of k at this ..
Explain the concept of a random variable : Explain the concept of a random variable. Explain how the values of a discrete random variable differ from the values of a continuous random variable.
Purchased a zero-coupon bond one year ago : You purchased a zero-coupon bond one year ago for $281.33. The market interest rate is now 7 percent. If the bond had 19 years to maturity when you originally purchased it, what was your total return for the past year?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  United-continental airline merger

Research United and Continental Airline merger, measure the challenges experienced during the merger and resulting impact to the business.

  Determine purchased during the third quarter

A manufacturing corporation manufactures a product called Formido. Each unit of Formido requires two pounds of Lima. The budget calls for production of 8,000 units of Formido during the third quarter.

  Compute the cash flows to investors from operating activity

Assume that the firm has a tax rate of 35 percent. Compute the cash flows to investors from operating activity.

  Your uncle plans to leave you an inheritance of 200000 if

your uncle plans to leave you an inheritance of 200000. if his life expectancy is twenty yearsand the annual rate of

  Alternatives would you be least likely to select

if you were a treasurer for a fortune 1000 corporation who has responsibility for investing excess cash balances, which of the following alternatives would you be least likely to select? A commercial paper, B common stock , C bankers acceptanc..

  What is the amount of the dividends paid

For the year, Movers United has net income of $31,800, net new equity of $7,500, and an addition to retained earnings of $24,200. What is the amount of the dividends paid?

  What are the reasons that caused a decline in the shares

What are the reasons that caused a decline in the shares of depository institutions and increased in the shares of investment companies?

  Discuss cost of capital in terms of the financing costs to

explain cost of capital in terms of the financing costs to the corporations. include a detailed explanation of the

  Determine the receivables turnover in each year

Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2010 and $1,200,000 in 2011.

  Today you deposit 2400 in a bank account that pays 4

today you deposit 2400 in a bank account that pays 4 percent simple interest. how much interest will you earn over the

  Discuss the pros and cons associated with debt

Discuss the pros and cons associated with debt financing when compared to equity financing. use examples specific to the health care industry to support your response.

  Derive consumers demand functions

Let the competitive equilibrium prices be p1 and p2 respectively and derive both consumers' demand functions for both goods.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd