How would you feel as an investor in a company that utilizes

Assignment Help Finance Basics
Reference no: EM131131933

One way to avoid the EPA penalties for excessive air pollution is to use carbon credits. Carbon credits are a tradable permit scheme that allows businesses that cannot meet their greenhouse- gas-emissions limits to purchase carbon credits from businesses that are below their quota. By allowing credits to be bought and sold, a business for which reducing its emissions would be expensive or prohibitive can pay another business to make the reduction for it.

Do you agree with this arrangement? How would you feel as an investor in a company that utilizes carbon credits to legally exceed its pollution limits?

Reference no: EM131131933

Questions Cloud

What effect would an increased cost of capital have : What effect would an increased cost of capital have on a firm's future investments? Asbestos, once widely used in manufacturing and construction for its strength, durability, and resistance to heat and fire, remains the subject of lawsuits. Following..
What type of document is needed for a partnership : What type of document is needed for a partnership, and what should this document contain?
Journalize the withdrawal of spade under each : Each of the remaining partners agrees to pay $15,000 in cash from personal funds to purchase Spade's ownership equity. Each receives 50% of Spade's equity.
The total bonus to the old partners : Andy's capital balance is $24,000 after admitting Ellen to the partnership by investment. If Andy's ownership interest is 24% of total partnership capital, what were (1) Ellen's cash investment and
How would you feel as an investor in a company that utilizes : Do you agree with this arrangement? How would you feel as an investor in a company that utilizes carbon credits to legally exceed its pollution limits?
Post to the cash and capitalaccounts : The partners in Apache Company decide to liquidate the firm when the balance sheet shows the following.
Journalize the entry to record the division of net income : Net income is $37,000. Each partner is allowed interest of 10% on beginning capital balances. Kirk is given an $20,000 salary allowance. The remainder is shared equally.
What issues and what benefits can the user derive : A Monte Carla simulation program requires the user to first build an Excel spreadsheet model that captures the input variables for the proposed project. What issues and what benefits can the user derive from this process?
Journalize the additional cash investment by each partner : Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the npv of the most profitable project

Project Y has an expected life of 4 years with after-tax cash inflows of $4,000 at the end of each of the next 4 years. The firm's WACC is 8%. Use the replacement chain to determine the NPV of the most profitable project.

  How do the constant growth valuation model

How do the constant-growth valuation model and capital asset pricing model methods for finding the cost of common stock differ?

  Compute the incremental net income of the investment

The Best Manufacturing Corporation is planning a new investment. Financial projections for the investment are tabulated below. Cash flows are in $ thousands, and corporate tax rate is 34%.

  Shareholder value analysis notes and exercise

Shareholder Value Analysis (SVA) is one member of the family of techniques for determining the market value of a firm based on the drivers of its projected cash flows. Other cash-based techniques include Cash Flow Return on Investment (CFROI) a..

  Which of the following forms of organizations have earnings

1- limited partnerships are not as prevalent as corporations because1.nbspnbspnbsp limited partners can lose up to

  What is the current share price

If the required return is 11 percent and the company just paid a dividend of $1.45, what is the current share price?

  Time value comparisons of single amounts-in exchange for a

time value comparisons of single amounts-in exchange for a 20000 payment today a well known company will allow you to

  What is your book debt-asset ratio

You have made regular monthly payments and periodic repairs that have kept the book value of your home at $200,000. Assuming the home is your only asset, what is your book debt-asset ratio?

  Table below provide data on two stocks

Table below provide data on two stocks, Victoria and Houston. The risk free rate is 4% and the historical market risk premium corresponding to this risk free rate is 6%. a. Estimate the expected return for each company according to CAPM; use histori..

  What is the company cost of equity

The Lo Tech Co. just issued a dividend of $2.90 per share on its common stock. The company is expected to maintain a constant 8percent growth rate in its dividends indefinitely. If the stock sells for $43.70 a share, what is the company's cost of e..

  Should the old milling machine be replaced

A bank loan arranged at the local bank would cost the company 12% per annum. If the company took out this loan, its leverage would be higher.

  What is the npv of accepting the system

What will be the annual net savings? Assume that the T-bill rate is 2.6 percent annually.

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!

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