Same company cost of capital for evaluating all projects

Assignment Help Financial Management
Reference no: EM131049883

If a firm uses the same company cost of capital for evaluating all projects which of the following is likely?

A. Accepting poor low risk projects

B. accepting poor high risk projects

C. Accepting good high risk projects

D. Both A and C

Reference no: EM131049883

Questions Cloud

Taylor and mclaurin theorem : Taylor's and McLaurin's theorem Derive the Taylor's theorem (1716)
Describe the function of the committee and the roles : Describe the function of the committee and the roles of those in attendance. Describe your observations of the interactions between members of the committee and determine whether the process used to arrive at decisions is a form of shared governan..
Process used in decision sciences models : How is the simulation process used in Decision Sciences models? What are the advantages of using simulation? What are its limitations? How can a simulation model be verified? Give a real world example where using simulation is appropriate.
Security standard deviation beta : Security Standard deviation Beta. Security C has the greatest total risk because it has the largest standard deviation. Security A has the greatest total risk because it has the largest Beta.
Same company cost of capital for evaluating all projects : If a firm uses the same company cost of capital for evaluating all projects which of the following is likely?
Security bring to the risk of a well diversified portfolio : What does a security bring to the risk of a well diversified portfolio?
Find out the intersection points : Do these lines intersect each other or not? If they do then find out the intersection points.
What is the total kinetic energy of the two out coming atoms : The masses of the three atoms are (in order) 214.9986, 210.9873, and 4.0026, all in atomic mass units. (1 atomic mass unit = 1.66 x 10-27kg = 931.5 MeV/c2.) What is the total kinetic energy of the two out coming atoms, in joules and in MeV?
Left side of the equation : Second, solve the equation by first "FOIL"ing the left side, then simplifying by bring all terms to the left side of the equation, and then finally solve using factoring.

Reviews

Write a Review

Financial Management Questions & Answers

  I am looking for thoughtful responses

I am looking for thoughtful responses. So, one word questions (why?) and/or asking for basic information (what is your name?) don't qualify.

  Times-interest-earned ratio

AEI Incorporated has $7 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 11%, and its return on assets (ROA) is 6%. What is AEI's times-interest-earned (TIE) ratio? Round your answer to two decimal places

  If an investor is seeking income during retirement

If an investor is seeking income during retirement, which asset allocation would be the most suitable for them. The investor has a conservative risk tolerance, anticipates 30+ years in retirement, and wants to minimize taxes.

  Fiscal imbalance of social security and medicare programs

If the interest rate is 10%, what is the present discounted value of receiving $100 next year? As of 2006, the present discounted value of the long-run fiscal imbalance of Social Security and Medicare programs is approximately: If debt is a nominal o..

  The sales-to-inventory ratio

The sales-to-inventory ratio:

  Analyzing project that requires an initial investment

Cold Goose Metal Works is analyzing a project that requires an initial investment of $2,750,000. The project's expected cash flows are: Year 1 ($350,000), Year 2 (-100,000), Year 3 (450,000), Year 4 (475,000). The company's WACC is 10%, and the proje..

  Relationship between stock returns and the market returns

Which of the following measures the average relationship between a stock's returns and the market's returns? Coefficient of validation. Standard deviation. Geometric regression. Beta coefficient.

  Some reasons why the interest rate would change

Can you think of some reasons why the interest rate would change? Or better yet, pretend both you and I are going to the same bank today and both want to borrow 10k. Say that I have lousy credit and you have excellent credit. How can a bank play with..

  Forecast turns out to be correct and its price-to-earnings

May Inc. just reported a net income of $8000000 and its current stock price is $34.00 per share. May Inc. is forecasting an increase of 25% of its net income next year, but it also expects it will have to issue 1,500,000 new shares of stock. If May I..

  Increase production at the rate

Cooling Tools Inc. is currently producing 1,477 of small refrigerators per month but the company’s CEO plans to increase production at the rate of 11.00 percent per month until the firm is producing 6,476 of refrigerators per month. How many months w..

  What ytm do these bonds offer

Johanson VI Advisors. Issued $1000 par value bonds a few years ago with a coupon rate of 7 percent, paid semiannually. After the bonds were issued, interest’s rates fell. Now with three years remaining before they mature, the bonds sell for $1,055.08..

  One-way security mirrors for the security industry

ICU inc is a maker of one-way security mirrors for the security industry. The President Seymour Dan Others needs to build a new plant to meet increasing demand.

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