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I am Lyosha [343]
2 years ago
15

Kurt, who is a divisional manager, continually brags that his division’s required return for its projects is 1 percent lower tha

n the return required for any other division of the firm. Which one of the following most likely contributes the most to the lower rate requirement for Kurt’s division?
A.Kurt tends to overestimate the projected cash inflows on his projects.
B.Kurt tends to underestimate the variable costs of his projects.
C.Kurt has the most efficiently managed division.
D.Kurt’s division is less risky than the other divisions.
E.Kurt’s projects are generally financed with debt while the other divisions’ projects are financed with equity.
Business
1 answer:
Viefleur [7K]2 years ago
3 0

Answer:

D. Kurt’s division is less risky than the other divisions.

Explanation:

Based on the information provided within the question it can be said that the most likely reason is that Kurt’s division is less risky than the other divisions. Just as the saying goes "the greater the risk, the greater the reward", the same goes for the opposite, the lower the risk that a division has to undertake the lower the percent for the required return.

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Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200
Tomtit [17]

Answer:

The expected return of your portfolio is 6.02%

Explanation:

Stock     Value     Expected Rate of return   Weightage

  A          $200                   8%                      $200/$300 = 0.67

  B          $100                    2%                      $100/$300 = 0.33

Expected Rate of return = ( Expected rate of return Stock A x Weightage of Stock A ) + ( Expected rate of return Stock B x Weightage of Stock B )

Expected Rate of return = ( 8% x 0.667 ) + ( 2% x 0.33 )

Expected Rate of return = 0.0536 + 0.0066 = 0.0602 = 6.02%

3 0
1 year ago
Patricia Nall was approved for a $3,000, two-year, 11 percent loan with the finance charges figured using the discount method. H
Luba_88 [7]

Answer:

$2,340

Explanation:

The computation of cash received from this loan is shown below:-

cash received from this loan = Approved amount - (Approved amount × Two year × Percentage of loan )

= Approved amount - ($3,000 × 2 × 11% )

= $3,000 - ($3,000 × 2 × 0.11 )

= $3,000 - $660

= $2,340

Therefore, for computing the cash will Patricia receive from this loan we simply applied the above formula.

4 0
2 years ago
4: In 2013, the United States Postal Service charged $0.46 to mail a letter weighing up to 1 oz. and $0.20 per ounce for each ad
Gekata [30.6K]

Answer:

The function that would determine the cost in dollars, c(z), of mailing a letter weighing z ounces is (0.46 + 0.20z)

Explanation:

Weight of the letter = z ounces (z is an integer greater than 1)

cost to mail a letter weighing 1 ounce = $0.46

cost to mail an additional ounce = $0.20

cost to mail z additional ounces = z × $0.20 = $0.20z

Total cost of mailing a letter weighing z ounces = $0.46 + $0.20z

Therefore, cost function, c(z) = 0.46 + 0.2z

6 0
2 years ago
Read 2 more answers
Slotnick Chemical received $230,000 from customers as deposits on returnable containers during 2018. Ten percent of the containe
sesenic [268]

Answer:

$20,909.09

Explanation:

We have been given that Slotnick Chemical received $230,000 from customers as deposits on returnable containers during 2018. 10% of the containers were not returned. The deposits are based on the container cost marked up 10%.

The price after mark-up would be 100\%+10\%=110\%

To find the profit on the forfeited deposits, we will divide $230,000 times 10% by 110% as:

\text{Profit on the forfeited deposits}=\frac{\$230,000\times 10\%}{110\%}

\text{Profit on the forfeited deposits}=\frac{\$230,000}{11}

\text{Profit on the forfeited deposits}=\$20,909.0909

\text{Profit on the forfeited deposits}\approx \$20,909.09

Therefore, Slotnick realize a profit of $20,909.09 on the forfeited deposits.

7 0
2 years ago
Edmond, the CEO of Hartman Manufacturing, said to his new vice president of accounting, "In the past I had resistance to new ide
rodikova [14]

Answer:

A.

Explanation:

Based on the information provided within the question it can be said that this is many times a necessary part of strategy implementation. This term refers to the process which a company undergoes in order to begin putting the chosen plans and strategies into action with the hopes of achieving the desired goal. This process many times requires situations like the one in question to be handled.

6 0
2 years ago
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