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ser-zykov [4K]
2 years ago
15

Vanguard has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary widel

y in risk, and Vanguard evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk projects at 12%. The company is considering the following projects:Col1 Project A B C DCol2 Risk High Average High Low Col3 Expected Return 15% 12% 11% 9%Which set of projects would maximize shareholder wealth?
Business
1 answer:
Svetradugi [14.3K]2 years ago
8 0

Answer:

The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.

Explanation:

Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).

As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.

On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.

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If the USA could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while Ireland could produce 3 tons of potat
Anuta_ua [19.1K]

Answer:

A. The USA specializes in potatoes because of its comparative advantage in producing potatoes.

Explanation:

US         1 ton of potatoes or 0.5 tons of wheat = 2

Ireland  3 tons of potatoes or 2 tons of wheat = 1,5

8 0
2 years ago
Getting a college degree is a good idea because _____.
Aliun [14]
B. because having a degree could help you with money
5 0
2 years ago
Read 2 more answers
Question 3 Lara Beal allocates wealth between two periods: youth and old age. Currently (in her youth) she has $8,000 in cash. S
Gnesinka [82]

Answer:

The correct answer is "$9450".

Explanation:

Given:

Payoff from investment,

= $6000

Lending to bank,

= 8000-5000

= 3000

Now,

At 15% interest,

The amount to be received from bank will be:

= 3000\times (1+\frac{15}{100} )

= 3000(1+0.15)

= 3000\times 1.15

= 3450 ($)

hence,

In her old age, most she can assume will be:

= 6000+3450

= 9450 ($)

4 0
1 year ago
Spiros is a member of the production design team on a science fiction film called The Future Begins Yesterday. It is a big budge
LiRa [457]

Answer:

A. make Spiros responsible for sourcing wall hangings and window treatments only

Explanation:

Process loss can be said to be an action or deficiency in performance by an individual that prevents a team or group from reaching its potential or achieving its goal within a stipulated time.

The two main factors that contribute to process loss are:

i) Coordination loss: Here, there is too much wait time among all members of the group. Members must coordinate their individual tasks and that of other group members. Too much time is lost here because individuals efficiency differs.

ii) Motivational loss: This happens when individuals of a grouo fail to work as hard as they should. Some individuals may tend to put lesser efforts than their team members, and this leads to loss of team effectiveness in the given task and it affects the results of the group.

Here, Spiro's problem is related to motivational loss, as his efforts do not match that of his teammates'.

There are steps used in addressing process loss.

The best way for Marsha to address spiros' behavior is to make Spiros's task more discrete and identifiable, this involves making Spiro solo responsible for sourcing wall hangings and window treatments only. This will ensure Spiro does not depend on other teammates and he has a solo responsibility which he must fulfill.

8 0
1 year ago
As a new manager, Candace has had to learn a lot, and sometimes her job is more stressful than she expected. As a manager, she n
ExtremeBDS [4]

Answer: disturbance handler; decisional; more through others.

Explanation:

As a new manager, Candace has had to learn a lot, and sometimes her job is more stressful than she expected. As a manager, she needs to fulfill many roles. Candace schedules employees for shifts at the front desk, in the dog play areas, and in the bathing and grooming rooms.

This is part of the disturbance handler role of management, which falls under the decisional component. To adapt to being a manager, Candace has had to get things done by working more through others.

4 0
2 years ago
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