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mafiozo [28]
3 years ago
4

Small businesses make less use of DCF capital budgeting techniques than large businesses. This may reflect a lack of knowledge o

n the part of small firms' managers, but it may also reflect a rational conclusion that the costs of using DCF analysis outweigh the benefits of these methods for very small firms.
A. True
B. False
Business
1 answer:
Zinaida [17]3 years ago
8 0

Answer:

The correct answer is True.

Explanation:

The available cash flow model considers that the value of the going concern will be given by the luxury of free available cash that is expected to be generated in the future, discounted at a rate that reflects the risks of the business.

The discounted cash flow analysis revolves around two variables: expected future cash flows and the discount rate. Furthermore, it is noted that the discount rate reflects the inherent risk of investing in a business. Therefore, investors require high returns when the risks are great.

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In what areas is Leslie's underspending<br> hurting her budget?
Jlenok [28]

Leslie's budget is hurting in the areas of transportation, groceries, phone and dining out.                                                                                                                                                    

<u>Explanation:</u>

For transportation, cash is required for every day. So Leslie is spending more on transportation every month. Forgoing back and forth out anyplace she will burn through cash on transportation.  

She is likewise spending cash on goods. Staple goods will be an essential one for living these days. So the financial backing is harming here.  

She is spending another hand on the telephone and eating out. For the telephone, she will energize each month. She will feast out with companions each day.

5 0
2 years ago
Read 2 more answers
The GoT cups are a fast seller and you need to ensure that you have enough rolls of paper to fulfill demand. The first stage in
jarptica [38.1K]

Answer:

EOQ = 414 rolls

Explanation:

In order to calculate the number of orders to minimize the cost, we should calculate that by using the Economic order quantity model.

DATA

Holding cost = $1.75/unit

Annual demand = 500 rolls x 12 = 6000 rolls

Ordering cost = $25

Formula

EOQ =\sqrt{\frac{2Cod}{Ch} }

Where

Co = ordering cost

D = Annual demand

Ch = Holding cost

Solution

EOQ = \sqrt{\frac{2(6000)(25)}{1.75} }

EOQ = \sqrt{\frac{300000}{1.75} }

EOQ = 414 rolls

They should order 414 rolls to minimize the cost.

4 0
2 years ago
Read 2 more answers
When you have carefully checked all the facts and your attitudes and still find that there’s just something about your superviso
Anna11 [10]

Answer:

Your answer to that is try to talk it out with someone and dont hold it in.

Explanation:Have fun and a great day

3 0
2 years ago
The demand for corn has increased in May without any change in supply. Eight months later there still has been no change in corn
kramer

Answer: d. price control.

Explanation:

Price control is a mechanism used by government in order to control price, this is done when government sets a minimum and maximum price for certain goods and services, this is done in order to manage the purchasing power for such goods. Most times government adopt price control system for things like food, energy product, etc. Price control can lead to a situation where there will either be shortage or over supply.

5 0
2 years ago
Read 2 more answers
Interior Airline is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10% per
Oksanka [162]

Answer:

$10

Explanation:

Interior airline is expected to make a dividend payment of $3

The growth rate of the dividend is 10%

The risk free rate of the return is 4%

The expected return on the market portfolio is 13%

The stock beta of interior airline is 4

The first step is to calculate the cost of equity

r= 4% + 4(13%-4%)

r= 4% + 4(9)

r= 4% + 36

r= 40%

Therefore, the value of the stock using the constant growth DMM can be calculated as follows

Value of the stock= 3/(40/100-10/100)

= 3/(0.4-0.1)

= 3/0.3

= $10

Hence the value of the stock is $10

4 0
2 years ago
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