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Yakvenalex [24]
2 years ago
10

For capital budgeting and cost of capital purposes, the firm should always consider retained earnings as the first source of cap

ital (i.e., use these funds first) because retained earnings have no cost to the firm.A. True.B. False.
Business
1 answer:
zmey [24]2 years ago
8 0

Answer:

False

Explanation:

Even though the main reason why a corporation should hold retained earnings is to use them as a source of capital, it doesn't mean that retained earnings don't have any cost associated with them.

The cost of holding retained earnings is the rate of return that shareholders require on the corporation's stock.

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Terrell has an employer-sponsored 401(k) plan that he contributes to, and his employer matches 25% of his 401(k) contributions.
Elza [17]
The answer is 6250 buddy.

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2 years ago
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Creative accountant who DIY their own accounting system go to jail. True or false
Elza [17]

Answer:

true

Explanation:

3 0
2 years ago
Motorist has a flat tire and is in the process of changing it. one of the lug nuts is very tight and he is trying to remove it.
Lostsunrise [7]
<span>Actually motorist best approach here is to trying to figure out the correct removing rotation of lug nuts, then rotate in that direction it smoothly as possible by applying some oil or grease,which will surely do the need of the motorist to change the flat tire safely, instead of pushing or pulling it hard, which not solve the problem at all even after lot of time and energy,</span>
4 0
2 years ago
Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each of the next 20 years.
Effectus [21]

Answer:

The amount to be paid for the contract today = $220,908.32

Explanation:

<em>The amount to be paid for the contract today will be equal to the present value of the annuity of $22,500 payable for 20 years discounted at a rate of 8% per annum.</em>

Present Value = A ×( 1 - (1+r)^(-n))/r

A- 22,500, r- rate of return - 8%, n -no of years 20 years

PV = 22,500 ×( 1-(1.08)^(-20) )/ 0.08

PV = 22,500 ×9.8181

PV = $220,908.32

The amount to be paid for the contract today = $220,908.32

7 0
2 years ago
"Our business needs a steady supply of raw milk," said Beatrice Gomez, CEO of Bea's Ice Cream, "But Holly Dairy Farms is unable
kenny6666 [7]

Answer:

vertical integration strategy

Explanation:

In supply chain management, vertical integration refers to expanding the company's operations to either include some of its vendors, distributors and retailers, or both. This way, the company will be able to control the upstream of the supply chain management (vendors) and/or the downstream (distributors and retailers).

In this case, Beatrice is advocating for a vertical integration strategy in order for the company to expand into dairy farms. This way they company will control the supply of raw milk.

3 0
2 years ago
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