This topic contains a solution. Click here to go to the answer

Author Question: Explain what is meant by the weighted cost of capital and how it is used in capital budgeting. ... (Read 63 times)

darbym82

  • Hero Member
  • *****
  • Posts: 570
Explain what is meant by the weighted cost of capital and how it is used in capital budgeting.
 
  What will be an ideal response?

Question 2

New smartphone applications are developed to help consumers find the cheapest prices in the neighborhood. Therefore,
 
  A) the local competitive will become more intensive.
  B) the prices of goods listed in the application will be lowered.
  C) price discrimination will occur against consumers without a smartphone or this application.
  D) All of the above.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

macmac

  • Sr. Member
  • ****
  • Posts: 343
Answer to Question 1

The proportion of each type of financing (debt, equity and retained earnings) in the firm's capital structure, and applying these percentages to the opportunity costs of capital associated with financing a prospective capital outlay. This weighted average of the opportunity cost of capital then is used to discount projected cash flows back to a net present value.

Answer to Question 2

D




darbym82

  • Member
  • Posts: 570
Reply 2 on: Jul 1, 2018
Excellent


juliaf

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

For a complete list of videos, visit our video library