How can the WACC be both an average cost and a marginal cost?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
The WACC is an average cost because it is a weig...View the full answer
Answered By
Simon kingori
I am a tier-one market researcher and content developer who has been in this field for the last six years. I’ve run the freelancing gamut; from market research, data mining and SEO/SMM to copywriting, Content Development, you name it, I’ve done it. I’m extremely motivated, organized and disciplined – you have to be to work from home. My experience in Freelancing is invaluable- but what makes me a cut above the rest is my passion to deliver quality results to all my clients- it’s important to note, I've never had a dissatisfied client. Backed by a Masters degree in Computer Science from MOI university, I have the required skill set and burning passion and desire to deliver the best results for my clients. This is the reason why I am a cut above the rest. Having taken a Bsc. in computer science and statistics, I deal with all round fields in the IT category. It is a field i enjoy working in as it is dynamic and new things present themselves every day for research and exploration.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Question Posted:
Students also viewed these Corporate Finance questions
-
Under what assumptions can the WACC be used to value a project?
-
The distinction between marginal and average cost can be made with some simple algebra. Here are three total cost functions: i. TC = 10q ii. TC = 40 + 10q iii. TC = - 40 + 10q: a. Explain why all...
-
How can the historical average cost and marginal cost of funds approaches be used to help select assets (such as loans) that a depository institution might wish to acquire?
-
Derek and Wes take a photograph of a lake at the same angle and the same time of day. Derek's picture comes out with crisp edges around objects in the photo. Wes's picture seems to blur the outlines...
-
There are two errors in the following trial balance: (1) One account has been placed in the wrong column, (2) There is a transposition error in the balance of the L. Bourque, Capital account. Explain...
-
If a company owns many business locations (for example, many store locations), and in the aggregate they could cause material misstatements to the financial statements, the auditor would need to...
-
Which of the following statements is true with regard to the gross profit ratio? 1. An increase in cost of goods sold would increase the gross profit ratio (assuming sales remain constant). 2. An...
-
The client, Mr. David Keys, would like to know what state law provides concerning the removal of a director from the board of directors of a corporation. Prepare an information letter to Mr. Keys...
-
\f
-
Registration at Southern University has always been a time of emotions, commotions, and lines. students must move among 4 stations to complete the process. last semester's registration is in fig....
-
VolWorld Communications Inc., a large telecommunications company, is evaluating the possible acquisition of Bulldog Cable Company (BCC), a regional cable company. VolWor1d?s analysts project the...
-
How would each of the factors in the following table 3 affect a firm's cost of debt, rd(1 - T); its cost of equity, rs; and its weighted average cost of capital, WACC? Indicate by a plus (+), a minus...
-
What is the solution set of the equation? A) 2 B) 0 C) 2 D) There is no solution to the equation. 1 2 X X-2 -4 1 - 2x 2 X
-
5. How would strategic planning for human resources differ if Scerba were hired by a sports organization that did not have a temporary workforce? (4 pts)
-
Should firms begin their strategic planning process by setting vision and mission and then go on to analyze its environment? Or, should firms first consider their environment and then shape vision...
-
5. Write an equation of a line through (-3,-5), perpendicular to + y = 1.
-
Dr. Aishah is an information technology (IT) consultant for system development. She is currently conducting a preliminary investigation of a new system development for Maju Sdn. Bhd. In order to...
-
One of your salespeople, Heather, is leasing a newly renovated three-storey property that has two office suites on each floor, totalling 6 office suites. Four of the suites are now leased and Heather...
-
Policy conditions require that if the insured does not comply with the conditions of the policy, forfeiture of the policy and nonpayment of claims against it could result.
-
You are standing on the top of a building and throw a ball vertically upward. After 2 seconds, the ball passes you on the way down, and 2 seconds after that, it hits the ground below. a. What is the...
-
Assume the Black-Scholes framework. Consider a special forward start option which, 2 years from today, will give its owner a 1-year 100-strike European gap call option whose payment trigger is equal...
-
A mortgage company offers to lend you $85,000; the loan calls for payments of $8,273.59 per year for 30 years. What interest rate is the mortgage company charging you?
-
To complete your last year in business school and then go through law school, you will need $10,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $10,000 one...
-
While Mary Corns was a student at the University of Tennessee, she borrowed $12,000 in student loans at an annual interest rate of 9 percent. If Mary repays $1,500 per year, how long, to the nearest...
-
Issuing Common Stock Thoman Products, Inc., sold 2 0 , 7 0 0 shares of common stock to stockholders at the time of its incorporation. Thoman received $ 2 4 . 4 0 per share for the stock. Required:...
-
Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials ( 5 kilograms \ times $ 1 2...
-
Question 2 4 ( 4 points ) Subledger accounts, such as vendors and customers are linked directly to the general ledger. What G / L accounts provide this integration? Primary Cost Reconciliation...
Study smarter with the SolutionInn App