Explain why the cost of capital for a firm is equal to the expected rate of return
Question:
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
If we view the firm as a conduit for the cash flows pro...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Question Posted:
Students also viewed these Corporate Finance questions
-
Explain why the cost of capital for a U.S.-based MNC with a large subsidiary in Brazil is higher than for a U.S.-based MNC in the same industry with a large subsidiary in Japan. Assume that the...
-
The weighted average cost of capital for a firm (assuming all three Modigliani and Miller assumptions apply) is 15 percent. What is the current cost of equity capital for the firm if its cost of debt...
-
Explain why the cost of ownership may be lower with a cloud database than with a traditional, company database.
-
Ted and Joan Kramer have assets of $290,000 and are planning for Joan to enter a nursing home. The Kramers would like to apply for Medicaid benefits to pay for Joan's care. What should they do to...
-
As the representative of the local accounting club, you have been asked by the dean to help her understand the costs of the different degrees offered at the school. You decide to use an...
-
What is activity-based depreciation? How does activity-based depreciation differ from declining-balance depreciation? For what type of assets is activity-based depreciation most likely to be used?
-
Impact of vitamin-B supplement. In the Journal of Nutrition (July 1995), University of Georgia researchers examined the impact of a vitamin-B supplement (nicotinamide) on the kidney. The experimental...
-
Recognizing cash flows for capital investment projects, NPV. Met-All Manufacturing manufactures over 20,000 different products made from metal, including building materials, tools, and furniture...
-
General City's general fund reported a supplies inventory costing $200,000 at the beginning of the fiscal year. During the year, General City purchased materials and supplies on account for...
-
1. In which leadership trait or characteristic does Brittany seem to need the most development? 2. How would you rate Brittany's warmth and enthusiasm as a leader? 3. What action do you recommend...
-
Explain why the total value of all of the securities used to finance a firm must be equal to the value of the firm.
-
You know that the after-tax cost of debt capital for Bubbles Champagne is 7 percent. If the firm has only one issue of five-year bonds outstanding, what is the current price of the bonds if the...
-
Both iGAAP and U.S. GAAP require footnote disclosure of operating lease payments. Are there any differences in the information provided to statement readers in these disclosures? Explain.
-
Consider: x3 + c (x 1)(x 3)(x + 1) (x + 3x + 9) (x + 2x + 5) How many partial fractions are there in the partial fraction decomposition of this function? How many unknowns (A, B, ...) must be...
-
Hand trace the following program. 1 y 0 2 for x in range (5): y = y + x 4 print ("x",x, "and y =", y) Note: You can shorten the prompts in your hand trace if you want to.
-
Determine the location using physics calculations to solve the problem. Show step by step details for how you solved the problem. I don't need an explanation explaining how to solve the problem. T By...
-
Give a brief explanation about the organization/company i.e., the products or services, number of employees, etc. Do a SWOT chart to help organize your ideas. Refer to resources in the reading for an...
-
How are organization "formal" and "informal" structures impacted in organizational change? Provide some examples. Compare and contrast Lewin's Change Model with Kotter's Change model. (Show how they...
-
What is meant by the term cost ofgoods manufactured? Why does this item appear on an income statement? LO1.
-
QUESTION 9 HC-O-C-R R-C-O-CH HC-O-P-O-CH-CH-NH3* O || O a. Phosphatidic acid, Serine O b. Lysophosphatidic acid, Serine, Free FA O c. Lysophosphatidylserine, Free FA O d. 2 Free FAs, Serine, Glycerol...
-
Find p-1. +1 I + S s (5+9)
-
In the previous problem, suppose you want only $750 total in dividends the first year. What will your homemade dividend be in two years?
-
Rudolph Corporation is evaluating an extra dividend versus a share repurchase. In either case, $11,000 would be spent. Current earnings are $1.40 per share, and the stock currently sells for $58 per...
-
As discussed in the text, in the absence of market imperfections and tax effects, we would expect the share price to decline by the amount of the dividend payment when the stock goes ex dividend....
-
4 Exercise 9-6 (Algo) Lower of cost or market [LO9-1) 75 Tatum Company has four products in its inventory. Information about the December 31, 2021, Inventory is as follows: oints Product Total Cost...
-
A real estate investment is expected to return to its owner $3,500 per year for 16 years after expenses. At the end of year 16, the property is expected to be sold for $49,000. Assuming the required...
-
You borrowed $15,000 for buying a new car from a bank at an interest rate of 12% compounded monthly. This loan will be repaid in 48 equal monthly installments over four years. Immediately after the...
Study smarter with the SolutionInn App