Business, 09.12.2019 22:31 patience233
Yatta net international has manufacturing, distribution, retail, and consulting divisions. projects undertaken by the manufacturing and distribution divisions tend to be low-risk projects, because these divisions are well established and have predictable demand. the company started its retail and consulting divisions within the last year, and it is unknown if these divisions will be profitable. the company knew that opening these new divisions would be risky, but its management believes the divisions have the potential to be extremely profitable under favorable market conditions. the company is currently using its wacc to evaluate new projects for all divisions. if yatta net international does not risk-adjust its discount rate for specific projects properly, which of the following is likely to occur over time? check all that apply. the firm will become less valuable. the firm will accept too many relatively safe projects. the firm will accept too many relatively risky projects. generally, a positive correlation exists between a project’s returns and the returns on the firm’s other assets. if this correlation is , stand-alone risk will be a good proxy for within-firm risk.
Answers: 3
Business, 22.06.2019 04:50
Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?
Answers: 2
Business, 22.06.2019 10:30
You meet that special person and get married. amazingly your spouse has exactly the same income you do 47,810. if your tax status is now married filing jointly what is your tax liability
Answers: 2
Business, 22.06.2019 21:00
Reagan corporation is a wholesale distributor of truck replacement parts. initial amounts taken from reagan's records are as follows:
Answers: 1
Yatta net international has manufacturing, distribution, retail, and consulting divisions. projects...
Computers and Technology, 08.05.2021 16:00
Mathematics, 08.05.2021 16:00
Geography, 08.05.2021 16:00
Mathematics, 08.05.2021 16:00
Spanish, 08.05.2021 16:00
Computers and Technology, 08.05.2021 16:00
Mathematics, 08.05.2021 16:00
Physics, 08.05.2021 16:00
Mathematics, 08.05.2021 16:00
Physics, 08.05.2021 16:00