User Account

All Pages

Minimum rate of return a project

Assignment Help Finance Basics
Reference no: EM132775974

The cost of capital is a weighted average of investors' required rates of return. It represents the minimum rate of return a project can earn and still satisfy investors' expectations.

Discuss the following:

Marie LeBlanc is still pondering the acquisition of drilling rigs to her company. She has decided on a mix of debt and equity to raise the necessary capital. As her CFO, your excellent services are called upon, yet again. How would you explain to her what the weighted average cost of capital is and how it is calculated?

Reference no: EM132775974

Questions Cloud

What is the variance of portfolio p : What is the variance of portfolio P if 84% of the portfolio is invested in risky asset A?
Find what would be bond equivalent yield : What would be your bond equivalent yield if you sold the bond for current market price of $1,042? Your bond equivalent yield, if you sold the bond for current
Timing on the mix between the debt and equity capital : How would you, as her CFO, explain the factors of flexibility and timing on the mix between the debt and equity capital?
Review of the professional literature : Review of the professional literature, what conclusions can you reach regarding interventions and barriers associated with telehealth
Minimum rate of return a project : The cost of capital is a weighted average of investors' required rates of return. It represents the minimum rate of return a project can earn and still satisfy
What would be the annual financial advantage : If management decides to buy part Z43 from the outside supplier rather than to continue making the part, what would be the annual financial advantage?
What actions would you take : What actions would you take - How would you respond if you are presented with a subpoena for a client's file?
What is return on equity and earnings per share : What is Return on Equity and Earnings per share and why are they important for investors to know?
Describe a social justice issue : What are some technological tools you could use to address the issue and What are some potential barriers to using the chosen technology

Reviews

Write a Review

Finance Basics Questions & Answers

  Rate of return on bond during the one-year holding period

A fixed-income portfolio manager sets a minimum acceptable rate of return on the bond portfolio at 4.0% per year over the next 3 years.

  Best practices in financial statement

Find companies noted for best practices in Financial Statement Analysis.Describe what these best---practice companies do in the field of Financial Statement Analysis. What are the similarities across companies?

  Explain the relationship between risk and return

Explain the relationship between risk and return. Identify an example of risk and return. Explain which is more risky bonds or common stocks. Explain how understanding risk and return will help you in future business ventures.

  What is jack annualized holding period return

Jack purchased 100 shares of Green Forest Inc. stock of at a price of $157.65 three months ago. He sold all stocks today for $158.57. During this period the stock paid dividends of $5.67 per share. What is Jack's annualized holding period return (..

  Success or failure of a merger

There are many factors that can influence the success or failure of a merger. Prior to merging with another company, managers should consider operational synergy, economies of scale, financial synergy, company valuation, cash flows, and tax saving..

  Determine the price and number of shares outstanding

Calculate the unweighted index using the geometric average and an index value of 1000 at time t. 12. Calculate the return on each of the three indicators in (9) through (11) for the period t to t+1. Please assist me with these Problems. Give the a..

  What is the value of the factory

A factory costs $430,000. You forecast that it will produce cash inflows of $135,000 in year 1, $195,000 in year 2, and $330,000 in year 3. The discount rate is

  Describe how the banks actions would differ

Explain the action that Henri and Lila should expect from the bank regarding their property.Describe how the banks actions would differ

  From the following calculate the current ratio from the

a. from the following calculate the current rationbsprscash-in-hand250000sundry debtors150000stock-in-trade200000sundry

  How much is this stock worth to you

If you require 12 percent rate of return, how much is this stock worth to you?

  Net cash provided by company financing activities

What is the net cash used in investing activities by True Blue? What is the net cash provided by the company's financing activities?

  Explain impact on the profits of the investment bank

If interest rates rise by 0.25 percent, overnight, what will be the impact on the profits of the investment bank?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd