subject
Business, 22.04.2020 00:40 sunny3799

Old Town Industries has three divisions. Division X has been in existence the longest and has the most stable sales. Division Y has been in existence for five years and is slightly less risky than the overall firm. Division Z is the research and development side of the business. Given this, the firm should probably :a. require the highest rate of return from Division X since it hos been in existence the longest b. assign the highest cost of capital to Division Z because it is most likely the riskiest of the three divisions c. use the firm's WACC as the cost of capital for Division Z as it provides analysis for the entire firm. d. use the fim's WACC as the cost of capital for Divisions e. allocate captal funds evenly amongst the divisions to maintain the current capital structure of the firm A and B because they are part of the revenue-producing operations of the firm.

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 15:30, samiyahbass
What is "staffing level"? a) the practice of assigning the same number of workers to each department b) the average educational level attained by employees of a business c) the rank above cashier d) the number of workers assigned to jobs at a particular time
Answers: 2
image
Business, 22.06.2019 09:00, jamesgraham577
Afood worker has just rinsed a dish after cleaning it. what should he do next?
Answers: 2
image
Business, 22.06.2019 17:30, harshakayla02
According to management education expert ashok rao, companies can increase their profitability by through careful inventory management. a. 5% to 10% b. 10% to 25% c. 20% to 50% d. 75%
Answers: 1
image
Business, 22.06.2019 17:50, primmprincess312
Which of the following statements is true of unsought products? as compared to convenience products, unsought products are purchased more frequently. unsought products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. a life insurance policy is an example of an unsought product. unsought products have strong brand identification for which a significant group of buyers is willing to make a special purchase effort. unsought products are those products purchased for further processing or for use in conducting a business.
Answers: 2
You know the right answer?
Old Town Industries has three divisions. Division X has been in existence the longest and has the mo...

Questions in other subjects: