Access to raw materials Diversification Lower production cost All of the above
Which of these statements is true regarding divisional WACC ?
Using a simple firmwide WACC to evaluate new projects would give an unfair advantage to projects that present more risk than the firm ’ s average beta .
Using a divisional WACC versus a WACC for the firm ’ s current operations will result in quite a few incorrect decisions .
Using a firmwide WACC to evaluate new projects would have no impact on projects that present less risk than the firm ’ s average beta .
Using a simple firmwide WACC to evaluate new projects would give an unfair advantage to projects that present less risk than the firm ’ s average beta .
The Rule of 72 is a simple mathematical approximation for __________. the number of years required to double an investment
the payments required to double an investment the present value required to double an investment the number of years required to double an investment the future value required to double an investment
We can estimate a stock ’ s value by __________. using the book value of the total stockholder equity section using the book value of the total assets divided by the number of shares outstanding discounting the future dividends and future stock price appreciation compounding the past dividends and past stock price appreciation