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When firms use multiple sources of capital they need to calculate the appropriate discount rate for valuing their firm's cash flows as?
When firms use multiple sources of capital, they typically calculate the appropriate discount rate using the Weighted Average Cost of Capital (WACC). WACC accounts for the cost of equity and the cost of debt, weighted by their respective proportions in the firm's capital structure. This rate reflects the average return expected by all capital providers, enabling firms to accurately value their cash flows and make informed investment decisions. Using WACC ensures that the risk associated with different funding sources is appropriately considered in financial analysis.
Why tax depreciation usually occur at a much faster rate than book depreciation?
By allowing businesses to depreciate their assets faster, the government (IRS) provides an incentive for firms to replace their assets quicker. This in turn stimulates the economy as firms are spending on capital expenditures more often.
Whole salers are firms that sell driectly to the consumer?
Retailers are firms that sell directly to the consumer, wholesalers are the firms that supply the retailers goods to sale to the consumers.
What are the big four accounting firms?
The largest firms are commonly referred to as "The Big Four." These four firms are: Deloitte and Touche, Ernst and Young, KPMG, and PricewaterhouseCoopers.
How many accounting firms were there in the US in 2000?
In 2000, there were approximately 44,000 accounting firms operating in the United States. This number included a mix of large multinational firms, regional firms, and smaller local practices. The accounting industry has seen significant consolidation since then, leading to a decrease in the total number of firms over the years.
Is a firms cost of capital influenced by net income capital structure or par value of common stock?
Capital structure
What is a place for trading?
Ways by which firms may raise capital.
Who advises firms when raising capital?
For medium to large size companies, firms typically seek the services of an investment bank.
Why must firms make decisions about which goods they will produce?
because firms have access to limited resources of land, labor, and capital
Why are small firms important?
Small firms are important because it helps the beginner businessman to start his business with a limited initial capital investment.
Is there a universal optimal capital structure that would benefit all firms?
best universal capital structure for all companies?
A firms working capital and its cash requirements?
Working capital is considered a fixed asset and is part of the operational capital. Working capital is calculated as current assets minus current liabilities.
In the circular flow model, households supply firms with which of these items?
labor, capital, and resources
A hazard true or false -saving is the income received by firms thay do not pass back to houshold through consumption expenditure?
It is false. ... income received by housholds that do`nt pas back to firms... .
How does an increase in wages affect a firms marginal cost curve?
Bbg
How does fixed sum tax affect firms fixed cost?
they don't
What is capital deepening and how does it contribute to economic growth?
It is the process of increasing the amount of capital per worker. Also it contributes by firms and employees itself.
