1. Choose all of the correct items that you think companies would consider when choosing a MARR for a particular project: Group of answer choices A. Their cost of borrowing money from a bank B. Their cost that their financial team thinks they can issue new bonds C. The prevaling rates of return of their competitors stock D. The relative risk of this particular project   2. Procter and Gamble reports a large number of financial metrics  including ratios like Return on Equity, and Gross Margin, and many others.  What are some reasons that they report these metrics? (Mark all that are correct) Group of answer choices A. They want to have a way of comparing their performance against their competitors . B. They want to see if their total sales went up, but their costs went up even more so their profitability decreased C. They want to see before COVID and after COVID financial ratios to see what impact it had on their finances D. They want to determine if they are meeting their goals for Return on Invested Capital E. They want to determine if

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 2.5CE: Energy entrepreneur T. Boone Pickens has proposed converting the trucking fleet in the United States...
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1. Choose all of the correct items that you think companies would consider when choosing a MARR for a particular project:

Group of answer choices

A. Their cost of borrowing money from a bank

B. Their cost that their financial team thinks they can issue new bonds

C. The prevaling rates of return of their competitors stock

D. The relative risk of this particular project

 

2. Procter and Gamble reports a large number of financial metrics  including ratios like Return on Equity, and Gross Margin, and many others.  What are some reasons that they report these metrics? (Mark all that are correct)

Group of answer choices

A. They want to have a way of comparing their performance against their competitors .

B. They want to see if their total sales went up, but their costs went up even more so their profitability decreased

C. They want to see before COVID and after COVID financial ratios to see what impact it had on their finances

D. They want to determine if they are meeting their goals for Return on Invested Capital

E. They want to determine if they should adopt a policy of a 4-day work week

 

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Introduction,

The standard minimum rate of come, conjointly referred to as the hurdle rate, is that the minimum rate of come on a project that a manager or firm is willing to just accept before embarking on that, taking into consideration the project's risk and therefore the cost of preceding alternative ventures. The words "assigns rate of interest" and "minimum engaging rate of return" area unit substitutable.

The obstacle rate is commonly used interchangeably with the terms cutoff rate, benchmark, and value of capital. It's getting used to conduct preliminary analysis of planned comes, and it rises in proportion to the extent of risk.

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