Business, 22.06.2019 10:20 michaelwarren8728

Which of the following statements about a not-for-profit firm’s cost of capital estimate is most correct? a. since a not-for-profit firm has no shareholders, its wacc estimate does not include a cost of equity (fund capital) estimate. b. the capital structure weights for a not-for-profit firm are set at 50/50, because such firms can raise $1 of debt financing for each dollar of retained earnings. c. the cost of tax-exempt debt issued by not-for-profit firms is increased (“grossed up”) by 1 - t in the wacc estimate to reflect the fact that such firms do not pay taxes. d. equity (fund) capital has a cost that is roughly equivalent to the cost of retained earnings to similar investor-owned companies. e. none of above is correct.

Answers: 2

Another question on Business

Business, 22.06.2019 01:40
On october 1, 2018, santana rey launched a computer services company called business solutions, which provides consulting services, computer system installations, and custom program development. rey adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on december 31, 2018. the company's initial chart of accounts follows.
Answers: 1
Business, 22.06.2019 02:50
Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks
Answers: 2
Business, 22.06.2019 05:00
Idon't under stand the economic worksheet our teacher gave us.
Answers: 2
Business, 22.06.2019 08:40
Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.
Answers: 3
You know the right answer?
Which of the following statements about a not-for-profit firm’s cost of capital estimate is most cor...
Questions on the website: 11109708