Business, 25.12.2019 22:31 elijahmaderos25491
riverrocks, whose wacc is 11.3 %, is considering an acquisition of raft adventures (whose wacc is 14.1 %). what is the appropriate discount rate for riverrocks to use to evaluate the acquisition? why?
a.? riverrocks' wacc is the most appropriate discount rate to account for the risk of raft? adventures' cash flows.
b. raft? adventures' wacc is the most appropriate discount rate to account for the risk of raft? adventures' cash flows.
c. an average wacc from riverrocks and raft adventures will best account for the risk of raft? adventures' cash flows.
d. the? risk-free rate will best account for the risk of raft? adventures' cash flows since riverrocks will pay cash for the transaction.
Answers: 3
Business, 21.06.2019 20:30
Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? a) compensating managers with stock options, b) financing risky projects with additional debt, c) the threat of hostile takeovers, d) the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions, e) abolishing the security and exchange commission
Answers: 1
Business, 22.06.2019 13:30
If the economy were in the contracting phase of the business cycle, how might that affect your ability to find work?
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riverrocks, whose wacc is 11.3 %, is considering an acquisition of raft adventures (whose wacc is 14...
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