1.Depreciation is an example of discounting true false 2.As of today, MU’s WACC = 11.6% and...

1.Depreciation is an example of discounting

true

false

2.As of today, MU’s WACC = 11.6% and SBUX’s WACC = 5.9%. Both MU (Micron) and SBUX (Starbucks) are publicly traded companies. This means:the market views MU as riskier than SBUX

true

false

Expert Solution

(1).

Answer is True

Explanation;

As we know that depreciation refer to the decrease in the value of an asset due to passage of time, or due to wear & tear. Thus it is helpful in knowing exact & true value of an asset after a certain time that means it shows effect of time on the value of an asset that is why we can say that depreciation is an example of discounting.

(2).

Answer is True

Explanation;

As we know that WACC (Weighted average cost of capital) is the overall cost of capital which shows on average how much a company need to pay for using funds of the investors. Apart from this it is also true that as the risk increases then cost of capital also increases because in case of more risk the inventors will want more return thus higher WACC refers to the more riskier firm.

Thus given statement is true because WACC of MU is higher than WACC of SBUX, so MU is more riskier than SBUK.

jeff jeffy answered 2 years ago

1. Firms with riskier projects generally have a lower WACC. A. True B. False 2. Which...

1. Firms with riskier projects generally have a lower WACC. A. True B. False 2. Which of the following statements is correct? A. Since debt capital can cause a company to go bankrupt but equity capital cannot, debt is riskier than equity. B. The tax-adjusted cost of debt is always greater than the interest rate on debt, provided the company does in fact pay taxes. C. If a company assigns the same cost of capital to all of its projects...

1)True or False: Ambiguity is a type of vagueness True False 2)True or False: When determining...

1)True or False: Ambiguity is a type of vagueness True False 2)True or False: When determining whether a report of an argument should be treated as an argument, it is important to consider the context in which the report is made. True True False 3) True or False: In a V argument with two premises, if one of the premises is false, then the argument is definitely weak True False 4) True or False: A report of an argument can...

1. True or False: Areolar connective tissue is an example of a loose connective tissue. 2....

1. True or False: Areolar connective tissue is an example of a loose connective tissue. 2. True or False: Tendons and ligaments are composed of elastic tissue. 3. True or False: Bone and cartilage are examples of dense regular connective tissues. 4. True or False: Erythrocytes and leukocytes are cells found in blood. 5. Name the simple tissues found lining most organs of the digestive tract to include the stomach, small intestine and large intestine as...

1. True or False: Disaster Planning is not part of the BCP? 2. True or False:...

1. True or False: Disaster Planning is not part of the BCP? 2. True or False: you still need a BCP or DRP if you have business liability insurance, asset replacement insurance and natural disaster insurance 3. True or False: If a business cannot operate, the BCP assists in bringing the business back to life and operational readiness. 4. True or False: a BIA helps define the scope of the BCP itself. 5. True or False: The purpose of having...

1. Microtubules make up mitotic spindles (True or False)2. P53 is an example of an oncogene...

1. Microtubules make up mitotic spindles (True or False)2. P53 is an example of an oncogene (True or False)3. APC loss of function mutations typically causes a reduction of WNT signaling to promote polyp formation and colon cancer (True or False)4. Extravasation is the movement of a tumor from a primary tissue site into the blood circulation (True or False)5. A gain of function mutation in a gene typically causes a reduced function of the encoded protein (True or False)6....

1. True or false. The mass of a closed system cannot change. 2. True or false....

1. True or false. The mass of a closed system cannot change. 2. True or false. Fahrenheit scale cannot be used in thermodynamics relations. 3. True or false. An extensive property can be a function of time and location. 4. True or false. If a system is at steady state, then the density is uniform throughout the system. 5. True or false. All modes of heat transfer between two bodies must occur when the two bodies are in contact. 6....

1) TRUE OR FALSE: Parameters yield populations 2) TRUE OR FALSE: In a study entitled the...

1) TRUE OR FALSE: Parameters yield populations 2) TRUE OR FALSE: In a study entitled the relationship between study time and grades, study time is the predictor variable. 3) TRUE OR FALSE: Only experiments involve direct measurement by the researcher. 4) A response variable is also an outcome variable. 5) Statistical methods that use sample data to make statements about populations are called inferential statistics. 6) The IV is the variable that can be randomly assigned by the researcher.

2) True or False (If statement is false, correct it so that it is true) a)...

2) True or False (If statement is false, correct it so that it is true) a) Polymers make up an exciting class of biomaterials. Polyethylene is a wonderful example of a simple ceramic that can be used in multiple applications by modifying its chemical structure. It tends to be bioactive when used by itself as an implant, but it becomes even more bioactive when 10 vol% Calcium Carbonate is added to it. Teflon can be used as a vascular graft...

1. True or False: Confidence intervals can only be calculated for means. True False SAVE 2....

1. True or False: Confidence intervals can only be calculated for means. True False SAVE 2. Suppose a sample of 200 barrow-wights (wraith-like creatures that feed on the life force of the living) yields a sample mean of 6.2 living beings consumed per day. Assuming a standard error of 1.7, what would the upper bound of a 95% confidence interval be? SAVE 3. Using the same ridiculous survey data from the previous question, what would the lower bound of a...

2. Identify each of the following statements as “true” or “false”. Explain your response. Macroeconomists today...

2. Identify each of the following statements as “true” or “false”. Explain your response. Macroeconomists today agree: a. that laws requiring a balanced budget can do more harm than good. b. that fiscal policy is just as effective as monetary policy. c. that the economy can be slow to self-correct. d. that a liquidity trap can render monetary policy ineffective.

Question