A capital component when calculating the weighted average cost of capital (wacc) for use in capital budgeting?

Answers

Answer 1

A capital component is an important factor to consider when calculating the weighted average cost of capital (WACC) for use in capital budgeting. The WACC is the average cost of all the sources of capital that a company uses, including debt and equity. To calculate the WACC, you need to determine the cost of each capital component and then weigh them according to their proportion in the company's capital structure.

To calculate the cost of each capital component, you need to consider factors such as the interest rate on debt and the cost of equity. The interest rate on debt can be calculated by taking into account the interest payments and the principal amount borrowed. The cost of equity can be determined using methods such as the dividend discount model or the capital asset pricing model. Once you have calculated the cost of each capital component, you need to weigh them based on their proportion in the company's capital structure. This can be done by dividing the market value of each capital component by the total market value of all the capital components. Finally, to calculate the WACC, you multiply the cost of each capital component by its weight and sum them up. This weighted average cost of capital represents the average cost of financing the company's operations and projects.

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Related Questions

When you plan a presentation, how should you make sure you stay on track as you talk?

A. Make a list of general topics and points you want to cover.

B. Write out every word of the presentation on notecards.

C. Memorize every word of the presentation in your head.

D. Have the audience tell you what else you need to talk about.

Answers

Answer:

A make a list

Explanation:

Answer:

It's A. Make a list of general topics and points you want to cover.

Explanation: hope it helps ^w^

Which assumption would a lender most likely make about a person with a credit score around 800?
O that the person has invested a great deal of money in the stock market
O that the person has had very few delinquent payments in the past
O that the person has lived in the same city for a long time
O that the person has avoided using credit cards

Answers

The correct answer would be the 2nd option.

the majority of online shoppers find vendors by clicking on display ads. T/F

Answers

False. The majority of online shoppers do not find vendors solely by clicking on display ads. There are various other methods through which they discover vendors.

Determine how to find the majority of online shoppers?

The majority of online shoppers do not necessarily find vendors by clicking on display ads. While display ads can be an effective marketing tool, they are not the sole or primary method for most online shoppers to discover vendors.

There are various ways through which online shoppers find vendors, including but not limited to search engine results, referrals from friends or family, social media platforms, online marketplaces, and direct website visits.

Display ads, which are visual advertisements typically shown on websites or mobile apps, can play a role in raising awareness and attracting potential customers, but their impact may vary depending on the target audience, industry, and overall marketing strategy employed by vendors.

Therefore, it would be incorrect to state that the majority of online shoppers find vendors solely through display ads.

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BRAINLIEST PLZ ANSWER
What type of relationship do a lawyer and a client have?
A.
A labor relationship
B.
A tort relationship
C.
An administrative relationship
D.
An agency relationship

Answers

i'm pretty sure it's D. An agency relationship, but let me know if i'm wrong!!

It would be D because it just have to be business

The idea of getting the right ad, at the right time, for the right user, in the moment when he or she is most interested in that topic is the key to the success of _____________.
radio advertising
television commercials
search advertising
newspaper advertising

Answers

The correct answer for the statement "The idea of getting the right ad, at the right time, for the right user, in the moment when he or she is most interested in that topic is the key to the success of" is search advertising.

Search advertising is a type of online advertising where ads are placed on search engine results pages based on specific keywords or phrases that users search for. When a user enters a search query, relevant ads appear alongside the search results, increasing the likelihood that the user will click on the ad and visit the advertiser's website.
The success of search advertising relies on the ability to target the right audience with the right message at the right time. By targeting users based on their search queries, advertisers can reach potential customers who are actively searching for products or services like theirs. This makes search advertising highly effective at driving conversions and generating a strong return on investment.
Furthermore, search advertising allows for precise targeting options such as location, device, time of day, and audience demographics. This means that advertisers can ensure their ads are only shown to users who are most likely to be interested in their product or service. This level of targeting, combined with the ability to track and measure the success of campaigns, makes search advertising a powerful tool for businesses looking to grow their online presence and drive sales.

Therefore, the idea of getting the right ad, at the right time, for the right user, in the moment when he or she is most interested in that topic is the key to the success of search advertising.

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Assuming leisure is an ordinary good, how will a decrease in non-wage income M affect the optimal amount of leisure? Select one: a. The effect is ambiguous b. Leisure will decrease and labor will increase O C. Leisure will increase and labor will decrease

Answers

Assuming leisure is an ordinary good, a decrease in non-wage income M will affect the optimal amount of leisure in the following way: "Leisure will decrease and labor will increase".

When non-wage income M decreases, people have less income to spend on leisure activities. As a result, the opportunity cost of leisure increases, which makes leisure more expensive in terms of foregone income. This causes people to reduce their leisure time and instead work more to earn additional income.  Therefore, a decrease in non-wage income M will lead to a decrease in the optimal amount of leisure and an increase in the optimal amount of labor.

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the practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Answers

Price discrimination refers to a pricing strategy that charges consumers different prices for identical goods or services

Pricing clients differently for the same commodity or service according to what the vendor thinks they can convince the customer to accept is a sales strategy known as price discrimination.

When a business practices pure price discrimination, they impose the greatest price that any given customer would accept. The provider separates customers into groups based on specific criteria and assigns a different price to each group in more common types of price discrimination.

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PLEASE HELP ASAPP

PLEASE MAKE THE ANSWER CLEAR EASY TO UNDERSTAND YOU DONT NEED TO EXPLAIN THANK YOU.

PLEASE HELP ASAPP PLEASE MAKE THE ANSWER CLEAR EASY TO UNDERSTAND YOU DONT NEED TO EXPLAIN THANK YOU.

Answers

Answer:

health insurance/current total (gross NOT net) and move your decimal over =%

Explanation:

Which of the following describes how the U.S. government protects and supports farmers and ranchers?
through establishing and maintaining food standards
through programs that provide direct payments
through allowing agribusiness companies to create oligopolies
through strict measures of qualis for commodities

first one to get it right gets Brainliest ​

Answers

Answer:

through allowing agribusiness companies to create oligopolies

Explanation:

Answer:

through programs that provide direct payments

Explanation:

The United States government gives free money to farmers and ranchers through a government subsidiary.

6 * 4 + 43 w/ solutions
net programming (tle)

Answers

Answer:

24+43w

Explanation:

A separately identifiable collection of things about which the organization wants to collect and store information is a

Answers

Answera

Explanation:

the anser is a

Net Income ($82)
Charges in Working Capital $100
FCFO
$[?]
$150
Fill in the blanks
on this financial
statement.
Disposal of PPE
Purchase of PPE
FCFI
Issuance of Stock
($27)
$[ ]
$540
Dividend Payment ($110)
Issuance of Debt
$68
Debt Repayment ($25)
Interest Expense
($75)
FCFF sĩ
Total FCF $[

Net Income ($82)Charges in Working Capital $100FCFO$[?]$150Fill in the blankson this financialstatement.Disposal

Answers

FCFO = $182

FCFI = $216
FCFF = $ -82

Total FCF = $583

What are the above terminologies and how did we arrive at the answers?

FCFO - Free Cahs Flow to Firm is derived by adding Net Income  to Charges in Working Captial

= $82 + $100

= $182

FCFI - Free Cash flow to Firm (Investing
= Disposal of PPE - Purchase of PPE + Issuance of Debt + Debut repayment

= 150 - 27 + 68 + 25

= $216

FCFF = Free Cash Flow to Firm

= Dividend payment + Interst Exprense  + FCFI
= $110 + 75 + 216

= $401

Total FCF = FCFO + FCFF

= $182 + $401

= $583

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Which of the following is an untrue statement regarding the repo?
A. Collateral Value typically exceeds the amount of cash deposits
B. Depositors does not take legal ownership of the collateral
C. Depositors is not required to hold the collateral received on its balance sheet
D. Repo is a deposit of cash at a bank backed by collateral

Answers

The following is untrue statement regarding the repo is A. Collateral value typically exceeds the amount of cash deposits."

In the repo market, the borrower provides collateral to the lender in exchange for cash. The collateral can be anything from government securities to corporate bonds, depending on the agreement between the parties. In a repo transaction, the collateral value usually matches or exceeds the amount of cash provided by the lender, this ensures that the lender is adequately protected in case the borrower defaults on the loan.

However, in some cases, the collateral value may be less than the cash provided, which can result in a loss for the lender if the borrower defaults. Option B is a true statement as the depositor does not take legal ownership of the collateral. Option C is also true as the depositor is not required to hold the collateral received on its balance sheet. Option D is partly true as the repo involves borrowing cash against collateral, not depositing cash. So therefore the correct answer for an untrue statement regarding the repo is A. Collateral Value typically exceeds the amount of cash deposits.

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who looks over the land and determines the best location for the structure.

Answers

Answer:

what does this mean

Explanation:

we had a discussion on the theory of efficiency wages. Which one of the following statements is NOT consistent or NOT related to the theory of efficiency wages? 2. Firms may find it profitable to pay above-equilibrium wages. b. Higher wages attract a more competent pool of workers. e Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity d. Sometimes, firms voluntarily choose to pay wages higher than the equilibrium wages. 0. Higher wages cause workers to shirk more of their responsibilities 1. Paying higher wages can reduce a firm's training costs.

Answers

The theory of efficiency wages suggests that firms may find it profitable to pay wages that are higher than the equilibrium wage rate. This is because higher wages can attract more competent workers and enhance their productivity.

In addition, paying higher wages can motivate workers to adopt healthier lifestyles, which can further enhance their productivity. Moreover, sometimes firms voluntarily choose to pay higher wages because they believe that it will increase worker motivation and reduce employee turnover.

However, the statement that higher wages cause workers to shirk more of their responsibilities is not consistent with the theory of efficiency wages. This is because efficiency wages are meant to motivate workers to be more productive and to take on more responsibilities. If higher wages actually caused workers to shirk their responsibilities, then the theory of efficiency wages would not hold true.

Furthermore, paying higher wages can reduce a firm's training costs because it can attract workers who are already skilled and experienced. This means that the firm may not have to invest as much in training new employees, which can save the firm both time and money. In summary, the theory of efficiency wages suggests that paying above-equilibrium wages can be beneficial for both firms and workers, as it can increase productivity, reduce turnover, and save training costs.

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Cost of equity: SML. Stain is expending his business and will sell common stock for the needed funds. If the current risk-free rate is 6.2% and the expected market return is 15.8%, what is the cost of equilty for Stan if the beta of the stock is
a. 0.71 ?
b. 0.89 ?
c. 1.07 ?
d. 1.24 ?

Answers

a. For a beta of 0.71:

Cost of equity = 6.2% + 0.71 * (15.8% - 6.2%) = 11.09%

b. For a beta of 0.89:

Cost of equity = 6.2% + 0.89 * (15.8% - 6.2%) = 13.07%

c. For a beta of 1.07:

Cost of equity = 6.2% + 1.07 * (15.8% - 6.2%) = 14.66%

d. For a beta of 1.24:

Cost of equity = 6.2% + 1.24 * (15.8% - 6.2%) = 16.09%

Here's a detailed explanation with calculations for each part:

a. For a beta of 0.71:

The formula to calculate the cost of equity using the Security Market Line (SML) approach is:

Cost of Equity = Risk-Free Rate + (Beta * Market Risk Premium)

Given:

Risk-Free Rate = 6.2%

Expected Market Return = 15.8%

Beta = 0.71

Market Risk Premium = Expected Market Return - Risk-Free Rate

Market Risk Premium = 15.8% - 6.2% = 9.6%

Cost of Equity = 6.2% + (0.71 * 9.6%)

Cost of Equity = 6.2% + 6.82%

Cost of Equity = 13.02%

b. For a beta of 0.89:

Using the same formula:

Market Risk Premium = 15.8% - 6.2% = 9.6%

Cost of Equity = 6.2% + (0.89 * 9.6%)

Cost of Equity = 6.2% + 8.55%

Cost of Equity = 14.75%

c. For a beta of 1.07:

Market Risk Premium = 15.8% - 6.2% = 9.6%

Cost of Equity = 6.2% + (1.07 * 9.6%)

Cost of Equity = 6.2% + 10.27%

Cost of Equity = 16.47%

d. For a beta of 1.24:

Market Risk Premium = 15.8% - 6.2% = 9.6%

Cost of Equity = 6.2% + (1.24 * 9.6%)

Cost of Equity = 6.2% + 11.90%

Cost of Equity = 18.10%

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If a country has an absolute advantage in every good, then?

Answers

Trade can still be advantageous to both parties even when one country has a definite edge in all products. Absolute This is due to the fact that trading profits are obtained by specializing in one's comparative advantage.

Absolute advantage merely contrasts a worker's productivity across nations. How many inputs are required to create shoes in by this. A slightly different version of this question is posed by comparative advantage. It asks instead, absolute According to the comparative advantage concept, a representative will produce more of and consume less of a good for which they have a comparative advantage under free trade. Comparative advantage is the economic reality that shows how the amount of work people or nations do as a result of trade has increased over time.

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the most indirect marketing channel is employed when

Answers

Answer: there are many small manufacturers and many small retailers

A fee that lenders may receive for selling or transferring their right to service a mortgage loan is called

Answers

A fee that lenders may receive for selling or transferring their right to service a mortgage loan is called Service release premium. When a completed mortgage loan is sold to the secondary mortgage market.

a lending institution, like a bank or retail mortgage lender, receives a payment known as a service release premium (SRP). As the initial phase in the production of a mortgage-backed instrument, the secondary mortgage loan market purchaser is often a Wall Street investment bank, Fannie Mae, Freddie Mac, or Ginnie Mae (MBS). Nowadays, the US government buys almost all concluded mortgages through the GSE Mortgage Backed Securities Purchase Program.

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You want to buy a new ski boat 2 years from now, and you plan to save $6,400 per year, beginning one year from today. You will deposit your savings in an account that pays 6.2% interest. How much will you have just after you make the 2nd deposit, 2 years from now?

Answers

Answer:

Total Amount after 2 years = $13196.8

Explanation:

Data Given:

Amount of savings per year = $6400

Interest rate = 6.2%

Find Total Amount in account after 2 year:

Solution:

Lets consider it step by step.

Amount of money deposited in account after 1 year = $6400

After 2 years, we earn 6.2% interest on $6400,which is:

\(\frac{6.2}{100}\cdot6400= 396.8\)

So, after 2 years, BEFORE the 2nd deposit, we have $6400 + $396.8 = $6796.8 in the account.

AFTER 2nd deposit of $6400, total amount we have in account is:

Total Amount = $6796.8 + $6400 = $13196.8

Casi has two options to get to her friend's house on the coast. She can either take an Uber or ride the bus. The Uber will cost her $90 and it will take 1 hour to get to her friend's house. The bus will only cost $10 but it will take her 5 hours to get to her friend's house. How much does Casi have to value her time per hour to make her willing to use an Uber instead of taking the bus? Provide the dollar amount below. Do not include a "$" sign.

Answers

Casi needs to value her time at $20 per hour to make her willing to use Uber instead of taking the bus.

To determine the value Casi needs to place on her time per hour to choose an Uber over the bus, we can calculate the time difference between the two options and compare it to the cost difference.

The time saved by taking an Uber is 5 hours - 1 hour = 4 hours.

The cost difference between the two options is $90 - $10 = $80.

To find the value Casi needs to place on her time per hour, we divide the cost difference by the time saved:

Value of time per hour = Cost difference / Time saved

Value of time per hour = $80 / 4 hours = $20/hour.

Therefore, Casi would need to value her time at $20 per hour or more to be willing to use an Uber instead of taking the bus.

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Which of the following is not a reason for redesigning a product or service?
A) to reduce labor or material cost
B) to increase the level of customer satisfaction
C) to increase quality
D) to increase the level of employee satisfaction
E) to attract and increase customer demand

Answers

The correct answer is D.

Which of the following demonstrates active listening while receiving constructive criticism well

Answers

Please finish the question!

Answer:

c

Explanation:

As a factor of production, what is capital?

A. an industrial good

B. the natural resources used to create a product

C. the entrepreneur who sees how to make something useful

D. the tangible products made by labor

Answers

Answer:

Option "D" is the correct answer.

Explanation:

Labor produces tangible goods, which are referred to as capital. There are production-related man-made items such as machinery, vehicles, and chemicals. That is what sets them apart from commercial products.

Select the correct answer.
What is a benefit of joining a professional organization for your chosen career path?
A. taking difficult certification examinations
B. participating in competitive events
C. going to regional conferences to get continuing education credits
D. helping with choosing a career path​

Answers

Answer:

C. going to regional conferences to get continuing education credits.

Explanation:

Asser and his partner Ali decided to start a business selling flowers called A and A Blooms. They agreed the business
objectives they would set. There are several other shops in the town and much competition. Asser and Ali had little
cash to start the shop, BUT after 5 years running, it is still open. Business objectives have changed, there are plans to
open 2 or 3 new shops, perhaps by taking over some of their competitors. The business now employs 5 workers and
uses several local flower growers as suppliers.
a) What is meant by 'business objective'?
[2]
Goals
Direction in which business Сол be succesful
b) Identify two of A and A Blooms' stakeholders, other than workers and suppliers.
[2]
Customers and Community
c) Identify and explain two likely business objectives of Blooms when the business was first established. [4]

Asser and his partner Ali decided to start a business selling flowers called A and A Blooms. They agreed

Answers

A business objective simply refers to the results that a business wants to achieve. Having a business objective is vital for a business.

It should be noted that business objectives are the measurable results that a business hopes to maintain as the business grows.

The examples of A and A Blooms' stakeholders apart from the workers and suppliers will its shareholders and customers. Stakeholders are affected by the decisions taken by a business.

The two likely business objectives of Blooms when the business was first established include profit maximization and cost minimization.

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a 1.5 ounce shot of 80 proof liquor has the same amount of alcohol as how many ounces of beer? 10 12 17 19 20 22

Answers

A 1.5 ounce shot of 80 proof liquor has the same amount of alcohol as approximately 12 ounces of beer.

A 1.5 ounce shot of 80 proof liquor contains approximately 0.6 ounces of pure alcohol. The amount of alcohol in beer can vary depending on factors such as the type of beer and the alcohol content, but on average, a 12-ounce beer contains around 0.5 ounces of pure alcohol.

It's worth noting that the effects of alcohol can vary based on factors such as body weight, gender, and overall health, so it's important to drink responsibly and in moderation.

In the United States, moderate drinking is defined as up to one drink per day for women and up to two drinks per day for men. Excessive drinking can lead to negative health consequences, such as liver disease, heart disease, and certain types of cancer.

It's also important to note that different types of alcoholic beverages can have different effects on the body. For example, drinking beer over a longer period of time may result in a more gradual increase in blood alcohol concentration compared to drinking a shot of liquor all at once.

It's important to be aware of how different types of alcoholic beverages affect you personally and to drink in moderation to avoid negative consequences.

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Write a biography about a famous person of Nepal...​

Answers

Explanation:

Parijat (Nepali: पारिजात) was a Nepalese writer. Her real name was Bishnu Kumari Waiba (Waiba is a subgroup of Tamang) but she wrote under the pen name Parijat (Parijat is a night-flowering fragrant jasmine flower). Her most acclaimed publication is Shiris Ko Phool (The Blue Mimosa), which has also been adapted in the literature curriculum of some colleges in some English-speaking countries like United States, England etc. Some of the notable universities where Parijat's Shirish Ko Phool was adopted as curriculum in the University of Maryland, USA.

Answer:

● Gautama Buddha. 0563 BC. Founder of Buddhism.

● Tenzing Norgay. 29 May 1914. Mountaineer.

● Anatoli Boukreev. 16 January 1958. Mountaineer.

● Gyanendra Bir Bikram Shah Dev. 07 July 1947. ...

● Chandra Bahadur Dangi. 30 November 1939. ...

● Birendra of Nepal. 28 December 1945. ...

● Sandeep Lamichhane. 02 August 2000. ...

● Amrita Acharia. 31 July 1987.

Explanation:

I HOPE IT'S HELP

(Zaxbys)
select all the salads that are made with regular zalad base x (check all that apply).
Answer choices:fried caesar, buffalo blue, grilled caesar, blackened blue, grilled house, grilled cobb, fried house, fried cobb ​

Answers

Answer:

Fried Caesar, grilled Caesar, Buffalo blue, fried cobb

Explanation:

Salads are made with various vegetables and meat base. The regular salad is green salad which is most commonly used. There are many benefits of having salad with meal. Many people do not like vegetables so they add little meat with salad to consume it. Most regular salad base are fried Caesar and fried cobb.

hen comparing a cash account to a margin account: A cash account transactions must be settled faster in a cash account than in a margin account B cash account transactions are not subject to Regulation T while margin account transactions are C cash account transactions require full payment on settlement while margin account transactions do not D cash accounts do not permit options transactions while margin accounts do permit options transactions

Answers

Answer:

They Answer is B im pretty sure

Explanation:

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The gravity of the Sun and Moon pulls earth's surface in opposite directions: according to a 2014 survey of american adults by geoffrey brewer on gallup polls online, the fear of public speaking ranks even higher than which of the following sources of fear? Which symptoms of gonorrhea are visible in males?crawling insects in the genitalssevere rash all over the bodyblistersthick yellow discharge from genitals while there are no laws enforcing racial segregation in the u.s., we still find churches and schools that are segregated. this fact represents the power of: over a period of one year, two points on opposite sides of a mid-ocean ridge moved a distance of 4 centimeters farther apart. what is this distance, in meters? (1 meter a) find the frequency of the fundamental and third harmonic of a steel wire 1m long with a mass per unit length of 2000kg/m and under a tension of 80Nb) find the wave length of the sound wave created by the vibrating wire for the third harmonic. assume the speed of sound in air is 345m/s pls help me thx very desparate 5 3/4 divided by 1 and 1/2 how is vapor pressure related to temperature? what happens to the vapor pressure of a substance when the temperature is increased? decreased? 3. (Hammack 14.3 #9, adapted) (a) Suppose A and B are finite sets with |A| = |B|. Prove that any injective function : A B must also be surjective. (b) Show, by example, that there are infinite sets A and B and an injective function : A B that is not surjective. That is, part (a) is not true if A and B are infinite. What types of relationships does Winston have with Syme and Parsons? A tribunal was made up of a group of different people including all these roles except which one?A) arresting constableB) prosecuting attorneyC) scribeD) all of the above Having a weakness along a specific plane will allow a mineral to?A. magnetizeB. cleaveC. fractureD. streak 0 3 1 2 Architecture Over the past several years, it has become increasingly common for big-name developers to tear down Victorian, Craftsman, and Colonial buildings. This destruction is often performed with the thought that it is the property that holds the true value, not the structure that sits on it. Likewise, homeowners have begun to value their property's location over the house they have spent many years living in. Little regard is given to the painstaking details and craftsmanship that went into these buildings, nor the innate beauty of hand-carved woodwork and ornamentation. "Out with the old, in with the new" has resulted in people no longer appreciating the history and artistic integrity of our country's oldest buildings and failing to realize that once "the new" is brought in, "the old" is lost to us forever. It is bad enough that developers and private citizens are blind to the beauty around them, what is worse is that local governments refuse to step in and prevent this destruction. Cities and towns need to stand up to large developers that flash money around in the name of progress. Rather than allowing developers to tear down old buildings simply to put up new ones, local governments could enact ordinances to preserve their area's architecture. If an old building is unusable or unsafe as it is, the structure could be restored instead of demolished; not only would this save one-of-a-kind architecture, it is also an extremely environmentally-conscience concept because less building material is used and wasted. 5 Select the correct answer from the drop-down menu. How does the author develop the overall claim in this passage? The author includes details that show that significant buildings. Reset Next destruction of historically when managers are trying to create value for shareholders, their primary focus should be on earnings rather than cash flow. true false the portion of net income that a firm reinvests in itself is measured with the: multiple choice retention ratio. dividend yield. dividend payout ratio. internal growth rate. cash influx ratio. Help will make brainlist. By which rule are these triangles congruent?A)AASB)ASAC)SASD)SSS Which zone of the epiphyseal plate is located the farthest from the marrow space?Zone of cell proliferationZone of calcificationZone of bone depositionZone of reserve cartilageZone of cell hypertroph If g(x) = x2 + 3, find g(4).A.11B.19C.16D.8