Answer: Company mission
Explanation: The company mission refers to the objectives mentioned in the mission statement of the organisation. It is a short statement which describes why the organisation exists and what are its goals. This statement also states the location of the organisation and other important factors like major customers.
In the given case, Craftmaples has the purpose of traditional handicrafts. Thus, all their operations and activities will move towards this one goal.
Hence from the above we can conclude that this case is an example of mission statement.
Answer:
The answer is False.
Explanation:
False, because the net working capital is determined by subtracting all the current liabilities from the current assets. But in the question, it says net working capital is determined by dividing the current assets with current liabilities which is wrong. Therefore, if the current assent is 10000 dollars and current liabilities are 5000 dollars then net working capital is 10000 – 5000 = $5000.
Answer:
9.315%
Explanation:
The computation of WACC is shown below:-
But before that we need to do the following calculations
PV -$1,000
PMT 80
N 20
FV $1,000
Compute IY 8%
After tax cost of Debt = Before tax cost of debt × (1 - tax rate)
= 8% × (1 - 25%)
= 6%
According to the CAPM,
Cost of Equity =Risk free Rate + (Beta × Market Risk Premium)
= 4.5% + (1.2 × 5.5%)
= 11.10%
Weight of Equity = 100% - 35%
= 65%
WACC = (Weight of Equity × Cost of Equity) + (Weight of debt × Cost of debt)
= (65% × 11.10) + (35% × 6)
= 9.315%
Answer:
Right to transfer
Explanation:
The owner has opted to use some land but leases the rest to a tenant by exercising the right to transfer. The right to transfer is a contract which allows renting some part of the land to another party for a specific period of time. The contractual right and responsibility are transferred through delegation or assignment.
