All categories

1 year ago

A company's marketing mechanism is deemed successful only if

1 answer:

5 0

It attracts new customers and gets positive response.
Good marketing attracts more customers, more customers means more profit deeming it to be successful.

You might be interested in

Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of

Katarina [22]

Answer:

By raising additional funds from issuing additional equity common stock ,WAAC increases by 1.07%

Explanation:

WACC=Ke*E/V+Kp*P/V*Kd*D/V*(1-t)

WACC when additional funds is raised from retained earnings:

Ke is the cost of equity is 14.7%

Kd is the cost of debt is 11.1%

Kp is the cost of preferred stock 12.2%

E=equity weight of 51% 0.51

P= preferred stock weight 4% 0.04

D=debt weight 45% 0.45

V=debt+equity+preferred stock weights

V=0.51+0.04+0.45=1

t is the tax rate at 25% 0.25

WACC=14.7%*0.51/1+12.2%*0.04+11.1%*0.45*(1-0.25)

=(14.7%*0.51)/1+(12.2%*0.04)+(11.1%*0.45*0.75)

=11.73%

WACC when additional funds is raised from common equity capital

Ke is the cost of equity is 16.8%

Kd is the cost of debt is 11.1%

Kp is the cost of preferred stock 12.2%

E=equity weight of 51% 0.51

P= preferred stock weight 4% 0.04

D=debt weight 45% 0.45

V=debt+equity+preferred stock weights

V=0.51+0.04+0.45=1

t is the tax rate at 25% 0.25

WACC=16.8%*0.51/1+12.2%*0.04+11.1%*0.45*(1-0.25)

=(16.8%*0.51)/1+(12.2%*0.04)+(11.1%*0.45*0.75)

=12.80%

By raising additional funds from issuing additional equity common stock ,WAAC increases by 1.07% (12.80%-11.73%)

8 0

3 years ago

Candice, owner of Green Solar Panels, has found that some of her department managers were using management by objectives, but th

Ilia_Sergeevich [38]

Answer: B) False

Explanation: Management by objectives (MBO) is a type management which it's main goal is to improve the performance of an organization by means of stating the objectives which of the organisation and is usually agreed on by both the management and the employees. In the case above some objective have being put in place by Candice using MBO method, which she later discovered that some department are not complying with. This would affect the results of the MBO program she introduced, for an MBO to yield improve results it needs full cooperation from employees.

6 0

3 years ago

What a primary cause of inflation

lesantik [10]

Excess aggregate demand (AD)

Quick economic growth.

5 0

3 years ago

Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay divi

frozen [14]

Answer:

Cost of retained earnings = 0.13

Explanation:

given data

(D1) = $1.80

current price = $36

growth rate = 9 percent

solution

we get here Cost of retained earnings (Ke) that is express as

Cost of retained earnings = ( D1 ÷ P ) + g ................1

here P is price and g is growth rate

put here value and we get

Cost of retained earnings = (1.80 ÷ 36 ) + 0.08

Cost of retained earnings = 0.13

4 0

3 years ago

How Carnegie used vertical integration to reduce competition and make his business more profitable?

fomenos

Carnegie used vertical integration to reduce competition and make his business more profitable Vertical Integration was incorporated into everything from mining the ore and coal, to shipping it to the factories, and etc. With the flow from one business to another Carnegie was able to protect the profit made by keeping it all in a sort of cycle formation within the family. This prevented competitor companies from being able to cut down <span>availability on the market as well as raising prices on the stock.</span>

8 0

3 years ago