Answer:
If the firm uses less leverage, its ROE will decrease since the cost of equity is much higher than the cost of debt. If all debt is eliminated, then ROE will decrease to 7.764% from 10.83%.
Explanation:
net income = $9.75 million
capital structure:
- $90 million equity
- $60 million debt
interest rate = 4% and tax rate = 21%
current return on equity (ROE) = $9.75 / $90 = 10.83%
current return of assets (ROA) = $9.75 / $150 = 6.5%
cost of debt = 4% x (1 - 21%) = 3.16%
if the company issues more equity to lower debt to 0, then:
net income = $9.75 + [$60 million x 4% x (1 - 21%)] = $9.75 + $1.896 = $11.646 million
return on equity (ROE) = $11.646 / $150 = 7.764%
return of assets (ROA) = $11.646 / $150 = 7.764%
Answer: They are seeking collective thinking and knowledge for a faster turn around of work by the team in a whole. They want people to have different skill sets so they can share with each other.
Explanation:
By working together as a team, everyone can share their own direct knowledge they have picked up over their careers. Each person on the team will be able to share skills that they have learned and teach others. With everyone working together the job will get done faster and better than with just one person working alone on the job at hand.
The work environment of the team will have synergy and the working environment will be a collaborative effort.
Answer:
D. announce variable pay linked to employee performance
Explanation:
employees will want to work harder of they are getting payed more money, therefore that would be an excellent way to increase productivity
<span>
<span>In
investment, the term risk can be defined as the possibility of the investor
losing all or part of their capital in a given venture. High quality bonds
are considered lower risk because the the investor is promised to receive
face value after a certain period unlike stocks that do not carry the same
promise. Returns on high quality bonds are also guaranteed in the form of
fixed interest rates whereas in stocks, a company may pay dividends but this
is not an obligation on their part. Lastly bonds are safer investment as they
are less susceptible to abnormal price changes unlike stocks whose prices can
easily swing in either direction.</span></span>
Answer: Uploading pictures, music, and videos.
Explanation:
Social Media has made connections between marketers and customers easier and more widespread. They are able to share information amongst themselves through various means such as discussions on products as well as uploading pictures, music and videos.
Through these uploads of pictures, music and videos, marketers and consumers can share information relating to new products, product performance and the like. For instance, in the movie industry, trailers are frequently uploaded on social media sites to enable the movie gain traction before it is released and this method has worked wonders for movie premiers.