A. Will management allow this message to be sent?
Answer A:
This depends upon the financial health of the company and the project for which the funds are required. If the company is raising debt finance and its financial health is not good, then it seems the management might reject the idea to raise debt finance because the company have to pay interest on this amount borrowed. But if the company is raising equity finance then greater chances exist that the management will encourage this move.
B. Will anything change as a result of the message?
Answer B:
Ofcourse, if the debt finance is used it would make the financial health of the company worse than before if the project for which the loan option is choosen does not performs well in the market. If the projects performs well then it will reduce the financial distress and head the company towards another investment to further reduce the gearing and increase the interest cover.
C. Is the time right?
Answer C:
It might be right time to borrow because after some time there might be a rare chances to borrow or raise equity because of further poor performance. It is also possible that the investment will decrease the financial gearing from its better performance, which is the need of the time. So it depends a lot on the source of finance, project profitability and time. If we use equity finance then it provides financial protection for a greater period.
D. Is the purpose acceptable to the organization?
Answer D:
If the company raising the finance to pay its debt then that's not the right option. The company must raise finance to invest somewhere else and earn a good share of investment in the comings year to meet the interest due and make another investments. It also depends what is the purpose of the fund raising. Usually the lenders prefer to pay to companies when companies make investments.
E. Is the purpose realistic?
Answer E:
If the company is making unrealistic assumptions then it is probable that the company performance in the year will be very poor. So making better forecasting is a better way to sense the risks in the market and also tells the way we must tackle these risks.
Answer:
TRUE! HOPE THIS HELPS! :)
Explanation:
Answer:
P0 = $137.2988907 rounded off to $137.30
Explanation:
The two stage growth model of DDM will be used to calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
- g1 is the initial growth rate
- g2 is the constant growth rate
- D0 is the dividend paid today or most recently
- r is the required rate of return
P0 = 2 * (1+0.15) / (1+0.07) + 2 * (1+0.15)^2 / (1+0.07)^2 +
2 * (1+0.15)^3 / (1+0.07)^3 +
[(2 * (1+0.15)^3 * (1+0.05) / (0.07 - 0.05)) / (1+0.07)^3]
P0 = $137.2988907 rounded off to $137.30
Brainstorming is a technique for the decision making, it encourages arguments between the individuals but this sometimes result in conflicts and disagreements.
<h3 /><h3>What is decision making?</h3>
Decision making is the technique in which the decision is decided, according to the situation and after careful analysis of the environment decision is made.
Force Field technique is a decision making technique, in this technique the participants write the decision in the middle of the paper and list the forces that require and resisting changes.
Decision making techniques are important and should be used to make an effective decision, in a complex business it is difficult to apply the technique but it is also important to implement the technique.
Brainstorming is the technique in which all the participants sit together and share their ideas while some challenge the ideas and so a decision with an agreement is made.
Learn more about Decision making at brainly.com/question/27272241
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