100%Equity
<span>---------------------------- </span>
<span>EBIT: $200,000 </span>
<span>Interest: $0 </span>
<span>Taxes: ($80,000) </span>
<span>EAT: $120,000 </span>
<span>Equity: $1,000,000 </span>
<span>ROE12.0% </span>
<span>50% Debt </span>
<span>-------------- </span>
<span>EBIT: $200,000 </span>
<span>Interest: ($40,000) </span>
<span>Taxes: ($64,000) </span>
<span>EAT: $96,000 </span>
<span>Equity: $500,000 </span>
<span>ROE: 19.2% </span>
<span>This is my thought and is contingent on interest expense being tax deductible to the corporation. </span>
<span>Under the equity scenario. Taxes are $80,000 or 40% of $200,000 which is 20% of the $1mm asset base. So the $120,000 earnings after tax divided by the $1mm base is 12% </span>
<span>With 50% leverage, you deduct $40,000 (8% of $500,000 financing) and taxes on remaining amount. The new equity base is smaller at $500,000 so the ROE is higher at 19.2%.</span>
Answer:
C.
Explanation:
The definition of effectiveness, is more externally focused on results. Organizational efectiveness is defined as an external standard of how well an organization is meeting the demands of the various groups and organizations that are concerned with its activities. These groups mide include customers, partners, suppliers and vendors.
To measure the supply chain effectiveness, take a look at not what is just going on within the walls of a company, buy how this is ultimately impacting customers and the supply chain as a whole.
Answer:
Decision making and strategic planning
Explanation:
Management science refers to a science that helps handling the activities of an organization to accomplish established goals with the use of scientific methods. In order to reach their objectives, companies need to plan the strategies they are going to use and make sound decisions based on careful research and analysis of data to solve problems. For this, companies tend to use different techniques and mathematical models that help them to have a better understanding of the company situation and discover the right path to be successful. According to this, the answer is that management science stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning.
Answer:
good luck to your modules
Answer:
A
Explanation:
Present value of a perpetuality = amount / interest rate
= $40,000 / 0.08 = $500,000
Let D denote denote denotions

D = $190.820.