<span>As the volume of financing increases, the costs of the various types of financing will increase, raising the firms weighted average cost capital. This happens because the firm will have to pay more in fees for their financing an that will be passed on to the firms weighted average cost capital.</span>
Answer:
Issuing bonds will be the better option for this company. Mainly because they do not like to give up the control of the company or to change its equity structure.
When the bonds are issued, the company gets the money from the investors and has to pay an agreed amount of interest periodically until maturity of the bond, where the company will have to pay the face value of the bonds.
Explanation:
Answer:
The answer is: $38,429
Explanation:
You need to withdraw 208 payments (52 weeks x 4 years)
Each payment is $200
Discount interest is 0.0769% (4% yearly interest / 52 weeks)
So the present value of the cash flow is: PV = $38,429
The best way to calculate the PV is to use an excel spreadsheet and the NPV formula:
=PV(0.0769%,L1:L208) where L1 to L208 all equal 200
Answer: Ford has many production processes.
Explanation:
The production process for Ford is concerned with the transformation of its range of inputs into a wide variety of vehicles for individuals, firms, governments, schools etc etc that are wanted by the market.
The vision of Ford Production System is a flexible, disciplined and lean production system which involves a set of processes and principles, that employs groups of people capable and empowered to working together and learning for the achievement of the organizational goals.
Any production process consists of a series of links that are in a production chain. Since Ford has a very broad variety of vehicles, the company has many production processes.