Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D and E represents debt and equity respectively
To calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
A firm's attempts to shorten the length of time a process takes may lead to disappointing outcomes because of time compression diseconomies.
<h3>
What are time compression diseconomies?</h3>
- According to time compression diseconomies, which are defined as inefficiencies that arise when work is done more quickly, the cost of building a competency will rise exponentially as the amount of time permitted to do so decreases.
- Not every subsidiary deals with time compression diseconomies to the same extent.
- The date of a later subsidiary formation may affect how strong TCD is. Early-established subsidiaries may have greater TCD than later entries due to two factors.
- First, for late movers, vicarious learning may lower TCD. Second, TCD is made worse by the higher environmental uncertainty that early mover subsidiaries frequently experience.
- TCD explains why the well-studied relationship between the level of multi-nationality and business success is negatively moderated by the rate of overseas expansion.
To learn more about Diseconomies refer to:
brainly.com/question/14563017
#SPJ4
Answer:
So they know what do when they fight back or attack
Answer:
<u>Customer satisfaction.</u>
Explanation:
Customer satisfaction is an extremely relevant factor for a company as it can directly influence the success or failure of a business.
The whole experience that the customer will have with your company will influence their perception and decision to re-establish relationships with the organization. The company should pay attention to the set of determinants responsible for customer satisfaction, the product must meet their needs, service and service should be cordial and optimized to clarify doubts and assist in the process of purchase and customer loyalty.
So on that issue, an employee like Sharon will negatively impact customer satisfaction, which has not been answered and badly answered. What the organization can do to improve this cycle is to invest in employee training and motivational policies that help increase job satisfaction and thereby increase customer satisfaction.
Answer:
27%
Explanation:
Number of Persons in the Household = 90
<u>Neither Employed Nor Unemployed</u>
- Children Under 16 =10
- Disabled = 5
- Retired =10
- Stay at Home Parents = 5
- Full Time Students over the age of 16= 5
Total =35
<u>Unemployed</u>
- 10 people had no job but were looking for jobs
- 5 people who wanted a job but were not looking for a job.
- Total =15
<u>Employed</u>
- 35 people had full-time jobs
- 5 had part-time jobs
Total =35+5=40
Total Labour Force = Unemployed +Employed = 40+15 =55
Unemployment Rate = (Unemployed People / Total Labor) x 100
=15/55 X 100
=27%
According to the information in the survey, the unemployment rate is: 27%
