Answer:
Cost of external equity financing 16.64%
Explanation:
Cost of external equity financing=Div*(1+g)/P (1-F) + g
F = the percentage flotation cost=4%
Div=Dividend in the current period=$3.7
g=growth=9%
P=Market price of the stock= $55
Cost of external equity financing=3.7*(1+0.09)/(55*(1-0.04))+0.09=0.166383=16.64%
Answer:
C) The threat of new entrants.
Explanation:
Porter's Five Forces: It's an analysis helpful for the industries to get the understanding of the loopholes and their weaknesses. Porter suggested that anytime a company goes down, there would be one force involved among the following five forces.
- Threat of new entrants.
- Bargaining power of buyers.
- Threat of substitutes.
- Rivalry among existing competitors.
- Bargaining power of suppliers.
In our case:
- Threat of new entrants force is involved: There is always a threat to the existing companies of the new company entering the market. Some companies doesn't take them seriously and ends up getting damaged. And, as the Goldman suggests that new supplies of the rooms in coming years will hurt the existing companies. So they must act on this information and make a decision to change the event for their own better.
Answer:
a. Wait until 2018 and see what the turnover rate is at the end of that year
Explanation:
Absenteeism is an employee’s intentional or habitual absence from work. Employee turnover is the number or percentage of employees who leave the workplace during a specific period of time.
(b) By dealing with possible employee work overloads, the human resource manager can help reduce the stress, pressure and burden felt by employees in the workplace.
(c) By identifying causes of job dissatisfaction, the manager can understand how to make work interesting and have more satisfied and motivated employees. The same consequences can be achieved by adjusting job design (d).
(e) By identifying possible employee role conflicts, negative tension and problems can be solved. There would also be the possibility for new friendships and social cliques to be formed.
All of these measures would lead to solutions that would reduce absenteeism and turnover.
On the other hand, waiting until the end of 2018 can damage the organization severely. There would not only be an increase in absenteeism and labour turnover but a heavy decline in labour productivity and increase in errors and mistakes. This would impact sales and profitability of the entire company. It is important that the HR manager take measures to solve the problem as soon as possible.
Answer:
D. The Nash equilibrium is for Firm 1 and Firm 2 each to produce 10.
Explanation:
Firm 2
10 units 20 units
10 units 30 / 50 /
Firm 1 30 35
20 units 40 / 20 /
60 20
(firm 1 /
firm 2)
Firm 1's dominant strategy would be to sell 10 units with an expected payoff outcome = 30 + 50 = 80
Firm 2's dominant strategy would be to sell 10 units with an expected payoff outcome = 30 + 60 = 90
Since both firms have the same dominant strategy (to produce 10 units), there is a Nash Equilibrium where both firms produce 10 units and each one earns 30.
Answer:
Prizes and toys in a cereal box as rewards for purchasing the cereal are examples of PREMIUMS
