Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
Thanks!
Answer: Create Focus Groups.
Explanation:
Creating a Focus group out of the Customers that use the Scranton branch would help Dunder Milfflin find out a more specific issue that they are complaining about.
Should customers be brought together and asked what they think should be done to improve service, you will find that many complaints are similar which would enable a better way to tackle the issue faster opposed to tackling each issue as they come.
This Focus Group method is very efficient and accurate as the problems come from the horse's mouth so to speak and Multiple problems can be then be found and categorized separately.
Answer:
the qquantity of money available in the economy will increase because there will be more foreign investments plus now the economy will start exporting and will reduce its imports so the quantity of money will increase.
The correct option is C
<u>Explanation:</u>
The annual profit increase = $400,000
<u>The following formula is to be used in order to calculate the total profit enhancement in five years
</u>
The total profit increase in 5 years = 400000 multiply with 5 = $2,000,000 = $2 million
, As compared to cost of $1 million.
Thus, The correct option is answer (C) To take on the new salon because the expected marginal benefit ($2 million over 5-years) is greater than the estimated marginal cost ($1 million).
