Answer:
No, it is a bad idea to use only the cost of debt
Explanation:
Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.
Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.
When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.
Answer:
Return on equity = 13.5 %
Explanation:
given data
tax burden ratio = 0.75
interest burden = 0.6
leverage ratio = 1.25
return on sales = 10%
sales assets = $2.40
to find out
What is the firm's ROE
solution
we get here Return on equity (ROE) that is express as
Return on equity = tax burden ratio ×leverage ratio × interest burden ratio × return on sale × sales .......................1
put here value we get
Return on equity = 0.75 × 1.25 × 0.6 × 10% × 2.40
Return on equity = 0.75 × 1.25 × 0.6 × 0.10 × 2.40
Return on equity = 0.135
Return on equity = 13.5 %
Answer:
In this scenario, <u>LISA</u> has both an absolute advantage in food preparation, and <u>LISA</u> has a comparative advantage in food preparation.
Assume that initially, Sam and Lisa are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by <u>1</u>.
Before they were getting 3 new customers since Sam got 2 and Lisa 1, but since Sam will only look for clients, then the total number of clients will be 4 (or 1 more).
Explanation:
It takes Sam 12 hours to prepare the food for an event and 3 hours of effort to get each new client.
- Sam's opportunity cost of preparing food = 12/3 = 4 new clients
- Sam's opportunity cost of getting new clients = 3/12 = 0.25 of food preparation
For Lisa, it takes 10 hours to prepare food for an event and 5 hours to get a new client.
- Lisa's opportunity cost of preparing food = 10/5 = 2 new clients
- Lisa's opportunity cost of getting new clients = 5/10 = 0.5 of food preparation
The sales rep on a phone call with a prospect controlling the conversation should do the following first:
- a) Ask the prospect what she hopes to get out of the call to encourage her to re-focus.
<h3>Why does a phone call with a prospect matter?</h3>
The phone call should be used to pitch the firm's products and services to meet the prospect's pain points.
To make the phone call successful, the sales rep should take these steps:
- Develop a clear goal for the sales call.
- Ask relevant questions, giving the prospect more opportunity to talk.
- Discover the prospect's pain points.
- Utilize every opportunity to pitch the firm's brand.
<h3>Answer Options:</h3>
a) Ask the prospect what she hopes to get out of the call to encourage her to re-focus
b) Tell the prospect that to work together well, she needs to follow the rep's call structure
c) Incorporate what the prospect says into his talking points when there's an opening
d) Offer to set up an in-person appointment to discuss the sales process in more detail
Thus, the first action of the sales rep in such a situation is <u>Option A</u>.
Learn more about making sales pitches and calls at brainly.com/question/6890728
Answer:
d. Deep-level diversity
Explanation:
The term diversity includes the differences that are possessed by the individuals and that distinguishes them from each other. The variation in physical attributes, beliefs, nationality, religion and other such aspects helps in building what is termed to be diversity.
Deep-level diversity is characterized with the attributes that are non-observable. The beliefs, ideas, values and religion are the attributes of deep-level diversity.
According to the given excerpt, the cultural backgrounds and outdoor interests are the aspects that are unobservable and therefore grouped under deep-level diversity.
