Answer:
Devil's advocacy.
Explanation:
Devil's advocacy is defined as a person who pretends in a discussion. He/she pretends to be against an idea or plan many people support so as to make people discuss it in more detail. Here Rosana uses devil's advocacy on Henry by telling him to criticize the group's discussion.
Answer:
D) have customers who operate in many different parts of the country.
Explanation:
A lockbox is basically a bank mailing address where a company's clients can send their payments to. It is similar to mailbox that receives letters, only that this one receives checks and cash. The bank is in charge of opening the lockbox and depositing the cash and checks to the company's account, and reporting the information.
Answer:
For whom to produce.
Explanation:
This fundamental question tends to answer the sector of the customers the company will produce for. It reflects the customer's buying power and willingness.
- For example, If the customer we are producing has enough money, so we should go for first come first served basis, OR, If the customer lacks money and it hinders the customer to watch a movie so we motivate them to participate in a lottery so are in guise targeting that section as well.
Answer:
$353,800
Explanation:
Working Capital = Current Assets - Current Liabilities
where,
CA = $146000 + $189000 + $155000 + $94800 = $584,800
CL = $206000 + $25000 = $231,000
therefore,
Working Capital = $584,800 - $231,000 = $353,800
Answer:
After tax cost of debt is 5.239%
Explanation:
Given:
Face value = $1,000
Bond price = $895
Coupon payments = 0.035×1,000 = $35 (coupon payment is paid semi-annually so 7% is divided by 2)
Maturity = 20×2 = 40 periods
Using bond price formula:
Bond price = Present value of face value + present value of coupon payments
Use excel function =RATE(nper,pmt,PV,FV) to calculate cost of debt.
substituting the values:
=RATE(40,35,-895,1000)
we get Pre-Tax cost of debt = 4.03% semi- annual
Annual rate is 4.03%×2 = 8.06%
Note: PV is negative as bond price is cash outflow.
After tax cost of debt = 8.06(1 - 0.35)
= 5.239%