The two measures of instability in economic growth are high unemployment rates and inflation
Answer:
WACC is 9.35%
Explanation:
In order for us to compute the weighted average cost of capital, we have to first find the cost of equity (Ke) and the cost of debt (Kd)
1. Ke can be found by using CAPM - Capital Asset Pricing Model.
CAPM Formula: Ke = Rf + b(Rm-Rf)
where Rf = Risk free rate; Rm = Return expected of the market; b = beta
Therefore = Ke = 3% + 0.9(11%-3%) = 10.2%
2. Kd = Coupon rate (1 - tax rate), coupon rate is 7%, tax rate is 35%
therefore Kd = 7 (1-0.35) = 4.35%
Lastly we apply the WACC Formula which is Ke* (equity value/Total value of equity and debt) + kd*(debt value/Total value of equity and debt)
We are not given the values of equity and debt, bur we are given the fractions; we will use the fractions.
Therefore: Ke* (equity value/Total value of equity and debt) + kd*(debt value/Total value of equity and debt) = (10.2%*85%)+(4.35%*15%) = 9.35%
ANSWER:
Issue: Oral agreement; without proper documentation of what was agreed upon.
Decision: Avarice will loss the case, and Joe will be set free by the court.
Support: Because Avarice does not have any valid prove to show that Joe accepted to repay Bob loans in case he fails to pay up, the court will assume Avarice is forging a claim on Joe. A withiness only comes to court to testify the validity of a prove. Because Avarice does not have any prove, the witness is as good as nothing.
The court will dismiss the case because Avarice became unethical by granting the request made by Joe without any signed agreement or recorded call conversation.
Answer:
When Andy Forsummer, the owner of Barcelona Restaurants Group, rejects management philosophies that stress employee social relations and employee happiness, he is refuting ideas championed by <u>Henri Fayol's administrative management.</u>
Henri Fayol's administrative management usually looks at the clear decision of labor, work ethics, employee and organizational culture and spirit. It stresses upon how employee social relations and employee happiness is crucial to the success of an organization.
