Answer:
The Rubber Meets the Road has issued shares at discount to market price to its shareholders (Right Issue)
Explanation:
These tactics are used by the company who wants to defend itself from the acquirer because they think they will damage the company values, culture, restructure business processes and change in people who work and are part of the organization. In other words they think are a family and will loose each other and the associated benefits now they are enjoying so what they do is they upper management issues the rights to its existing shareholders at discount to market value.
The investment doesnot seems attractive as the benefit are no more if the acquirer pays extra dollars to buy the 50% shares which have been increased due to right issue. So the statement hostile takeover means the defending strategy of the firm that the acquirer wants to acquire its control by buying more than 50% shares.
Answer:
Weight of equity = 0.31067 or 31.067% or 96/309
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common equity respectively
To calculate the weight of equity in WACC computation, we first need to find out the Market value(MV) of each component and the market value of the overall capital structure.
MV of common equity = 8 million shares * 12 per share
MV of common equity = $96 million
MV of Preferred stock = 6 million shares * 30 per share
MV of Preferred stock = $180 million
The bonds are usually have a par value of $1000 unless specified otherwise.
MV of debt = 30 thousand * $1000 * 110%
MV of debt = $33 million
MV of total capital Structure = 96 + 180 + 33 => $309 million
Weight of equity = 96 / 309
Weight of equity = 0.31067 or 31.067% or 96/309
Answer:
Natural attrition
Explanation:
Attrition means a situation whereby employees starts to leave an organization, this can be measured with a criterion known as Attrition rate. Attrition rate helps an organization to determine the numbers of employee leaving an organization either voluntarily or they are laid off.
Attrition can be due to
a. Better job offer outside.
b. Poor working condition.
c. Lack of growth on present work.
d. Problem with work life balance.
Types of Attrition.
Voluntary attrition, Involuntary attrition, and Retirement.
Answer:
has a logical flow that a customer can easily follow.
Explanation:
No matter how good the deal is, if the customer cannot understand it, then it's no good. Customers must be able to understand what you are offering to them, and they must feel that their needs are being addressed by your offer.
A sales proposal is only going to be effective if it focuses on satisfying the customer's needs and how the customer perceives value. Canned proposals are usually not very effective since they are basically similar for every type of customer, it pays little attention to the buyer's requests or needs. Written proposals provide permanent record of the offer, intentions and possible claims.
But a salespersons ability to uniquely address a buyers problems and needs can make a huge difference during a sales presentation and proposal.
Answer:
A. Market Timing
Explanation:
Based on the information provided within the question it can be said that the term being described within the question is called Market Timing. Like mentioned in the question this term refers to a strategy of buying and selling different financial assets, usually by trying to take advantage of price discrepancies in the short term.
