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Phoenix [80]
3 years ago
9

Trent Automobiles Inc. was expecting a large shipment of scrap metal a week earlier. As the shipment did not arrive on time, the

supply manager at Trent Automobiles was forced to place another order for the same quantity of scrap metal from a local manufacturer._____________
Business
1 answer:
elena-s [515]3 years ago
8 0

Answer:

Lack of efficiency.

Explanation:

As Trent Automobiles Inc. was expecting a large shipment of scrap metal and due to the fact that it could not arrive on time, the only way to compensate the loss was to make an urgent order for same quantity of scrap metal from a local manufacturer, which led the company to compromise on the quality. If proper track was kept and all the upcoming scenarios had been calculated before hand with a ready substitute raw materials before hand, this would have been not the result. Thus, this indicates a complete lack of efficiency from the side of management of the company.

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The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit
zimovet [89]

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12.75 %

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