Answer:
transactional, logistical, and facilitating functions
Explanation:
Answer:
a. McGregor's Theory Y.
Explanation:
McGregor developed a a theory of motivation in the workplace.
Theory X is an authoritarian management battle where employees have little creativity and expect to be told what to do.
Theory Y is more participative. Employees take responsibility for their deliverables in an environment that encourages motivation.
Employee creativity is encouraged under theory Y.
In the given scenario the employees were praised generously. If this motivated them to produce 50% more Panama's, then we are experiencing McGregor's theory Y.
Answer:
a. WACC of the company before bond sale = Risk Free Rate + Beta * (Market return - Risk Free rate)
= 2% + 0.80 * 10%
= 2% + 0.80*0.1
= 2% + 8%
= 10%
b. Market value of Debt after Bond sales = $40,000,000
c. Market Value of equity = Current Value of Equity + Debt * tax rate - Debt
= 50*4,000,000 + 40000000*25% - 40000000
= 200000000 + 10000000 - 40000000
= $170,000,000
d. Weight of equity = Market value of equity / Total value of equity
= 170000000 / 200000000 + 10000000
= 170000000 / 210000000
= 0.80952381
= 81%
e. Cost of debt after bond sale = YTM * (1 - tax Rate)
= 12% * 0.75
= 0.09
= 9%
f. Cost of equity after bond sale = Risk Free Rate + Beta * (Market return - Risk Free rate)
= 2% + 1.20 * 10%
= 0.02 + 0.12
= 0.14
= 14%
g. Adjusted WACC = weight of debt * Cost of debt + weight of equity * cost of equity
= 19% * 9% + 81% * 14%
= 0.0171 + 0.1134
= 0.1305
= 13.05%