Answer:
6.64%
Explanation:
The pretax cost of debt is the Yield to Maturity (YTM). Since the coupons are paid semiannually, adjust the duration and the coupon payment amount to semi-annual terms.
You can solve for the YTM using a financial calculator with the following inputs;
Maturity of the bond; N = 20*2 = 40
Face value ; FV = 1000
Semi-annual coupon payment ; PMT = (7%/2)*1000 = 35
Current price of the bond; PV = -1.04*1000 = -1040
Then compute the semiannual interest rate ; CPT I/Y = 3.318%
Therefore, pretax cost of debt; YTM = 3.318 *2 = 6.64%
Answer:
The key driver behind Quick clean's strategic position is Option D: low-key input factors.
Explanation:
Strategic drivers help shape an organization. They can be forces both which are external and internal. External drivers can be like the competition of the firm, customer needs, taxes and so on. Internal factors may include profit goals, office politics, input which the organization is using to create its products and so on.
In the given scenario, Quick clean outsources its production to the manufacturers where the can get unskilled labor at low wages. Thus, it is their key driver as it helps them to get labor who take less salary, so their input cost is low and they are able to manufacture products and save the money they would use for workers who might more wages. Thus, 'Option D' is the most appropriate key driver.
Answer:
reschedule for next week and I will be there in a few minutes to
Answer:
Provides a more direct incentive in small firms than in large firms.
Explanation:
Profit sharing plan can be defined as a contribution plan in which the management of a company shares part of its profit with the employees. This could motivate and inspire the employees to work efficiently towards the growth of the organisation.
Profit sharing plan gives the employees a sense of ownership, this would inspire them to work harder to ensure the success of the organisation.
