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san4es73 [151]
3 years ago
8

The profits of West Side Grocery have dropped significantly over the last several months. After investigating, the owner realize

s that many of the store's departments are moving in the wrong direction. The owner recognizes that these departments need stronger and closer management, but she also knows she has not provided her managers with enough direction regarding her expectations for the store's goals and the employees' performance. This example shows how an organization can progress in the wrong direction as a result of ____.
Business
1 answer:
zubka84 [21]3 years ago
3 0

Answer: D) poor planning.

Explanation:

It is in the Planning Stage that expectations are penned down. If this is not set out, people will.not know what is expected of them and as such will move with no specified DIRECTION on projects. In such a situation, business objectives can rarely be met.

Indeed, Poor Planning is one of the major causes of LOW PRODUCTIVITY and PROFITABILITY which is what West Side Groceries is currently going through.

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Standard, Inc. reported EBIT of $35 million for last year. Depreciation expense totaled $20 million and capital expenditures cam
aleksandr82 [10.1K]

Answer:

$710.84 million

Explanation:

Net income = $35 million

Depreciation = $20 million

Capital expenditures = $7 million

Tax rate = 21%

D/E ratio = 0.4

Growth rate = 6%

Equity beta = 1.25

So, firm's asset beta = Equity beta/(1 + D/E*(1-T))

= 1.25/(1 + 0.4*(1-0.21))

= 0.94985

So, Free Cash Flow to the Firm= NI + Depreciation - Capital expenditures

= 35 + 20 - 7

= $48 million

Risk free rate Rf = 5%

Market risk premium = 7.5%

So, firm cost of capital using CAPM is Rf + Beta*(MRP)

Kc = 5 + 0.94985*7.5

Kc = 12.1239

So, Firms value using constant dividend growth model:

FV = FCF*(1+g)/(Kc-g)

FV = 48*1.06 / 0.121239-0.06

FV = 50.88 / 0.061239

FV = 830.8430901876255

FV = $830.84 million

Debt = $120 million

Market Value of equity = FV - Debt

Market Value of equity = $830.84 million - $120 million

Market Value of equity = $710.84 million

6 0
3 years ago
In a partnership, loans taken out by the general partners
Romashka-Z-Leto [24]

Answer:

aren't binding on the limited partners.

Explanation:

A  partnership is a form of business ownership where two or more individuals come together to establish a business venture. A partnership may consist of generals and limited partners.

General partners are actively involved in business operations. They manage the day to day activities of the business. Generals partners act on behalf of the business and have unlimited liabilities to the debt of the enterprise.

Limited partners are silent partners. They do not participate in managing the business. A limited partner, as the name suggests, has limited liability to the obligations of the business. Should a general partner take out a loan, a limited partner will be liable to the extent of his or her capital contribution.

4 0
3 years ago
The xyz company has two offices, one in chicago, and a brand new office in pittsburgh. to connect the two offices, they will nee
ikadub [295]
<span>You would want to get a broadband internet based phone that's based off a Linksys modem system. A multiple line phone per employee/contractor with voice mail capacities would be a must. For contracted employees (those who work for the business, but are not office-based) need mobile cell phones with the internet, email, and group and individual capabilities so they can be reached easily.</span>
7 0
4 years ago
Prepare journal entries to record each of the following four separate issuances of stock.
BigorU [14]

Answer:

subject?

Explanation:

6 0
3 years ago
Using the interest formula, compute the interest and maturity values for each of the following notes: Principal Interest Term Ra
Ad libitum [116K]

Answer:

The answer is:

A: I=$76,67    MV=$4076,67

B: I=$293,75  MV=$10293,75

C: I=$138,125 MV=$6638,125

D: I=$36,75    MV=$936,75

Explanation:

Notes are often a key component of how a business finances its operations. For purposes of accounting, it's important to be able to calculate the maturity value of a note to know how much a business will have to pay or receive when the note comes due.

In general, notes are a form of short-term commercial financing. The maturity value is the amount of money that the company would receive when the note comes due.

When you know the principal amount, the rate, and the time, the amount of interest can be calculated by using the formula:

I = P*r*t

I= Total interest

P= principal

r= interest rate

t= time

To calculate the Maturity Value you need to sum the principal to the total interest accumulated over time.

Maturity Value= Principal + Interest

<u>In this exercise:</u>

<u>A:</u>

Principal: $4000    r=11,5%       t=60 days

I=4000*0,115*(60/360)= $76,67

Maturity Value= 4000 + 76,67= $4076,67

<u>B:</u>

Principal: $10,000          r=11.75%        t=90 days

I=10000*0,1175*(90/360)= $293,75

Maturity Value= 10000+ 293,75= $10293,75

<u>C:</u>

Principal= $6,500   r=12.75%          time=60 days

I=6500*0,1275*(60/360)= $138,125

Maturity Value= 6500+ 138,125= $6638,125

<u>D:</u>

Principal= $900     r= 12.25%     time=120 days

I=900*0,1225*(120/360)= $36,75

Maturity Value= 900+ 36,75= $936,75

4 0
3 years ago
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