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vodka [1.7K]
3 years ago
5

In her role as a grocery store general manager, Shara is able to make changes that affect customers, store employees, and indivi

dual department managers.This is an example of the _____ effect.
A. efficiencyB. multiplierC. responsibilityD. value
Business
1 answer:
Mars2501 [29]3 years ago
3 0

Answer:

B, multiplier

Explanation:

A multiplier effect simply means having the impact of some action/decision(s) (management skills) felt in multiple ways/areas of an organization.

In the case of Shara as grocery manager, she has been able to affect multiple areas of the store ranging from customers, employees, as well as individual departments through her management skills thus giving her the multiplier effect.

Cheers.

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You have the following data on The Home Depot, Inc. Market value of long-term debt: $20,888 million Market value of common stock
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Expected rate of return on equity under the new capital structure is 9.75 %

Explanation:

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Market value of long-term debt =  $20,888 million

Market value of common stock =  $171,138 million

Beta =  1.04

Yield to maturity at 10 year t = 2.167%

Expected return on equity = 8.895%

Marginal tax rate t =  35%

solution

we get here cost of unlevered equity  by the cost of levered equity formula that is  

cost of levered equity  = rSU + (rSU-rD) ×  (1-t) × (D÷S)    .................1

here rSL is cost of levered equity and  rSU is cost of unlevered equity and rD is before tax cost of debt and D is  value of debt and S is value of equity.

put here value and we will get  

8.895% = rSU + (rSU-2.167%) ×  (1-35%) × (20,888÷171,138)

solve it we get

rSU = 0.084005

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cost of levered equity for new capital structure will be

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