Hello there!
I think you're answer would be -- His message did not set a clear and specific production of the target. Maybe, if he had looked over what really needed to be worked on, he could increase productivity in what really needed to be done. But, he gave no specific directions, only telling workers to "increase productivity".
Tell me if its wrong. Please... and thanks!
I hope this helps you!
~Alexa
Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
Thanks!
Answer:
Exposure to credit risk or interest rate risk.
Explanation:
Cost of capital refers to the average cost of equity and debt and this provides an insight into the capital structure of the company. Major factors affecting the cost of capital include;
a. The extent of international diversification: This will impact the possibility of the firm going bankrupt.
b. Access to international capital markets: These multinational companies have more access to reduced costs that stem from foreign financial support.
c. Size of the firm: The larger size of the firms will make these firms get more considerations from creditors.
d. Exposure to country risk: The risk of expansion also might lead to bankruptcy if things are not properly managed.
Answer:
.a. one year.
Explanation:
Expectation theory believes that the longer the maturity rate of a bond is the more interest it will generate, yet investing in two 1 year bonds may earn the same interest as one 2 year bond. Therefore in this scenario the bond with the lowest interest rate today is the one with a maturity of one year, due to it being the shortest bond to reach maturity.
The answer is "Without the innovation, no company can survive over the long run". Trends and consumer's demand of product always change through the changes in eras and times. A company must face and equalize this changes by providing an innovation in its product. Therefore, with this condition only, a company could survive over the long run.