Answer:
C. strategic planning
Explanation:
Strategic planning involves the way or process an organization adopts in determining its strategy, direction and making decisions on how to allocate resources better and implement strategy. It is also the technique which guides and controls the implementation of strategy.
Tools used for strategic planning includes.
1. Growth share matrix.
2.PEST analysis.
3.SWOT analysis.
4.Scenerio planing. etc.
Answer:
See the attached pictures for detailed answer.
Explanation:
See the attached pictures for explanation.
Answer:
10.12 %
Explanation:
Weighted Average Cost of Capital (WACC) is the cost of permanent sources of capital pooled together. It shows the risk of the business and is used to evaluate projects.
WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
<u>Remember to use the After tax cost of debt :</u>
After tax cost of debt = Interest x (1 - tax rate)
= 10% x ( 1 - 0.40)
= 6.00 %
<u>Cost of equity :</u>
Cost of equity = Return from Risk free security + Beta x Risk Premium
= 4.00 % + 1.8 x 8.00%
= 18.40 %
<u>Cost of Preference Stock :</u>
Cost of Preference Stock = Dividend / Market return x 100
= $2.50 / $ 25 x 100
= 10%
therefore,
WACC = 18.40 % x 30 % + 6.00 % x 60 % + 10.00% x 10%
= 10.12 %
thus,
Ford's weighted average cost of capital is 10.12 %
Answer:
A net cash outflow or cash used up of $20,000
Explanation:
The statement of cash flows show the movement in cash balances between the start and end of an accounting period. This movement is as a result of 3 groups of activities namely; operating, investing and financing activities.
Cash activities related to elements of working capital are recognized in the operating section. An increase in a current asset other than cash is treated as an out flow of cash while an increase in a current liability is treated as an inflow of cash and vice versa.
Hence the net effect on cash from operations under the indirect method
= -$43,000 + $23,000
= -$20,000
