Answer:
e. Minimize the weighted average cost of capital (WACC)
Explanation:
A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.
B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.
C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.
D: It is out of question because target capital structure cannot obtain the bond rating.
E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.
Answer and Explanation:
Given that this is a second price bid auction whereby the second highest bid is the price that the highest bidder pays for the item up for auction sale, so that b1>b2 then b1 gets item for the price of b2.
Truthfulness of true value is the dominant strategy here which means each player should aim to be truthful with their bid regarding their true value regardless of what other bidders are bidding. Therefore truthfulness of value is the optimal strategy with the best payoff for bidders
Answer:
The correct answer is: oligopoly.
Explanation:
A market structure where there are only a few firms is called an oligopoly market. These firms can be producing either identical products or differentiated products.
Because of few firms, there is a high degree of competition in the market. The firms are price makers and face a downward sloping curve.
There is interdependence in the market such that the economic decisions of a firm affects the price, profits and output level of its rivals. So the firms have to consider the reaction of its rivals before making an economic decision.
Answer:
Attributes of an effective organization structure are given below.
1. An effective organizational structure facilitates attainment of objectives through proper coordination of all activities
2. In a effective organizational structure, the conflicts between individuals over jurisdiction are kept to a minimum
3. It eliminates overlapping and duplication of work.
4. It decreases likelihood of runarounds
5. It facilitates promotions of personnel
6. It aids in wage and salary administration
7. Communication is easier at all levels of organizational hierarchy
8. A well-structured organization provides a sound basis for effective planning
9. It results in increased cooperation and a sense of pride among members of the organization
10. It encourages creativity
