Answer:
1. It is not easy to get funds for a start up, as many banks do not consider it as a successful decision to provide loan to a start up, as the feasibility of recovery of loan cannot be identified and guaranteed.
2. Venture capitalists also faces the same issue as of bank, also they are large equity investors and tend to invest in even larger project.
3. Private investors do not blindly invest and rather are more cautious then banks or venture capitalists, as because they do not huge funds to invest, and with less amount of investment they need even higher assurance.
4. Public stock is never available for a start up as for public stock issue you need great credibility, and good previous record.
Write the story brief so the readers can paraphrase. they can basically rewrite it.<span />
Answer:
b. 8.82%
Explanation:
WACC = Cost of equity x Weight of equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt
Cost of Preferred Stock calculation :
Cost of Preferred Stock = Expected dividend / Market Price x 100
= $6 / $50 x 100
= 12 %
After tax cost of debt calculation :
After tax cost of debt = Interest x (1 - tax rate)
= 8 % x (1 - 0.35)
= 5.20 %
therefore,
WACC = 15% x 30 % + 12 % x 10 %+ 5.20 % x 60 %
= 8.82 %
Answer:
no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no
Answer:
The answer is: False
Explanation:
The "behavioral approach o management" and the "human relations movement" are basically the same thing.
The human relations movement was founded by sociologist Elton Mayo in the 1930s after his famous Hawthorne experiments. He would increase or decrease the light intensity in the factory and observed how it affected productivity.
He discovered that after increasing or decreasing lights the productivity always raised. So what really altered productivity was the fact that employees felt that management cared about them.
