The last one is definitely not the answer. I am also trying to figure this out but I know for a fact the last one isin't, I think it is the 3rd option! i looked up the defenitions of the others and the one that seems right is the 3rd. Goodluck!
I believe the answer is: Strategy
Strategy reefers to planned decision that is used to achieve a certain goal. In the example above, the goal of the hotel is to survive the downturn.
Conley realized that front-employees are the most curical resources in such situation since they are basically the main people that directly handled the customers. So, he choose a strategy to improve their general welfare and sacrificing his own needs.
Answer:
$50,400
Explanation:
To do this first start by multiplying .12 x 35,000. The answer should be $4,200. After this multiply 4,200 by 12 in order to get the amount of money earned over a 12 month period. This will give you $50,400.
Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%
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