Answer:
decision rights, rewards, and evaluation systems.
Explanation:
The aspects the decision firm looked into looked are decision rights, rewards, and evaluation systems.
1. Decision rights:
The person who makes all the relevant decisions should have all informations available. People with relevant information should be made to take key decisions. This would increase the possibility of the organization being in the right
direction.
2. Rewarding: this is rewarding those individuals who make the right decisions. Employees who have decision making rights should be rewarded with incentives when they make the right decisions.
3. Evaluation systems: These should be put in place to check the performance of individuals and business units.
Answer: $31,513.65
my monthly payment (principal) would be closest to $31,514
Explanation:
Using compound interest formula below to find the principal
A = p (1 + r/n)^nt
A= amount = $34,000
r = annual nominal rate = 1.9% = 0.019
n = number of compounding ; monthly compounding means 12 interest payments in a year
P= principal
t= time in years 48months = 48/12years = 4years
34,000 = p (1 + 0.019/12)^12(4)
34,000 = p (1 + 0.00158333333)^48
34,000 = p ( 1.00158333333)^48
34,000 = 1.07889755p
Divide both sides by 1.07889755
P = $31,513.6502
≈$31,514 to nearest whole number.
<span>Many companies make sugar free soft drinks , which are flavored by synthetic chemicals the drinks usually contain only one or two calories per serving.</span>
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%
The free cash flow can be calculated as below:
Revenue 12000000
Less: Expense (8000000)
Less: Depreciation (1500000)
Earnings Before Tax 2500000
Less Tax (750000)
Earnings after tax 1750000
Add Depreciation 1500000
Total Cash Earnings 3250000
Less: Change in Working Capital (500000)
Less : Purchase of Asset (700000)
Free Cash Flow 2050000
Thus Free Cash Flow can be calculated as above.