The model that requires a manager to assess her own style and her situational control is<u> "Fiedler's contingency model".</u>
The Fiedler Contingency Model was made in the mid-1960s by Fred Fiedler, a researcher who contemplated the identity and qualities of pioneers.
The model expresses that there is nobody best style of initiative. Rather, a pioneer's adequacy depends on the circumstance. This is the aftereffect of two components – "leadership style" and "situational idealness" (later called "situational control").
Answer:
e. The optimal capital structure simultaneously maximizes stock price and minimizes the WACC.
Explanation:
The optimal capital structure involves the combination of both debt and equity where debt is a type of loan which is needed to pay back in some years while the equity represents the ownership of the shareholder in the organization
So here the optimal capital structure represents the maximum stock price that minimizes the weighted average cost of capital
hence, the correct option is d.
This is answered using the Rule of 72. This is the easiest way to know how long an investment will take to double, given a fixed annual rate of interest
The rule of 72 is the period to double multiplied by the interest rate equal 72.
So to do this: Just divide 72 and 6. 72/6 = 12% would be the rate of return
Answer:
d. within the relevant range of operating activity, the efficiency of operations can change.
Explanation:
Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Generally, to use the cost-volume-profit analysis, financial experts usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.
3. All the units produced are sold i.e there is no change in inventory quantities during the period.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.
<em>Hence, the aforementioned are assumptions of cost-volume-profit analysis except that, within the relevant range of operating activity, the efficiency of operations can change.</em>
