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Pani-rosa [81]
3 years ago
11

Changing a problem culture typically does not involve

Business
1 answer:
kumpel [21]3 years ago
5 0

Answer:

a. altering the company's financial objectives.

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation (goal) and all efforts is channeled in the right direction rather than the symptoms.

2. Gathering of information: this helps to consider the options available in solving a problem effectively.

3. Consider your options: this helps to compare the available and viable solutions to the problem.

4. Weigh disadvantages and evaluate a solution: you weigh the disadvantages of each solution, before choosing the one with the least disadvantages.

In Business management, changing a problem culture typically does not involve altering the company's financial objectives because the problems that are related to organisational culture are social and more closely related to the behavior and belief of the employees.

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Answer:

a.

WACC = 0.07961 or 7.961% rounded off to 7.96%

b.

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Explanation:

a.

The weighted average cost of capital or WACC is the cost of a firm's capital structure. To calculate the WACC, we multiply the weight of each component of the capital structure by the cost of that component. The components of capital structure can be one or all of the following namely debt, preferred stock and common stock.

The formula for WACC is,

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WACC = 0.15 * 0.06 * (1 - 0.21)  +  0.1 * 0.05  +  0.75 * 0.09

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b.

The after tax cost of debt is calculated by multiplying the cost of debt by (1 - tax rate) to adjust for the tax advantage provided by debt as interest payments on debt are tax deductible.

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