Answer:
Thanks for the fact
Explanation:
Can I have brainliest pls?
Answer:
The correct answer is: Develop findings.
Explanation:
The Marketing Research Approach is a study carried out to contribute to the decision-making of a company mainly over the introduction of a new product. The approach has five (5) steps: define the problem, develop findings, collect relevant data and information, analyze the information, and take action.
After recognizing what the problem is and clearly know what the study will focus on, the next step implies developing findings. At this stage, different kind of information is collected and studied to determine if they would be useful for the research or at least provide an idea of what is happening related to the issue that causes the research.
Answer:
I have no idea to wat the answer is
Answer:
Job characteristics theory could guide Andrea as she considers ways of combining areas for the staffers by developing a more challenging versatile job functions that will stimulate performance.
Explanation:
The Job Characteristics Model is a theory that is based on the idea that a task in itself is the key to the employee's motivation. In short, a boring and monotonous job is disastrous to an employee's motivation whereas a challenging, versatile job has a positive effect on motivation.
According to the tenets of job characteristics model, a more challenging and versatile job will give higher satisfaction potential than the pre-downsizing versions which could be counter productive and depressing.
Answer:
C) Would decrease
Explanation:
a. Is this a fair deal for you? Justify your answer with an engineering economics analysis and discussion of the situation by calculating the Net Present Value (NPV) for the scenario.
b. Draw a Cash Flow Diagram for this situation.
Answer:
a. It is not a fair deal for me.
The question is how much is $1,000 today when received in 12 months' time from now. The present value of $1,000 at 5% effective interest rate is $952 ($1,000 * 0.952). The other repayment of $1,100 in 2 years' time from now is worth $997.70 today at the 5% effective interest rate. This implies that my friend is repaying me $1,949.70 in present value terms.
For friendship sake, I may lend her the money, but in economic analysis terms, the NPV value will yield a negative value of $50.30 ($2,000 - $1,949.70). My friend is not actually paying me back the amount I would lend to her. She is paying me less than I actually would lend to her.
b. Cash Flow Diagram:
Year 1 Year 2
F1 F2
$1,000 $1,100 (Inflows)
Fo⇵.................⇵.......................⇵...........................⇵n period
Year 0
$2,000 (outflows)
Explanation:
The cash flow diagram for this loan is the graphical representation of the timing of the cash flows with a clear marking of the repayments made by my best friend in two instalments and the $2,000 that I lent to her. This cash flow diagram presents the flow of cash as arrows on a timeline scaled to the magnitude of the cash flow, where outflows are down arrows and inflows are up arrows.
The Net present value (NPV) of this loan shows the difference between the present value of repayments by my best friend and the present value of $2,000 that I lent to her over a period of 2 years. To obtain this difference, the present values of cash inflows of $1,000 in a year's time and $1,100 in two years' time are determined using the discount factor table based on the given interest rate of 5%.
b. What is the company's unlevered cost of equity capital?
c-1. What would the cost of equity be if the debt-equity ratio were 2?
c-2. What would the cost of equity be if the debt-equity ratio were 1.0?
c-3. What would the cost of equity be if the debt-equity ratio were zero?
Answer: a. WACC = Ke(E/V} + kd(D/V)(1-T)
9.1 = ke(100/160) + 6.4(60/160)(1-0.22)
9.1 = ke(0.625) + 2.4(0.78)
9.1 = 0.625ke + 1.872
9.1-1.872 = 0.625ke
7.228 = 0.625ke
ke = 7.228/0.625
ke = 11.56%
b. WACC = Ke(E/V)
9.1 = ke(100/160)
9.1 = 0.625ke
ke = 9.1/0.625
ke = 14.56%
c-1. WACC = Ke(E/V} + kd(D/V)(1-T)
9.1 = ke(1/3) + 6.4(2/3)(1-0.22)
9.1 = 0.3333ke + 3.328
9.1 - 3.328 = 0.3333ke
5.772 = 0.3333ke
ke = 5.772/0.3333
ke = 17.32%
c-2. 9.1 = ke(1/2) + 6.4(1/2)(1-0.22)
9.1 = 0.5ke + 2.496
9.1 - 2.496 = 0.5ke
6.604 = 0.5ke
ke = 6.604/0.5
ke = 13.21%
c-3. 9.1 = ke (0/0) + kd (0/)
ke = 0%
Explanation:
a. in the a part of the question, the debt-equity ratio was 0.6 ie 60/100. Thus, the value of the firm equals 160. The figures given in the question were substituted in the formula. Cost of equity was not provided, therefore, it becomes the subject of the formula. The variables are defined as follows:
ke = Cost of equity = ?
kd = Cost of debt = 6.4%
E = Value of equity = 100
D = Value of debt = 60
V = Value of the firm ie E + D = 100 + 60 = 160
T = Tax rate = 22% = 0.22
b. In this part of the question, only equity would be considered since we are calculating unlevered cost of equity. The part of the formula that deals with debt will be ignored.
c-1. In this case, the debt-equity ratio is 2. Therefore, debt equals 2 while equity is 1. The value of the firm becomes 3. There is need to substitute these values in the original formula while other variables remain constant.
c-2. In this scenario, the debt-equity ratio is 1. Thus, equity is 1 and debt is also 1. The value of the company changes to 2. These new values would be substituted in the formula in order to obtain the new cost of equity.
c-3. since the debt-equity ratio is 0, therefore, the cost of equity equals 0.
a. The company's cost of equity capital is 8.6014%. b. The company's unlevered cost of equity capital is 5.8729%. c-1. If the debt-equity ratio were 2, the cost of equity would be 8.6788%. c-2. If the debt-equity ratio were 1.0, the cost of equity would be 8.8894%. c-3. If the debt-equity ratio were zero, the cost of equity would be 5.8729%.
a. The formula to calculate the cost of equity capital is: Cost of Equity = WACC - (Debt/Equity) * (WACC - Cost of Debt) * (1 - Tax Rate). So, by plugging in the given values, we get Cost of Equity = 9.1% - 0.6 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 0.6 * 2.7% * 0.78 = 9.1% - 0.4986% = 8.6014%.
b. The unlevered cost of equity capital can be calculated using the formula: Unlevered Cost of Equity = Cost of Equity / (1 + (Debt/Equity) * (1 - Tax Rate)). So, by plugging in the given values, we get Unlevered Cost of Equity = 8.6014% / (1 + 0.6 * 0.78) = 8.6014% / 1.468 = 5.8729%.
c-1. If the debt-equity ratio were 2, the new cost of equity can be calculated using the same formula as in part a. By plugging in the new debt-equity ratio, we get Cost of Equity = 9.1% - 2 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 2 * 2.7% * 0.78 = 9.1% - 0.4212% = 8.6788%.
c-2. If the debt-equity ratio were 1.0, the new cost of equity can be calculated using the same formula as in part a. By plugging in the new debt-equity ratio, we get Cost of Equity = 9.1% - 1.0 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 1.0 * 2.7% * 0.78 = 9.1% - 0.2106% = 8.8894%.
c-3. If the debt-equity ratio were zero (meaning no debt), the new cost of equity would be the same as the unlevered cost of equity calculated in part b, which is 5.8729%.
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