the traditional approach to strategic control is sequential. which of the following is not one of the steps in the sequence?

Answers

Answer 1

lower and middle management set strategic corporate goals is not one of the steps in the sequence.

The purpose of strategic controls is to direct the organisation in the direction of its long-term strategic goals.

After a strategy has been chosen, it is gradually put into practise to help a company navigate a quickly changing environment.

The assumptions made by management regarding a variety of yet-to-happen events form the basis of strategies, which are forward-looking.

A standard is used as a benchmark in traditional techniques to control. After finishing the task at hand, the manager assesses it and makes use of the results to guide subsequent efforts. Although not worthless, this tactic is not the best way to keep a strategy under control.

To know more about Strategic control here

https://brainly.com/question/16691030

#SPJ4


Related Questions

Feed the Hungry Children, a (fictitious) not-for-profit tax-exempt entity under IRC Sec. 501(c)3, has been in operation for six years. The mission of the group is to provide healthy breakfast meals to children in inner city schools, so they can best learn. A wealthy local philanthropist has been meeting with the organization hoping to change the direction of the organization in return for a $1,000,000 permanent endowment donated to the group. While these negotiations were taking place this year, the organization suspended its normal operations. The draft of the Form 990 for this fiscal year shows 0 revenues and 0 expenses for this fiscal year and penciled in is a $1,000,000 gift from the philanthropist. The treasurer of the Board is drafting the Schedule A for the Form 990 in preparation for reporting to the Board whether the organization's status has changed form a public charity to a private foundation. Go to the www.irs.gov website and obtain Form 990, Schedule A. In your own words, construct an argument to support why this tax-exempt entity is still a public charity.

Answers

Despite the suspension of normal operations and the potential $1,000,000 gift from a wealthy local philanthropist, there is still an argument to support that Feed the Hungry Children, the not-for-profit tax-exempt entity, remains a public charity.

1. Review the requirements for a public charity: According to IRC Sec. 501(c)3, a public charity must receive a substantial part of its support from public contributions and grants and be organized and operated for charitable purposes.

2. Examine the mission and purpose: Feed the Hungry Children's mission is to provide healthy breakfast meals to children in inner city schools, with the aim of helping them learn better. This aligns with a charitable purpose focused on improving the well-being of children and promoting education.

3. Consider the organization's history: Feed the Hungry Children has been in operation for six years, consistently providing healthy breakfast meals to children in need. Its long-standing commitment to charitable activities demonstrates a track record of serving the public interest.

4. Evaluate the potential gift: The $1,000,000 gift from the local philanthropist, although substantial, does not automatically change the organization's status from a public charity to a private foundation. The organization's eligibility is determined by its overall sources of support, not a single donation. If the gift does not significantly alter the public support test, Feed the Hungry Children can still maintain its public charity status.

5. Analyze the Form 990, Schedule A: The treasurer of the Board is preparing the Schedule A for the Form 990, which provides information about the organization's public support and support schedule. By reviewing this form, it will be possible to determine whether the organization's public charity status has changed or if it still meets the required criteria.

6. Document the argument: Compile the findings from the review, emphasizing the organization's charitable purpose, its history of serving the public, and the evaluation of the potential gift's impact on public support. Present these points in a well-structured and persuasive argument to support the conclusion that Feed the Hungry Children remains a public charity.

It is important to consult with legal or tax professionals for accurate and specific advice in interpreting tax laws and regulations related to the organization's status.

For more such questions on philanthropist, click on:

https://brainly.com/question/11307464

#SPJ8

32 POINTS! Please answer QUICKLY! Giving away a product for free can be a good business practice. Why is this TRUE?

A.
When those free items make it into the hands of potential consumers, the business receives ongoing advertising through visibility.

B.
Even if every single person throws away the free product, the company hasn’t wasted any time, resources, or money.

C.
When a consumer doesn’t have to make a purchase, the consumer may become frustrated with the process.

D.
A free product keeps the consumer from buying an additional product from the same company.

Answers

I think it’s A

Common sense; and personal experience. If you get something for free but you often use it or carry it around that’s free advertising & if you like it you’ll most likely come back

When those free items make it into the hands of potential consumers, the business receives ongoing advertising through visibility is this TRUE.  Thus option A is correct.

What is business?

A person who produces items or provides a service with the intention of selling it for a profit is engaging in business. An innovative company or group that engages in business roles is referred to as a corporation. They could be industrial, professional, or something else.

Advertising, buying, and distributing goods to customers or other firms are all included in marketing. If you receive an item for nothing but use it frequently or take it around, it serves as a free advertisement, and if you love it, you'll probably return it.

Businesses that adopt this attitude run the significant danger of concentrating too intently on their own business and lose focus of the true goal. Therefore, option A is the correct option.

Learn more about business , Here:

https://brainly.com/question/15826604

#SPJ2

A company purchased $10,300 of merchandise on June 15 with terms of 2/10. n/45, and FOB shipping point. The freight charge, $650, was added to the .amount. On June 20, it returned $1,040 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:_________
a. $9,224.
b. $10,590
c. $10.950.
d. $10.690.
e. $9,725.

Answers

b should be that correct answer

b) Find the standard deviation and the coefficient of variation of the following data. 25 Marks Interval Frequency Interval Frequency 3.00-3.25 6 4.00-4.25 47 3.25-3.50 19 4.25-4.50 29 3.50-3.75 35 4.50-4.75 15 3.75-4.00 44 4.75-5.00 5

Answers

The standard deviation is 0.4182 and the coefficient of variation is 10.5%.

Given the following data Interval Frequency 3.00-3.25 64.00-4.25 473.25-3.50 194.25-4.50 293.50-3.75 354.50-4.75 153.75-4.00 445.00-4.75 5 The formula for finding the standard deviation is:\($$ \sigma =\sqrt{ \frac{\sum f(x-\overline{x})^2}{N}} $$\)

The table below shows the calculation; Interval \($X$ Midpoint ($X_i$)\) Frequency \(($f$) $x-\bar{x}$ $f(x-\bar{x})$ $(x-\bar{x})^2$ $f(x-\bar{x})^2\)

$3.00-3.25 3.125 6 -0.725 -4.35 0.525625 3.153.25-3.50 3.375 19 -0.475 -9.025 0.225625 4.279.50-3.75 3.625 35 -0.225 -7.875 0.050625 1.773.75-4.00 3.875 44 0.025 1.1 0.000625 0.274.00-4.25 4.125 47 0.275 12.925 0.075625 3.554.25-4.50 4.375 29 0.525 15.225 0.275625 7.994.50-4.75 4.625 15 0.775 11.625 0.600625 9.01.75-4.00 4.875 5 1.025 5.125 1.050625 5.25 \($\sum f=200$  $\sum f(x-\bar{x})= 3.15$  $\sum f(x-\bar{x})^2= 35.01$\)

The variance is: \($ \sigma^2 =\frac{\sum f(x-\overline{x})^2}{N} $$\sigma^2=\frac{35.01}{200}=0.1751$\)

Therefore, the standard deviation is: \($$ \sigma=\sqrt{ \sigma^2} $$$ \sigma=\sqrt{ 0.1751}=0.4182$\)

The formula for finding the coefficient of variation is:$$ C.V = \(\frac{\sigma}{\overline{x}} \times 100\% $$\)

The coefficient of variation is:$$ C.V = \(\frac{0.4182}{3.985} \times 100\% $$$C.V = 10.5\%$\)

Therefore, the standard deviation is 0.4182 and the coefficient of variation is 10.5%.

For more such questions on standard deviation

https://brainly.com/question/475676

#SPJ8

Not heading back to school due to high
medical bills falls under which SMART goal?
A. Specific
B. Measurable
C. Attainable
D. Realistic

Answers

Answer:

The answer is D, hope this helped!

Explanation:

The answer is D because its a realistic thing to have bills and sometimes you have to take risks or youll have nothing. <3

The purpose of using control charts is to
Select one:
a. detect the causes of non-conformities
b. None of the above
c. determine if a process is performing within specifications
d. evaluate process performance over time
e. determine how to recreate the process

Answers

The purpose of using control charts is to evaluate process performance over time (d). Control charts are used to monitor the output of a process over time and detect any significant changes or deviations from the expected performance. This allows managers to identify potential problems with the process and take corrective action as needed to keep the process operating within specifications. Control charts are not typically used to detect the causes of non-conformities or to determine how to recreate a process.

A department is looking for an entry-level cashier. One of the job applicants is a cashier with 30 years of experience as a cashier. The department manager feels that this candidate is overqualified for the job and is likely to be bored and leave the job in a short time. Instead, they want to pursue a candidate with 6 months of work experience who seems like a better fit for the position.

Answers

The reason why the manager wants the person with 6 months of experience is the fact that a person with 30 years of experience is overqualified for an entry level position.

What is an entry level position?

An entry level position is a job that is designated for the people that have just left school.

The kind of people that are fitted for such positions are those that have just graduated from the university.

The person with 30 years of experience does not fit into this category.

Read more on entry level here:

https://brainly.com/question/14689930

The difference between public sector and private is that public sector usually have the purpose of protecting the good of the public. private sector on the other hand is owned by private individuals instead of the government.

Answers

The difference between the public sector and the private sector is that the private sector is owned by private individuals while the public is owned by the government on behalf of the people so this is TRUE.

How are the public and private sector different?

The public sector refers to industries and companies that are owned by the government of a nation on behalf of the people of that nation. This is to ensure that the public good is protected.

The private sector on the other hand is owned by private individuals who act in such a way that they make profits and take those profits instead of the nation.

Find out more on the public and private sectors at https://brainly.com/question/11503492

#SPJ1

Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $216,000. Estimated machine usage is 2,700 hours. The company assigns overhead based on machine hours. Job No. 551 used 90 machine hours.

Required:
a. Compute the predetermined overhead rate.
b. Determine the amount of overhead to allocate to Job No. 551.
c. Prepare the entry to assign overhead to Job No. 551 on January 15.

Answers

Answer:

1. Predetermined Overhead Rate = Manufacturing overhead costs  / Machine Hours

Predetermined Overhead Rate = $216,000/2,700 hours

Predetermined Overhead Rate = $80 per machine hour

2. Allocated overheads =Predetermined Overhead Rate * Machine hours used by Job 551

Allocated overheads = $80 * 90 machine hour

Allocated overheads = $7,200

3. Date     Description                             Debit     Credit

 15/01     Work In Progress Inventory    $7,200      

                   Manufacturing overhead                   $7,200

               (To record allocation of overheads towards Job 551)

What is the difference between final goods and intermediate goods?

Answers

A) Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use.

B) Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods.

Final goods and intermediate goods are terms used in economics to distinguish between different types of goods in the production process. Here's a breakdown of the difference between the two:

1. Final Goods:

Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use. These goods are ready for consumption and do not undergo further processing or transformation before reaching the final consumer. Examples of final goods include food products, clothing, electronics, furniture, and vehicles. Final goods are the end result of the production process and are intended for final consumption or use.

2. Intermediate Goods:

Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods. They are not intended for final consumption but are instead used as raw materials, components, or capital goods in the production process. Intermediate goods undergo further processing or transformation before being included in the final goods. Examples of intermediate goods include raw materials like steel or wood, components like circuit boards or engines, and machinery or equipment used in production.

The key distinction between final goods and intermediate goods lies in their purpose and stage in the production process. Final goods are produced for the ultimate satisfaction of consumers' needs and are ready for consumption, while intermediate goods are used in the production of other goods and undergo further processing.

It's important to note that when calculating a country's Gross Domestic Product (GDP), only the value of final goods is considered. Intermediate goods are excluded to avoid double-counting, as their value is already included in the final goods they contribute to. By focusing on final goods, GDP provides a measure of the value of goods and services produced for final consumption in an economy.

for more such question on goods  visit

https://brainly.com/question/25262030

#SPJ8

Gain sharing is an employee benefit that provides

Answers

Gainsharing empowers employees to select how to improve their individual and collective performance. It also broadens employees' attention beyond their personal interests.

Gainsharing a contract that defines the vendor's commitment to the client in terms of particular business advantages. A contract of this type also specifies the payment the client will make based on the vendor's performance in delivering specified business advantages. A profit-sharing plan not only inspires employees to give their best effort, but it also instils in them a sense of accomplishment at work. This has secondary benefits such as fewer staff attrition and, as a result, less time and money spent on training new employees.

To learn more about employees, click here.

https://brainly.com/question/18633637

#SPJ1

Frank Barlowe is retiring soon, so he is concerned about his investments providing him with a steady income every year. He is aware that if interest rates , the potential earnings power of the cash flow from his investments will increase. In particular, he is concerned that a decline in interest rates might lead to annual income from his investments. What kind of risk is Frank most concerned about protecting against? Reinvestment rate risk Interest rate risk

Answers

Answer:

Increase

less

A) Reinvestment rate risk.

Explanation:

Reinvestment rate risk is demonstrated as the type of financial risk in which the investor is concerned about his investment getting canceled or stopped in the future and the other party/place might not be able to provide a similar rate of return.

In the given situation, Frank Barlowe is concerned about reinvestment risk. He is aware that he will earn a steady income from his investments as he knows that when the interest rates increase, his potential returns would increase and vice versa. But since he is retiring, he has a potential concern that if the investment gets abandoned somehow, he might not be able to reinvest his amount at the same rate and will not be able to continue with steady returns. Thus, option A is the correct answer.

A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist.
a) true
b) false

Answers

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the "consumer surplus". And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.

Select the correct answer.
In general, how long does it take to accomplish a long-term goal?
OA.
a few days to a week
OB.
a few weeks to a month
OC.
a few months to a year
OD.
more than a year

Select the correct answer.In general, how long does it take to accomplish a long-term goal?OA.a few days

Answers

C or d sorry if wrong

law of demand states that

Answers

The law of demand states that at a higher price consumers will demand a lower quantity of a good

Answer:

The higher the price the higher the quantity demand.

Explanation:

The law of demand states that the higher the price, the higher the quantity of goods and services demanded at a given period of time.

In a market for chemicals, the demand function is P = 200 - Q. The private marginal cost for the chemicals producers is MCP = 50+ Q. Pollution generated during the production process causes external marginal cost for the society equal to MCE = 3Q.
(a) What specific tax would result in a competitive market producing the socially optimal quantity of chemicals?
(b) Instead of taxation, what else can the government do to make sure that the market will work itself out to achieve the socially optimal output?

Answers

(a) To achieve the socially optimal quantity of chemicals in a competitive market, the tax should be equal to the external marginal cost imposed on society. In this case, the external marginal cost is MCE = 3Q. Therefore, the specific tax should be set equal to the external marginal cost:

Tax = MCE = 3Q

Substituting the demand function into the tax equation, we have:

Tax = 3(200 - Q)

Simplifying:

Tax = 600 - 3Q

This tax would align the private marginal cost (MCP) with the social marginal cost (MCE) and result in the market producing the socially optimal quantity of chemicals.

(b) Alternatively, the government can implement a cap-and-trade system or establish regulations to limit pollution emissions. In a cap-and-trade system, the government sets a limit (or cap) on the total amount of pollution allowed in the market. It then issues a corresponding number of pollution permits that companies can buy and sell. This system encourages companies to reduce their pollution emissions by creating a market incentive.

By implementing such measures, the government ensures that companies internalize the cost of pollution and take actions to reduce it. This helps the market work towards achieving the socially optimal output by incentivizing firms to reduce pollution and minimize the negative externalities associated with chemical production.

Learn more about external marginal cost and private marginal cost here:

brainly.com/question/28319559

#SPJ11

Why u think the porcentage of tax filers has most dramatically increased for the 65+ age group?

Answers

Answer:

The more people that retire, the more it increased.

Explanation:

Typically when people retire, they get their taxes filed. The percentage of the 65+ age group who have their taxes filed increases the more people who retire, then typically use tax filers.

Answer: The percentage of tax filers has most dramatically increased for the 65+ age group because

more people in the 65+ community are retiring and so, they are getting their taxes filed.

Good luck!

The means through which the message is sent from one communicator to
the other, such spoken words, a text message, or our hands to make a
gesture.

Answers

It is the receiver's reaction to the sender's message. Feedback occurs when the receiver sends a return message in response to the sender's communication. It aids the sender in determining whether the message was correctly interpreted by the receiver.

What is the message being sent in communication?

When the sender or person from whom the communication originates has a message, the communication process begins. The message is the information that is communicated. The message establishes a connection between the sender and the receiver.

The medium by which a message is transmitted from one communicator to another, such as spoken words, a text message, or our hands making a gesture. Feedback refers to the verbal and nonverbal communication sent by one communicator in response to the message sent by the other communicator (s).

Learn more about communication here:

https://brainly.com/question/12349431

#SPJ1

a company that has been in business for 10 years is a

Answers

Answer:

is still considered a startup after 10 year of existance

Explanation:

Great talkers are never great doers essay

Answers

Great talkers are never great doers means people who make loud and loud promises rarely keep their promises

Meaning -

There are many such talkative people who use lofty terms to show off their worth and blow their trumpets just to hide their inner weaknesses and vices. They are like empty ships that often ring. However, their vanity and selfishness often put them in a very low position when in times of crisis they display white feathers that are at odds with their lofty rhetoric. 

On the hand, someone who speaks little, believes in deeds, and knows his or her limits proves to be sincere enough to keep his promises. 

To know more about great talker and doers -

https://brainly.com/question/24927270

#SPJ1

You decide to attend college next fall. List 3 or more opportunity costs and 3 or more opportunity benefits of ading college next fall.​

Answers

Answer:

Explanation:

Opportunity Costs for going to college

1. Cost of college tuition

2. Loss of income for getting a job right away instead of going to college

3. Time spend at college could be used of something else such as a hobby

Benefits for going to College

1. Getting a job with a higher salary

2. More job opportunities being available (i.e. jobs that require you be attending college or already have college degree)

3. Life experience you may gain attending college (such as mentoring from professors, joining clubs, etc.)

a good member of a business social network community is expected to take which of the following actions?

Answers

a good member of a business social network community is expected to take assist others when asked.

A community is a group of people who share a common setting, set of rules, religion, set of beliefs, set of values, or set of traditions. Through communication platforms, communities can share a sense of place that is located in a particular geographical location or in virtual space. living together in a bigger community is a group of individuals who share a common trait or interest. a neighbourhood for the elderly. a group of people with similar interests, particularly those related to their professions, dispersed among a greater society. A community is just a collection of individuals who share a similar location or trait. Individuals who live in the same area, work at the same firm, or attend the same school together are the types of people we most frequently associate with the word "community."

learn more about community here

https://brainly.com/question/29891921

#SPJ4

Domain and Range Digital Escape! puzzle 3

Answers

A function/graph/relation's domain and range are defined as follows:

Domain: a collection of input values.Range: a collection of output values.

What are a function's domain and range?

The domain of a function is the set that contains all of the function/relation's potential input values; hence, it is made up of x values.

The range of a function is the set that contains all of the function/relation's potential output values; hence, it is made up of y values.

Because the problem is incomplete, the notions of domain and range are given and then applied to derive the domain and range.

Learn more about Domain:

https://brainly.com/question/30133157

#SPJ1

Full Question:

Although part of your question is missing, you might be referring to this full question:


Please define the terms

domain and range.

Suppose that nominal GDP increases to $30,000, and the GDP deflator increases to 105. What is real GDP? Round your answer to the nearest cent.

Answers

Nominal GDP / GDP deflator
$30,000/105
=$285.71

How might international cooperative space efforts and outsourcing certain tasks to private
contractors affect the decision making done at NASA?

Answers

On the plus side, international collaboration may pool the resources and knowledge of several nations, promoting increased productivity, lower prices, and improved innovation. Access to cutting-edge scientific research, a pooling of resources, and financial support from several nations can all be advantageous for NASA.

NASA science is concentrated on better understanding Earth through the Earth Observing System,[8] advancing heliophysics through the Science Mission Directorate's Heliophysics Research Program,

exploring bodies throughout the Solar System with knowledge cutting-edge robotic spacecraft like New Horizons and planetary rovers like Perseverance,

and researching astrophysics topics, such as the Big Bang, through the James Webb Space Telescope and the Great Observatories.

Learn more about NASA, from :

brainly.com/question/29890206

#SPJ1

In an agency relationship, one party called the principal agrees to represent or act for another called the agent. O True O False

Answers

The statement " In an agency relationship, one party called the principal agrees to represent or act for another called the agent." is false.

Give a brief account on agency relationship.

A connection in which one party appoints another to perform tasks on their behalf is known as an agency relationship. The relationship between a principle and an agent is referred to as an agency relationship when the principal grants the agent the authority to act on the principal's behalf. When someone engages a lawyer to handle legal work for them, this is a typical example of an agency relationship. In this case, the agent is able to fulfill the principal's needs thanks to a legal authorization.

There are numerous distinctive traits in agency relationships. These are a few of those qualities:

As a result of the relationship's fiduciary status, trust and confidence are its foundations. To be given the authority to act on behalf of the principal, the agent must have the principal's faith and confidence.Agency laws control the interaction. These rules make sure that each party fulfils their obligation and complies with their side of the contract. There is a legal connection.Consensual relationship exist. The relationship cannot exist without both parties' consent.

To know more about, agency relationship, visit :

https://brainly.com/question/13840999

#SPJ1

Prince Paper has budgeted the following amounts for its next fiscal year: Total fixed expenses $500,000 Selling price per unit $75 Variable expenses per unit $25 If Price Paper spends an additional $12,500 on advertising, sales volume should increase by 2,300 units. What effect will this have on operating income?

Answers

Answer:

Increase in Operating Income of $102,500.

Explanation:

Consider the incremental effects as follows

Sales (2,300 × $75)                              $172,500

Less Variable Costs ( 2,300 × $25)    ($57,500)

Contribution                                          $115,000

Less Fixed Costs                                  ($12,500)

Change in Operating Income             $102,500

Therefore,

The effect is an Increase in Operating Income of $102,500.

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company’s present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives:



Purchase alternative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $20,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:



Annual cost of servicing, taxes, and licensing $ 5,300
Repairs, first year $ 3,200
Repairs, second year $ 5,700
Repairs, third year $ 7,700


At the end of three years, the fleet could be sold for one-half of the original purchase price.



Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $72,000 per year (the first payment due at the end of Year 1). As part of this lease cost, the owner would provide all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $16,000 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the lease contract.



Riteway Ad Agency’s required rate of return is 16%.



Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. (Use the tables to get your discount factors. The linked tables are the same tables as the ones in your course packet. If you calculate discount factors using Excel or a financial calculator, your answer may be different enough due to rounding that the system will mark it wrong.)



Required:

1. What is the net present value of the cash flows associated with the purchase alternative?

2. What is the net present value of the cash flows associated with the lease alternative?

3. Which alternative should the company accept?



Answers

The lease option has a present value of $123,499. The purchase option has a present value of $123,499 using the total cost approach. Acceptance would be given to the lease option.

How does present value work?

The sum of discounted cash flows is the present value. It is the present value of a cash flow. A financial calculator would be used to figure out the present value.

Cash flow from the purchase alternatives: Cash flow in year 0 = $17,000 x 10 = $170,000 Cash flow in year 1 = $-3000 - $1500 = $-4500 Cash flow in year 2 = $3000 - $4000 = $7000 Cash flow in year 3 = $3000 - $6000 - ($170,000 / 2) = $-76,000 .

Cash flow from the lease alternative:

Cash flow in year 0 = $10,000

Cash flow in year 1 = $55,000

Cash flow in year 2 = $55,000

Cash flow in year 3 = $55,000-  $10,000 = $45,000

Discount rate = 18%

Present value = $123,499

To learn more about Present value  visit :

https://brainly.com/question/17322936

#SPJ1

FIVE
Your company’s Chief Finance Officer (CFO) recently read about the notion that adjusting the capital
structure can increase the market value of a firm drastically. The CFO liked this idea and has asked you
to do a preliminary study on this issue; he will entertain any proposal to increase the debt of the company
up to a maximum debt /equity (D/E) ratio of 30 percent.
Your company is currently very conservative with its leverage and has a D/E ratio of only 10 percent.
You estimate the beta of your stock to be 1.05, based on the last five’s data. The marginal tax rate is 30
percent. The long –term Treasury bond rate is 8 percent and market risk premium is 5 percent.
From an investment banker, you obtain the approximate relationship between the pre-tax cost of debt and
the D/E ratio as follows
% in x 125 100 75 50 25 0 -25
% in y -25 0 25 50 75 100 125
Page 6 of 6
In addition from the statement of changes in cash flows, you found that Earnings before Interest and Tax
to be Sh. 120 Million, depreciation to be Sh. 10.5 million, Capital Spending to be Sh. 15 million and the
net working capital is zero. The growth rate on future cash flows is estimated to be constant at 6 percent
p.a.
Required
(i) What is the total market value of the firm today when D/E is 10 percent
(ii) What D/E ratio would you advise the firm

Answers

1. The total market value of the firm today when D/E is 10 percent is 492.15 million. 2.  we would advise the firm to increase its D/E ratio to 30 percent to maximize its market value.

1. To calculate the total market value of the firm today, we can use the following formula:

Total Market Value = Equity Value + Debt Value

Equity Value = Earnings before Interest and Tax (EBIT) * (1 - Tax Rate) / Cost of Equity

Debt Value = Debt * Cost of Debt

Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium

Cost of Debt can be estimated using the relationship provided in the question. When D/E ratio is 10 percent, the cost of debt is 10 percent.

Plugging in the values, we get:

Equity Value = 120 * (1 - 0.3) / (0.08 + 1.05 * 0.05) = 430.63 million

Debt Value = 0.1 * 430.63 / (1 - 0.3) = 61.52 million

Total Market Value = 430.63 + 61.52 = 492.15 million

(ii) To advise the firm on the optimal D/E ratio, we can use the formula for the weighted average cost of capital (WACC):

WACC = Weight of Equity * Cost of Equity + Weight of Debt * Cost of Debt * (1 - Tax Rate)

To maximize the firm's market value, we need to find the D/E ratio that minimizes the WACC.

We can use the provided relationship between the pre-tax cost of debt and the D/E ratio to estimate the cost of debt for different D/E ratios. We can then calculate the WACC for each D/E ratio using the formula above.

Plotting the estimated cost of debt and WACC against the D/E ratio, we can see that the minimum WACC occurs at a D/E ratio of 30 percent.

for more such questions on market

https://brainly.com/question/25369230

#SPJ11

What is the numbers of units to be produced if the firm desires to make a profit of birr 10000 assuming the fixed cost, selling price per unit & variable cost per unit are birr 50000,birr 20 & birr 10 respectively?

Answers

6000 units is the number of units to be produced if the firm desires to make a profit of birr 10000  the fixed cost, selling price per unit & variable cost per unit are birr 50000,birr 20 & birr 10 respectively.

let's assume the units to be produced by X.

then sales (20X)= variable cast (10X) + fixed cost (50000) + profit (10000)

20X = 10X + 50000 + 10000

X = 6000 units.

In accounting and economics, 'constant costs', additionally called oblique costs or overhead fees, are business expenses that are not depending on the extent of products or offerings produced with the aid of the enterprise. They have a tendency to be habitual, such as hobby or rent being paid consistently per month. these charges also have a tendency to be capital prices.

fixed expenses are charges which are independent of volume. constant costs have a tendency to be prices that might be based totally on time in preference to the quantity produced or sold via your enterprise. Examples of constant prices are rent and rent expenses, salaries, software payments, coverage, and mortgage repayments. constant price is referred to as the price that doesn't check in a change with an increase or decrease in the number of goods produced via a company. The variable value is referred to as the kind of cost as a way to display versions as in keeping with the modifications in the stages of manufacturing. Nature of fee.

Learn more about fixed cost here: https://brainly.com/question/3636923

#SPJ1

Other Questions
Using a mix of transaction selling and consultative selling can be consistent with a sound multiple relationship strategy. O True O False Question 8 2 pts Which of the following firms is least likely being consistent with the marketing concept? O A firm focused on generating profitable sales over the long run. A firm focused on satisfying its customers better than the competition does. O A firm focused on marketing more than selling. A firm whose marketing managers work closely with the production function. O A firm whose top marketing executive is the sales manager. The random process x(t) is defined as A with prob. 1/2 - A with prob. 1/2 x(t) = { nT < t < (n + 1)T, \n 2 where the value of the function in an (nT, (n+1)T) interval is independent of the values in o The four tires of an automobile are inflated to a gauge pressure of 2.2 105 Pa. Each tire has an area of 0.022 m2 in contact with the ground. Determine the weight of the automobile. A green bottle holds 8 35 ounces of water. A bluebottle holds 8 67 ounces of water. Write an inequality that compares the fractions and explain which bottle holds more.PLEASE ANSWER THIS ASSSAAAPPP!! Problem 3 Your company has decided to purchase new desk chairs for its 30 employees after discovering they have a budget surplus. The table below gives both the unit price of a chair, as well as the minimum number of chairs that must be purchased to qualify for that price. A B D Unit price 500 450 300 425 Min. order 1 7 20 10 a. How can the company minimize the cost of buying everyone new chairs? b. If in addition to the unit cost per chair, each supplier applies a fixed shipping charge, fs, how the model change? A bowl of grapes has a total mass of 265g. The bowl has a mass of 121g. What is the mass of the grapes? Make questions out of these statements. Use est-ce que/qu' in items 1-5 andinversion in 6-10. (9 and 10 says IIs nhabitent pas Qubec and Oest le professeur dart Jen traveled from Boston to Cape Cod at 60mph. On her way back, there was a lot of traffic, so her return trip took 3 times as long. What was Jen's average speed?Please answer the nurse manager is planning to develop leadership skills in direct-care nurses. which activities would the nurse encourage the direct-care nurses to participate in to develop these skills? select all that apply. one, some, or all responses may be correct. A primary care physician is a medical doctor who usually performs routine check-ups and initial evaluations when a health concern arises.TrueB.False Why male education is better than female education when a 22.7 ml sample of a 0.432 m aqueous hydrofluoric acid solution is titrated with a 0.376 m aqueous sodium hydroxide solution, what is the ph after 39.1 ml of sodium hydroxide have been added? The earth travels one full rotation around the sun in approximately 365.25 days. How many minutes does it take for the earth to travel one full rotation around the sun? Show your work. Make sure to include units in your answer. If there are 4Hz, how many waves per second are there? Which of the following relations represents a function?a {(2, 3), (1,3), (3, 3) }c. {(1, 3), (2, 3), (1,4)}b. {(1,3), (2, 3), (2, 4) }d. {(2, 2), (2, 3), (2, 1) }Please select the best answer from the choices providedBD Is the question "to be or not to be" the most important question we can ask ourselves? cite evidence from the text, your personal experience, and other literature, art, or history in your answer i need help with the problem PLS help What is the absolute value of 24 Find the equation of straight line which passes through tge points A(5, 10) and B(-13, -14) Convert 20 mi/hour to feet per second (5280 feet = 1 mile)