A set of performance measures called ____ are directly related to the capital budgeting techniques used in corporate finance
a. Dividend discount model
b. Aggressive growth indexes
c. Growth indexes
d. Value added
e. Profit sensitization
D
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The common goals element of the definition of leadership means ______.
A. leaders and followers have a mutual purpose B. leaders and followers have similar personalities C. leaders and followers have similar interests D. leaders and followers have a mutual desire for power
The total fixed overhead variance is comprised of the
a. variable overhead efficiency and fixed variances. b. fixed overhead budget and volume variances. c. labor efficiency and rate variances. d. variable overhead spending and efficiency variances.
How does process capability analysis differ from the use of statistical process control charts?
What will be an ideal response?
Your firm's debt ratio is only 5.00%, but the new CFO thinks that more debt should be employed. She wants to sell bonds and use the proceeds to buy back and retire common shares so the percentage of common equity in the capital structure (wc) = 1 - wd. Other things held constant, and based on the data below, if the firm increases the percentage of debt in its capital structure (wd) to 60.0%, by how much would the ROE change, i.e., what is ROENew - ROEOld? Do not round your intermediate calculations. Operating Data Other Data Capital$150,000 Old wd5%ROIC = EBIT (1 - T)/Capital20.00% Old interest rate10%Tax rate35% New wd60% New interest rate12%?
A. 14.95% B. 19.17% C. 17.59% D. 21.64% E. 14.42%