The limitations of financial performance measures ________
A) lead management to use a time horizon of more than five years
B) make it difficult for companies to create goal congruence
C) lead management to use the gross book value of assets
D) can be overcome by taking a broader view of performance
D
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Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders' required return, rs, is 14.00%; and the firm's tax rate is 40%. The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs?
A. 2.48% B. 2.25% C. 2.36% D. 2.95% E. 1.77%
The ________ is the conceptual principal amount that controls the cash flows of an interest ate swap
A) synthetic principal B) notional principal C) nominal principal D) discounted principal
Creating a data model from a packaged data model requires much more skill than creating one from scratch
Indicate whether the statement is true or false
The term _____ refers to the set of performance criteria and products and processes an organization intends to develop or manufacture
a. concurrent engineering b. early supplier involvement c. process loss d. technology roadmap e. R&D plan