Outline the benefits to practicing issues management.
What will be an ideal response?
Corporations are more likely to maintain a competitive advantage over rivals; corporate behaviour is more
likely to be consistent with societal expectations; and the corporation is less likely to make a serious social
or ethical mistake. Issues management enables the corporation to detect issues earlier and develop
appropriate responses much sooner, sometimes even when the issues are emerging. The corporation's
vulnerability is reduced and its credibility enhanced.
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Free-response items are the most time-consuming responses to tabulate and evaluate
Indicate whether the statement is true or false
According to the following information, what is the firm's optimal capital structure? Proportion Earnings Per Weighted Average Cost of Debt Share (EPS) of Capital (WACC) 30% $2.50 13.2% 40 3.80 12.7 50 4.75
12.4 60 5.25 12.8 A. 30% B. 40% C. 50% D. 60% E. To determine the optimal capital structure, the market value of the stock must be known.
The dangers of poor execution of supply chain processes include increased lead and cycle times, higher costs, and less-informed decision making
a. True b. False Indicate whether the statement is true or false
Ruby Corporation grants stock options to Iris on February 1, 2017. The options do not have a readily ascertainable value. The option price is $100, and the FMV of the Ruby stock is also $100 on the grant date. The option allows Iris to purchase 200 shares of Ruby stock. Iris exercises the option on August 1, 2018, when the stock's FMV is $150. Iris sells the stock on December 5, 2019 for $400. Determine the amount and character (i.e., ordinary, LTCG or STCG) of income recognized by Iris and the deduction allowed Ruby Corporation in 2017, 2018 and 2019 under the following assumptions:a.The stock option is an incentive stock option.b.The stock option is a nonqualified stock option.
What will be an ideal response?