Messages denying customer claims should clearly blame the customer to avoid company liability
Indicate whether the statement is true or false
False
You might also like to view...
Under the Revised Act, Brafford, a director who is a member of the board that declares an illegal dividend, may be but is not under all circumstances personally liable to the company for the amount that is illegal even if she personally voted for the distribution contrary to the company's charter
a. True b. False Indicate whether the statement is true or false
Parents who cosign a contract with a minor have the same option to disaffirm.
Answer the following statement true (T) or false (F)
What four common mistakes in estimating the WACC should Jana avoid?
To help you structure the task, Leigh Jones has asked you to answer the following questions. During the last few years, Jana Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion program that has been proposed by the marketing department. Assume that you are an assistant to Leigh Jones, the financial vice-president. Your first task is to estimate Jana’s cost of capital. Jones has provided you with the following data, which she believes may be relevant to your task: 1. The firm's tax rate is 40%. 2. The current price of Jana’s 12% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,153.72. Jana does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. 3. The current price of the firm’s 10%, $100 par value, quarterly dividend, perpetual preferred stock is $116.95. Jana would incur flotation costs equal to 5% of the proceeds on a new issue. 4. Jana’s common stock is currently selling at $50 per share. Its last dividend (D0) was $3.12, and dividends are expected to grow at a constant rate of 5.8% in the foreseeable future. Jana’s beta is 1.2; the yield on T-bonds is 5.6%; and the market risk premium is estimated to be 6%. For the over-own-bond-yield-plus-judgmental-risk-premium approach, the firm uses a 3.2%judgmental risk premium. 5. Jana’s target capital structure is 30% long-term debt, 10% preferred stock, and 60% common equity.
Identify and discuss the general ways in which companies can increase their profitability and profit growth through global expansion