The Oval Bearing Corp manufactures ball bearings. Oval Bearing Corp is all equity financed and its shareholders require a return of 8%. Elliptical Bearing Inc is also a manufacturer of ball bearings
Elliptical has 30% debt in its capital structure (debt-to-equity is 0.4286), and its cost of debt is 4%. What is Elliptical's WACC? Assume that the tax rate is 0%.
A) 6.8%
B) 7.3%
C) 8.0%
D) 8.5%
E) 9.7%
C
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The ________ doctrine refers to a U.S. Supreme Court ruling that empowered the NLRB to classify bargaining issues into three categories of bargaining items: mandatory, permissive, and illegal.
Fill in the blank(s) with the appropriate word(s).
Focusing the ability can secure a competitive edge but also carries some risks that could be detrimental to the focused firm, such as
A. the likelihood that a focused company will become so cost inefficient it will achieve excessive profits. B. the potential for technological advances to favor only low-cost providers. C. the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes. D. the likelihood that a focused company will become so cost efficient it will achieve excessive profits. E. the potential for the niche to become so attractive it will not attract new competitors thereby providing excessive market segment profits.
The CRP system converts tentative planned shop orders into standard hours of load by ______.
A. assessing the levels of inventory of finished product, given the availability of raw materials B. multiplying each period’s production quantity requirements by standard labor or equipment requirements per unit, or both C. averaging the availability of resources per production hour D. basing the calculations on the production volume from the preceding production period
The textbook described mimicry, vicarious learning, scanning and grafting as ways to
a. Distribute knowledge b. Circulate knowledge c. Retain knowledge d. Acquire knowledge