The weighted average cost of capital for a firm is the:
A) discount rate which the firm should apply to all of the projects it undertakes.
B) overall rate which the firm must earn on its existing assets to maintain the value of its stock.
C) rate the firm should expect to pay on its next bond issue.
D) maximum rate which the firm should require on any projects it undertakes.
E) rate of return that the firm's preferred stockholders should expect to earn over the long term.
B
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Typically, the value-claiming stage will precede the value-creation stage.
Answer the following statement true (T) or false (F)
Of the four acculturation scenarios introduced, which is when the acquired company gives up its cultural attributes but is unwilling to adopt those of the acquiring company, usually leading to a dissolution of the old organization?
a. Assimilation b. Integration c. Separation d. Deculturation
The management of hazardous waste is governed by the __________ as amended
a. Clean Air Act b. Clean Water Act c. Solid Waste Disposal Act d. Federal Superfund Law
Flex, Inc., which is headquartered in Hoboken, New Jersey, operates a chain of 125 shoe stores throughout the United States. Consider the costs that appear in the following table, many of which pertain to the company's sole operation in Pottersville, New Jersey:??Performance MeasureCostPottersville Segment Contribution MarginPottersville Controllable ProfitMarginPottersville Segment ProfitMarginFlexNetIncomePottersville property taxes????Sales commissions paid to Pottersville employees????Allocated corporate overhead to individual store sites????Wages of Pottersville hourly employees????Salary of Pottersville manager????Pottersville Cost of Goods Sold????Local advertising handled by Pottersville manager????Flex income tax
expense????Pottersville store maintenance costs????Specify store maintenance as a fixed costs. Adopt the following language. "Pottersville store maintenance costs as agreed upon in yearly maintenance contract negotiated by Pottersville manager."Required: Analyze each of the costs and determine whether the cost affects Pottersville segment contribution margin, controllable profit margin, and segment profit margin, and/or the net income of Flex, Inc. Place an "X" in the appropriate cell(s). What will be an ideal response?