The practice of comparing the company's achievements against the best practices in the industry is known as ________.
A) segmentation
B) goal congruence
C) performance evaluation
D) benchmarking
D) benchmarking
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Which of the following best represents the strategic planning time frame that Jeff Bezos of Amazon prefers?
A. Six months or less B. One to two years C. Three to five years D. Five to seven years E. Ten to twenty years
When the smoothing constant (?) is set to 1, then exponential smoothing is equivalent to ______.
A. naive approach B. weighted moving average C. moving average D. factor rating method
_________________________ can rely on lower prices or special features appealing to a subset of the market and becoming a niche brand.
a. Mid-level brands b. Runner-up competitors c. All brands d. Category Leader
Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets$38,000,000Net plant, property, and equipment$101,000,000Total assets$139,000,000? Liabilities and Equity Accounts payable$10,000,000Accruals$9,000,000Current liabilities$19,000,000Long-term debt (40,000 bonds, $1,000 par value)$40,000,000Total liabilities$59,000,000Common stock (10,000,000 shares)$30,000,000Retained earnings$50,000,000Total shareholders' equity$80,000,000Total liabilities and shareholders' equity$139,000,000The stock is currently selling for $17.75 per
share, and its noncallable $3,319.97 par value, 20-year, 1.70% bonds with semiannual payments are selling for $881.00. The beta is 1.29, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 40%. Refer to Exhibit 10.1. What is the best estimate of the after-tax cost of debt? A. 5.62% B. 6.07% C. 6.39% D. 6.77% E. 7.11%