Acme Global is analyzing how it can take customers away from organizations in other industries and whether organizations in other industries could take its customers away. It is analyzing the ______ in the five forces model.
A. power of suppliers
B. threat of substitute products and services
C. potential new entrants
D. rivalry among competitors
B. threat of substitute products and services
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Readable Materials Inc., a manufacturer of coated freshet and coated ground-wood paper used in catalogs, magazines, and commercial printing applications, has three bond issues outstanding. The following table describes these issues:
In addition, the firm’s 100,000 preferred shares of stock pay $0.75 per share quarterly and currently have a market price of $30 per share and a book value of $20 per share. The flotation costs for debt, preferred, and common equity are 3%, 5%, and 7%, respectively. The current price per share of the firm’s 200,000 shares of common stock is $50, but they have book value of $30 per share. The firm expects an average common dividend growth rate of 3% indefinitely and a dividend yield of 12% for the next year. The firm’s beta coefficient is 1.5 and its marginal tax rate is 40%. If the current risk free rate and market risk premium are 3% and 7% respectively, answer the following:
a) What are the book and market value weights for each source of capital?
b) What are the component costs of capital (i.e., debt, preferred equity, retained earnings, and new common equity)? Use the weighted average of the bond market values to determine the cost of debt and the arithmetic average of the dividend discount model and CAPM model for the cost of retained earnings.
c) What is the weighted average cost of capital using both the market and book value weights?
Answer the following statement(s) true (T) or false (F)
6. The purpose of a design interview is to gain validation of a design concept. 7. After an interview, it is a good idea to write down additional observations and insights from body language and tone of voice. 8. The empathy map can spot contradictions and certain tensions which can spark a whole host of interesting insight. 9. In the peel-the-onion approach to interviewing, the interviewer begins with the core root of the problem, then explores solutions. 10. The ability to observe cannot be improved with techniques or practice.
A toaster is an example of flexible automation
Indicate whether the statement is true or false
The general rule in negligence is that a person is under a duty to all others at all times to exercise reasonable care for the safety of others
Indicate whether the statement is true or false