Six Sigma processes
A. consists of a disciplined, statistics-based system aimed at producing not more than 10 defects per million iterations for a manufacturing or assembly process.
B. can be used for improving products or business processes but not for developing new products or new processes.
C. can be used for both improving existing business processes and for developing new processes or products.
D. are based on three principles: (1) all work is a statistically controllable process; (2) no well-controlled process allows variability; and (3) defect-free work requires tight statistical controls.
E. can be used for developing new products or new business processes but not for improving existing products or business processes.
Answer: C
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Managerial accounting information for a company is primarily used by ________.
A) its customers to understand the pricing of the product B) its creditors to understand the credibility of the business C) its employees to plan, direct and control operations D) its investors to make their investment decisions
One aspect of network structure that determines power in a network is ________, determined by the number of connections into and through a node, by the total number of transactions that pass through a node, or by the degree to which the node is integral to managing a certain information flow.
What will be an ideal response?
The total assets turnover ratio indicates
a. the sales generated from each dollar of assets. b. the portion of the sales dollar left over for the common shareholders after covering all operating costs and subtracting claims of creditors and preferred shareholders. c. the portion of the sales dollar left over for the preferred shareholders after covering all operating costs and subtracting claims of creditors and common shareholders. d. the proportion of total assets, or total financing, provided by common shareholders contrasted with the financing provided by creditors and preferred shareholders. e. the proportion of total assets, or total financing, provided by preferred shareholders contrasted with the financing provided by creditors and common shareholders.
Treadless Tires Inc is currently all equity financed. It used to be leveraged, but it recently issued 20,000 new shares at $25 per share. The proceeds from the new issue were used to repay all of its debt
Financial details for the current and old capital structures are presented in the table below. Assume that Treadless generates perpetual annual EBIT at a constant level. Assume that all cash flows occur at the end of the year and we are currently at the beginning of a year. Assume that taxes are zero. Assume that all of net income is paid out as a dividend. Assume that the debt is perpetual with annual coupons at 4%. Assume that individual investors can borrow and lend at the same interest rate (and with the same terms) as corporations. Ron Platt is a shareholder in Treadless who owns 5,000 shares. After the new issue, Ron is unhappy with his dividends. How many shares does Ron have to buy (or sell) in order to return his annual cash flows to the level he enjoyed when the company was leveraged? Capital Structure Capital Structure Old (Levered) Current (All-Equity) EBIT $125,000 $125,000 Debt, D $500,000 $0 Cost of Debt, kd 4% N/A Shares Outstanding 30,000 50,000 Stock Price $25.00 $25.00 Dividends per share $3.50 $2.50 A) Buy 3,333 shares B) Sell 3,333 shares C) Buy 4,000 shares D) Sell 4,000 shares E) Do nothing. The investment cash flows are identical under each capital structure.