uop MGT/426 week 3 assignment uop MGT/426 week 3 assignment Question Week Three: Implementing a Change Details Due Points Objectives 1 1.1 Apply an appropriate change model to a specific situation. 1.2 Describe the ethical issues organizations face when implementing change. 1.3 Develop a communication plan for change. 9/26/2013 6:00pm Reading Read Ch. 7, 8, 10, & 11 of Managing Organizational Change. 9/26/2013 6:00pm Reading Read this week’s Electronic Reserve Readings. 9/26/2013 6:00pm Participation Participate in class discussion. 9/26/2013 10:00pm 4 Individual Exam Complete:Mid-Term Exam 9/26/2013 10:00pm 15 Leaning Team Managing Change Presentation Part II · Prepare a 7- to 10-slide Microsoft® PowerPoint®defining and explaining the importance of understanding shared vision and organizational culture in the context of change for your selected organization. · Examine modeling as a facilitator of change and explain the three models of change that were discussed for this week. · Add these sides to your previous learning team presentation creating a 14- to 20-slide Microsoft PowerPoint presentation. · Include speaker notes beneath each slide. 9/26/2013 6:00pm 10
general business data bank general business data bank Question 1. Marketers are always looking for emerging trends that suggest new marketing opportunities. One such trend is the “metrosexual.” Which of the following items would the metrosexual most likely have some interest for? a. An IBM computer. b. Tickets to WWF wrestling. c. Saxophone lessons. d. An all-over body spray by Axe. e. Cowboy boots made from elephant hide. 2. ________is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. a. Target marketing b. Psychographic segmentation c. Psychology d. Consumer behavior f. Product differentiation 3. The fundamental determinant of a person’s wants and behavior is the person’s ________. a. psyche b. national origin c. culture d. peer group e. family tree 4. A child growing up in the United States is exposed to all of the following values EXCEPT ________. a. achievement and success b. activity c. efficiency and practicality d. the importance of the group in daily life e. freedom 5. Which of the following would be the best illustration of a subculture? a. A religion. b. A group of close friends. c. Your university. d. A fraternity or sorority. e. Your occupation. 6. With respect to facts about the American consumer, which of the following consumer electronics is owned by the vast majority of consuming households with a 93 percent reporting ownership? A personal computer. TiVo DVR. A cellular phone. A microwave oven. A VCR. 7. ________ is defined as being relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior. a. Culture b. Subculture c. Social class d. The family e. A group 8. Social classes show distinct product and brand preferences in all the following areas EXCEPT ________. a. clothing b. home furnishings c. leisure activities d. automobiles e. fast food 9. A person’s ________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior. a. culture b. subculture c. psychographics d. reference groups e. demographics 10. A(n) ________ group is one whose values or behavior an individual rejects. a. aspirational b. disassociative c. membership d. primary e. procreational 11. If a direct mail marketer wished to direct promotional efforts toward the family of ________, efforts need to be directed toward parents and siblings of the family members. a. orientation b. procreation c. immediacy d. intimacy e. reference 12. Expected to account for a quarter of the U.S. population by 2050, ________ are the fastest growing minority. a. African Americans b. Asian Americans c. Hispanic Americans d. European Americans e. Arabic Americans 13. The dominant cohort, with respect to families, for the next fifty years may very well be the ________ cohort. a. married-couple household b. single adults c. single seniors d. married seniors e. married-couples with parents living with them 14. Husbands and wives display different decision-making roles in most families. The trend for dominant decision making in families is for ________ to be responsible for most of the decisions. a. the husband b. the wife c. joint decision making (both husband and wife) d. holistic decision making e. child-oriented decision making 15. The Disney Channel has become the company’s cash cow for its ability to reach the underserved ________ market—8- to 14-year-olds. a. teen b. twixt c. mid- d. tween e. young adult 16. People choose products that reflect and communicate their role and actual or desired ________ in society. a. group b. status c. attitudes d. beliefs e. feelings 17. Consumption may be shaped by ________ (such as marriage, childbirth, or divorce). a. the psychological life cycle b. the product life cycle c. the life/death life cycle d. post-puberty cycles e. critical life events or transitions 18. Product choice is greatly affected by economic circumstances. All of the following would be among those circumstances EXCEPT ________. a. spendable income b. savings and assets c. debts d. occupation e. borrowing power 19. ________ is a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. a. Image b. Personality c. Beliefs d. Heredity e. Culture 20. When the Marlboro Man was depicted in advertising as a rugged outdoor, tough cowboy type, this was done to establish what is called a ________. a. trademark b. brand name c. brand personality d. psychological approach to advertising e. brand reference 21. ________ portrays the “whole person” interacting with his or her environment. a. Attitude b. Reference group c. Lifestyle d. Culture e. Subculture 22. Consumers today are experiencing a time famine because of their busy lifestyles. One way to avoid the difficulties of time famine, which is of particular interest to marketers, is ________. a. to set fewer goals b. to multitask c. to give in to personal burdens d. to report frustration to management e. to develop a callous attitude toward marketers 23. With respect to understanding consumer behavior, there are four key psychological processes. All of the following would be among those processes EXCEPT ________. a. motivation b. perception c. learning d. self-reliance e. memory 24. A ________ when it is aroused to a sufficient level of intensity. a. need becomes a motive b. motive becomes a need c. desire becomes a reality d. unfulfilled demand becomes a crisis e. personal demand exceeds the ability to rationally reject 25. ________ assumed that the psychological forces shaping people’s behavior are largely unconscious, and that a person cannot fully understand his or her own motivations. a. Abraham Maslow b. Frederick Herzberg c. Sigmund Freud d. John Cacioppo e. Karl Marx 26. Frederick Herzberg developed a ________ that distinguishes dissatisfiers and satisfiers. a. trait-role theory b. psychological constraint theory c. probability scale d. leadership model e. two-factor theory 27. At the top of Maslow’s hierarchy of needs (shown as a pyramid in the text) are ________ needs. a. esteem b. self-actualization c. social d. safety e. physiological 28. It has been estimated that the average person is exposed to over ________ ads or brand communications a day. a. 1,500 b. 1,300 c. 1,000 d. 800 e. 500 29. ________ is the tendency to interpret information in a way that will fit our preconceptions. a. Selective retention b. Cognitive dissonance c. Selective distortion d. Subliminal perception e. Discrimination 30. A cigarette ad has a picture of a young man laying on his back and dreamily looking at clouds in the sky. Though not readily obvious to the casual reader, there is a message in the clouds that says “r-e-l-a-x.” This would be an example of which of the following? a. Selective distortion b. Cognitive dissonance c. Selective retention d. Subliminal perception e. Short-term memory
post university ECO 201 macroeconomics unit 2 assi post university ECO 201 macroeconomics unit 2 assi Question Answer Questions For Review #1 and #8 at the top of page 510Answer Questions For Review #1 in the middle of page 527Page 5101.)1] An economy's income is same at its expenditure because in every transaction there aretwo parties: the seller and a buyer. Every dollar of spending by a buyer is a dollar ofspending for a seller.2.)It is desirable for a country to have a large GDP because its the market value of all finalgoods and services produced in a country in a given period of time. You would want theGDP to be large so that the value of goods is higher. Countries with a large GDP allowsthe people of that country to live better lives.p.g. 5271)I think a 10 percent increase is the price of chicken has a greater effect on the consumerprice index because more people on a whole buy chicken than caviar.
Extreme conflict is related to chaos in the same way that Extreme conflict is related to chaos in the same way that Question 1. Extreme conflict is related to chaos in the same way that _____ is related to complacency. A. (Already tried this answer)B. lack of innovationC. weak competition D. lack of determination 2. In the dynamic sequence of interactions called a role episode, feedback relevant to the role-player is derived from the A. (Already tried this answer)B. perception of the role evaluator.C. nature of the perceived role.D. player's perception of the enacted role. 3. Recently, Bill has noticed that the members of the group he's in charge of have been going off in different directions. They seem to have lost sight of their purpose. Which one of the following steps should Bill take? A. Introduce role conflict.B. Bring in a nay-sayer. C. (Already tried this answer)D. Build group norms. 4. Bentley feels good about being a member of the A-Team work in the shipping department because Greg, Harvey and the others in the group are known throughout the company as conscientious, efficient, and dependable. In his relationship with this group, Bentley is focused on A. (Already tried this answer)B. affiliation.C. esteem.D. accomplishment. 5. Two people, Jeff and Mark, are competing to meet their sales quotas. Their competition is least likely to lead to conflict if A. neither man's efforts will obstruct the efforts of the other.B. the competition is intended to be friendly.C. no conflict between the parties ever existed prior to their competition.D. (Already tried this answer) 6. You want to follow the research of Sherif to reduce conflict between two work units. The two groups have come to resent and hate each other since members of both groups feel that the other group has unfair access to resources. In fact, this isn't the case, but you have to convince the workers that both are being fairly treated. To accomplish your goal, you'll probably succeed best by A. forcing the group to work toward common, overarching goals.B. (Already tried this answer) C. having the groups take their breaks in the same employee lounge.D. requiring liaisons from each group to meet and share positive information. 7. Bob is a secretary and his wife Beth is a heavy-equipment operator. When all other things are the same, who probably has the more stressful job? A. BobB. Beth C. (Already tried this answer)D. Both are very low in stress.
Evaluate 1.1 Short Paper Evaluate 1.1 Short Paper Question Evaluate 1.1Short Paper: Competitive Corporations Visti the following sites:Coca-ColaNestléThe companies highlighted in this section are two of the most recognizable global brands. To remain competitive, they must be able to compete on a global scale. Explore both sites.What is Coca-Cola's mission? How dedicated are they to competing globally? What are they doing to make it a reality?Where in Europe, Africa, and Asia does Nestlé have operations? How many factories do they have in Spain and Thailand? Why does Nestlé have multiple facilities in a single country?How well have these two companies performed financially? Does this relate to their global approach to business?
kaplan 550 unit 4 assignments kaplan 550 unit 4 assignments Question GB550: Financial ManagementThere are two Assignments due in Unit 4.Assignment 1 of 2:Complete Chapter 25 question, 25-1, p. 1005Complete Chapter 25 problem, 25-2, p. 1007Prepare this Assignment as a Word document. List each question, followed by your answer.Directions for Submitting Assignment 1Compose your Assignment in a MS Word document and save it as Username-GB550 Assignment 1-Unit#.doc (Example: TAllen- GB550 Assignment 1-Unit 4.doc). Submit your file by selecting the Unit 4: Assignment 1 Dropbox by the end of Unit 4.Assignment 2 of 2:Please complete all parts of spreadsheet problem 2-15 on page 89. It is recommended that you complete the problem using the Excel template located in Doc Sharing.Directions for Submitting Assignment 2Compose your Assignment in a MS Excel document and save it as Username-GB550 Assignment 2-Unit#.doc (Example: TAllen- GB550 Assignment 2-Unit 4.doc). Submit your file by selecting the Unit 4: Assignment 2 Dropbox by the end of Unit 4.Assignment 125-1) Define the following terms, using graphs or equations to illustrateyour answers wherever feasible: a) Portfolio; feasible set; efficient portfolio; efficient frontierb) Indifference curve; optimal portfolioc) Capital Asset Pricing Model (CAPM); Capital Market Line (CML)d) Characteristic line; beta coeffiecient, be) Arbitrage Pricing Theory (APT)25-2) An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free is 6%, the expected return on the first factor (r1) is 12%, and the expected return on the second factor (r2) is 8%. If bi1=0.7 and bi2-0.9, what is Crisp's required return?Assignment 2problem 2-15 on page 89 a. Using the financial statements shown below, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recent year. Lan & Chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) 2013 2012 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBIT $99,200 $94,500 Interest Expense 10,470 8,600 EBT $88,730 $85,900 Taxes (40%) 35,492 34,360 Net income $53,238 $51,540 Common dividends $43,300 $41,230 Addition to retained earnings $9,938 $10,310 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2013 2012 Cash and cash equivalents $47,250 $45,000 Short-term investments 3,800 3,600 Accounts Receivable 283,500 270,000 Inventories 141,750 135,000 Total current assets $476,300 $453,600 Net fixed assets 330,750 315,000 Total assets $807,050 $768,600 Liabilities and equity Accounts payable $94,500 $90,000 Accruals 47,250 45,000 Notes payable 26,262 9,000 Total current liabilities $168,012 $144,000 Long-term debt 94,500 90,000 Total liabilities $262,512 $234,000 Common stock 444,600 444,600 Retained Earnings 99,938 90,000 Total common equity $544,538 $534,600 Total liabilities and equity $807,050 $768,600 Key Input Data Tax rate 40% Net operating working capital 2013 NOWC = Operating current assets - Operating current liabilities 2013 NOWC = - 2013 NOWC = 2012 NOWC = Operating current assets - Operating current liabilities 2012 NOWC = - 2012 NOWC = Total net operating capital 2013 TOC = NOWC + Fixed assets 2013 TOC = + 2013 TOC = 2012 TOC = NOWC + Fixed assets 2012 TOC = + 2012 TOC = Investment in total net operating capital 2013 2012 2013 Inv. In TOC = TOC - TOC 2013 Inv. In TOC = - 2013 Inv. In TOC = Net operating profit after taxes 2013 NOPAT = EBIT x ( 1 - T ) 2013 NOPAT = x 2013 NOPAT = Free cash flow 2013 FCF = NOPAT - Net investment in operating capital 2013 FCF = - 2013 FCF = Return on invested capital 2013 ROIC = NOPAT / Total net operating capital 2013 ROIC = / 2013 ROIC = b. Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for the most recent year. Additional Input Data Stock price per share $65.00 # of shares (in thousands) 15,000 After-tax cost of capital 8.0% Market Value Added MVA = Stock price x # of shares - Total common equity MVA = x - MVA = - MVA = Economic Value Added EVA = NOPAT - (Operating Capital x After-tax cost of capital) EVA = - x EVA = - EVA = , Attachments (17.19 KB)
LASA 1: Assignment 2: The Leader as a Strategist Report LASA 1: Assignment 2: The Leader as a Strategist Report Question LASA 1: Assignment 2: The Leader as a Strategist ReportUsing the Internet, find an organization you would be interested in working for or that is of interest to you personally. You now become a newly appointed senior leader in that organization. As a new leader, you must prepare a report for the CEO that assesses the organization’s overall alignment between its vision, mission, values, and strategy. This report should consist of the following sections:An analysis of the strategic cascade of the organization. This includes assessing the organization’s strategy and market position. Use the framework implied in Michael Porter’s (1997) article “.” When describing the business strategy of your organization, consider the following questions:What is the target market (target customer)?What is your organization's value proposition (How does it deliver value that satisfies the targets wants and needs?)?How is your product or service positioned in the market (What specific features and attributes define the product/service and how is its value reflected in its pricing, distribution, marketing communications, etc.?)?How is your organization sustainably different from your competitors (What is the source of uniqueness and how sustainable is it from being diminished by competitors?)?Your assessment should also include a SWOT analysis (strengths, weaknesses, opportunities, and threats). A SWOT analysis is a strategy planning tool that examines both internal and external environment for factors and trends that should shape planning and operations over the next five years. Environmental factors internal to the company are classified as strengths (to be leveraged) or weaknesses (to be mitigated), while external factors are classified as either opportunities (to be pursued) or threats (to be monitored and responded to).Some primer questions for the SWOT analysis include the following:StrengthsWhat advantages does your organization have?What do you do better than anyone else?What unique or lowest-cost resources can you draw upon that others cannot?What do people in your market see as your strengths?What factors mean that you "get the sale"?What is your organization's unique selling proposition (USP)?WeaknessesWhat aspects of your product or service could you improve?What market segments or competitive areas should you avoid?What are people in your market likely to see as weaknesses?What factors can make you lose sales?OpportunitiesWhat good opportunities can you spot?What interesting trends are you aware of?Useful opportunities can come from such things as the following:Changes in technology and markets on both a broad and narrow scaleChanges in government policy related to your fieldChanges in social patterns, population profiles, lifestyle changes, and so onLocal eventsThreatsWhat obstacles do you face?What are your competitors doing?Are quality standards or specifications for your job, products, or services changing?Is changing technology threatening your position?Do you have bad debt or cash-flow problems?Could any of your weaknesses seriously threaten your business?A summary of the internal environment, including the organization’s values and the key elements of the organization architecture that influence worker behavior. Include the following characteristics when analyzing the internal environment:Structure: This includes the ways the organization assigns formal roles and responsibilities, decision-making authority, expertise and skills, and work tasks. Think of the organization chart and how its implied structure directs the decision making, resource allocation, and workflow of the organization. Is it consistent with the strategy?Systems: This comprises the information flows that coordinate activities between groups and across the organization structure while helping direct worker behavior, including performance management, financial management, operating, forecasting and planning, and other regulating mechanisms. How do these systems help align workers and their actions with the strategy?Culture: This consists of the unwritten rules and norms that govern worker behavior and help coordinate the activities across structural boundaries. Is the organization culture an enabler or impediment to the corporate strategy? What specific behaviors embedded in the culture support the strategy? What specific behaviors block the strategy?A synthesis of the information evaluating the ability of the organization to implement the strategy using Kouzes and Posner’s Five Practices (e.g., modeling the way) as a framework.Include answers to the following:Company CultureDescribe the values and culture of your organization.What are the values of your organization?How are they reflected in the behaviors you see at work?Employee BehaviorsDescribe the behaviors in your organization.Are these behaviors consistent with the business strategy?Where do they conflict with the strategy?What new behaviors are required to align with the strategy?LeadershipHow might you and other leaders create new behaviors to support the strategy?What specific actions would you implement to communicate, motivate, model the way, coach, inspire the vision, challenge the process, and encourage the heart? Your response to each part of the assignment should be approximately three pages.Write a 10–12-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc.
fin315 final exam fin315 final exam Question Question 1 Table 9.2 A firm has determined its optimal structure which is composed of the following sources and target market value proportions. Debt: The firm can sell a 15-year, $1,000 par value, 8 percent bond for $1,050. A flotation cost of 2 percent of the face value would be required in addition to the premium of $50. Common Stock: A firm's common stock is currently selling for $75 per share. The dividend expected to be paid at the end of the coming year is $5. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.10. It is expected that to sell, a new common stock issue must be underpriced $2 per share and the firm must pay $1 per share in flotation costs. Additionally, the firm has a marginal tax rate of 40 percent. The firm's cost of a new issue of common stock is ________. (See Table 9.2) Answer 10.2 percent 14.3 percent 16.7 percent 17.0 percent Table 9.2 A firm has determined its optimal structure which is composed of the following sources and target market value proportions. Debt: The firm can sell a 15-year, $1,000 par value, 8 percent bond for $1,050. A flotation cost of 2 percent of the face value would be required in addition to the premium of $50. Common Stock: A firm's common stock is currently selling for $75 per share. The dividend expected to be paid at the end of the coming year is $5. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.10. It is expected that to sell, a new common stock issue must be underpriced $2 per share and the firm must pay $1 per share in flotation costs. Additionally, the firm has a marginal tax rate of 40 percent. The firm's before-tax cost of debt is ________. (See Table 9.2) Answer 7.7 percent 10.6 percent 11.2 percent 12.7 percent Table 10.4 A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: The new financial analyst does not like the payback approach (Table 10.4) and determines that the firm's required rate of return is 15 percent. His recommendation would be to Answer accept projects A and B. accept project A and reject B. reject project A and accept B. reject both. What is the payback period for Tangshan Mining company's new project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3 and $1,800,000 in year 4? Answer 4.33 years 3.33 years 2.33 years None of these Should Tangshan Mining company accept a new project if its maximum payback is 3.25 years and its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3 and $1,800,000 in year 4? Answer Yes. No. It depends. None of these Which capital budgeting method is most useful for evaluating the following project? The project has an initial after tax cost of $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, -$2,900,000 in year 2, $2,700,000 in year 3 and $2,300,000 in year 4? Answer NPV IRR Payback Two of these A firm has common stock with a market price of $100 per share and an expected dividend of $5.61 per share at the end of the coming year. A new issue of stock is expected to be sold for $98, with $2 per share representing the underpricing necessary in the competitive capital market. Flotation costs are expected to total $1 per share. The dividends paid on the outstanding stock over the past five years are as follows: The cost of this new issue of common stock is Answer 5.8 percent. 7.7 percent. 10.8 percent. 12.8 percent. Evaluate the following projects using the payback method assuming a rule of 3 years for payback. Answer Project A can be accepted because the payback period is 2.5 years but Project B cannot be accepted because its payback period is longer than 3 years. Project B should be accepted because even thought the payback period is 2.5 years for project A and 3.001 project B, there is a $1,000,000 payoff in the 4th year in Project B. Project B should be accepted because you get more money paid back in the long run. Both projects can be accepted because the payback is less than 3 years. Question 9 Which of the following capital budgeting techniques ignores the time value of money? Answer Payback Net present value Internal rate of return Two of these Table 9.2 A firm has determined its optimal structure which is composed of the following sources and target market value proportions. Debt: The firm can sell a 15-year, $1,000 par value, 8 percent bond for $1,050. A flotation cost of 2 percent of the face value would be required in addition to the premium of $50. Common Stock: A firm's common stock is currently selling for $75 per share. The dividend expected to be paid at the end of the coming year is $5. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.10. It is expected that to sell, a new common stock issue must be underpriced $2 per share and the firm must pay $1 per share in flotation costs. Additionally, the firm has a marginal tax rate of 40 percent. Assuming the firm plans to pay out all of its earnings as dividends, the weighted average cost of capital is ________. (See Table 9.2) Answer 9.6 percent 10.9 percent 11.6 percent 12.1 percent Question 11 What is the NPV for the following project if its cost of capital is 15 percent and its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and $1,300,000 in year 4? Answer $1,700,000 $371,764 ($137,053) None of these A firm is evaluating two independent projects utilizing the internal rate of return technique. Project X has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has a initial investment of $120,000 and cash inflows at the end of each of the next four years of $40,000. The firm should Answer accept both if the cost of capital is at most 15 percent. accept only Z if the cost of capital is at most 15 percent. accept only X if the cost of capital is at most 15 percent. None of these Question 13 When the net present value is negative, the internal rate of return is ________ the cost of capital. Answer greater than greater than or equal to less than equal to There is sometimes a ranking problem among NPV and IRR when selecting among mutually exclusive investments. This ranking problem only occurs when Answer the NPV is greater than the crossover point. the NPV is less than the crossover point. the cost of capital is to the right of the crossover point. the cost of capital is to the left of the crossover point. Consider the following projects, X and Y where the firm can only choose one. Project X costs $600 and has cash flows of $400 in each of the next 2 years. Project B also costs $600, and generates cash flows of $500 and $275 for the next 2 years, respectively. Which investment should the firm choose if the cost of capital is 25 percent? Answer Project X Project Y Neither Not enough information to tell What is the IRR for the following project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and $1,300,000 in year 4? Answer 15.57% 0.00% 13.57% None of these able 9.1 A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions. Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of $40. Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share. Common Stock: A firm's common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced $1 per share in floatation costs. Additionally, the firm's marginal tax rate is 40 percent. The weighted average cost of capital up to the point when retained earnings are exhausted is ________. (See Table 9.1) Answer 7.5 percent 8.65 percent 10.4 percent 11.0 percent When evaluating projects using internal rate of return, Answer projects having lower early-year cash flows tend to be preferred at higher discount rates. projects having higher early-year cash flows tend to be preferred at higher discount rates. projects having higher early-year cash flows tend to be preferred at lower discount rates. the discount rate and magnitude of cash flows do not affect internal rate of return. Table 9.1 A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions. Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of $40. Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share. Common Stock: A firm's common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced $1 per share in floatation costs. Additionally, the firm's marginal tax rate is 40 percent. The firm's before-tax cost of debt is ________. (See Table 9.1) Answer 7.7 percent 10.6 percent 11.2 percent 12.7 percent able 9.1 A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions. Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of $40. Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share. Common Stock: A firm's common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced $1 per share in floatation costs. Additionally, the firm's marginal tax rate is 40 percent. The firm's cost of retained earnings is ________. (See Table 9.1) Answer 10.2 percent 13.9 percent 12.4 percent 13.6 percent