Answer:
E. centralized authority.
Explanation:
Centralized authority is a type of structure in which organizational management structure where most of the major decision-making power and authority rests in the hands of a concentrated group of leaders.
Answer:
intensity of rivalry
Explanation:
You answer this question based on Porter's Five forces model. This model is used to analyze how stiff competition is in a given industry. It includes, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, intensity of rivalry and threat of substitute goods. In this case, the leaders must address the intensity of rivalry because the market is already saturated with those three big companies. Therefore, your company must evaluate level of homogeneity of products that already exists, consumers' switching costs and brand loyalty to come up with a competitive strategy.
Answer:
Net income will decrease by $400,000
Explanation:
Currently this business unit is generating a net loss of $150,000:
total revenue - variable expenses - fixed costs = $700,000 - $300,000 - $550,000 = -$150,000
if the unit is eliminated, then the revenue and variable expenses will be gone, but the fixed costs will be allocated to other business units. So instead of losing $150,000, the company will lose $550,000. The company's net income will decrease by $550,000 - $150,000 = $400,000
Explanation:
The computations are as follows
a. Profit margin
= Net Income available to common stockholders ÷ Net Sales
= $5.2 Million ÷ $14.5 Million
= 35.86%
b. Gross profit margin
= Gross Profit ÷ Net Sales
= $9.90 Million ÷ $14.5 Million
= 68.28%
c. Operating profit margin
= EBIT ÷ Net Sales
= $7.60 Million ÷ $14.5 Million
= 52.41%
d. Basic earning power
= EBIT ÷ Total Assets
= $7.6 Million ÷ $54.5 Million
= 13.94%
e. Return on assets
= Net Income available to common stockholders ÷ Total Assets
= $5.2 Million ÷ $54.5 Million
= 9.54%
Answer:
After tax cost of debt is 6.82%
Explanation:
Currently the yield to maturity is the pre-tax cost of debt for Hype company, however the after tax cost of debt considers that the bonds are tax deductible , its actual is less than the pre-tax cost of debt , hence the after-tax cost of debt is shown below
After tax cost of debt=yield to maturity *(1-tax)
after tax cost of debt=11%*(1-0.38)
after tax cost of debt=11%*0.62
after tax cost of debt =6.82%
This confirms that cost of debt is usually lower than cost of equity , where shareholders would want an extra premium to compensate them for the increased risk taken by investing in the business.
