Answer:
a. What is the value today of Steinberg's debt and equity?
b. What is the value today of Dietrich's debt and equity?
c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?
- A. Disagree: a company's value is determined by by its operating income (EBIT), not by there capital structure (M&M theory).
Explanation:
economic expansion 80% chance, EBIT $3.5 million
economic recession 20% chance, EBIT $1.9 million
expected EBIT = (3.5 x 0.8) + (1.9 x 0.2) = $2.8 million + $0.38 million = $3.18 million
Steinberg's debt obligations $980,000 at the end of next year
Dietrich's debt obligations $2,000,000 at the end of next year
total company value = $3.18 million / (1 + 10%) = $2,890,909
Explanation:
A communication barrier is an obstruction which put off a message to be understood correctly by the receiver. Communication barrier prevents other person from fully understand the meaning conveyed in the message or the information, thoughts or ideas transferred to the other person. Following are the situations with the appropriate communication barriers in each situation.
1) First Situation
C) Lack of Assumptions.
2) Second Situation
A) Lack of Respect
3) Third Situation
B) Inadequate Feedback
Answer:
c. in which people are presented with ambiguous images
Explanation:
The Thematic Apperception Test, also known as TAT, involves showing subjects ambiguous pictures and asking them to come up with an explanation for what is happening in the scene.
The way the test works is that subjects decipher or describe ambiguous situations based on their own past experiences and motivations in the form stories. This could either be conscious or subconscious. Subject usually lowers his/her guard to the examiner while describing the story. At this point, much-valuable information about the subject is being divulged.
Answer:
D) prime rate plus 4 percent
Explanation:
<em>Zebra Productions</em> will now be qualified as a sub-prime customer as it has been slow making payments to its bank. This has made its credit rating and quality lower. The lower credit rated customers are charged <em>sub-prime lending </em>rates which is charging interest rates higher than the prime lending rate ( lower interest rate for good credit rating customers). This is due to the fact that the bank is taking <em>higher risk</em> on the borrower's account and thereby should get <em>higher return</em> for taking higher risk.
Thus, <em>option no. D) prime rate plus 4 percent </em>would be charged to Zebra Productions.
Answer:
d. the natural environment.
Explanation:
There are two business environment
The first one is microenvironment and the other one is the macro environment
The microenvironment refers to that environment that covers the business functions with respect to the general public, customers, competitors, employees, etc
While the macro environment refers to that environment that affects the business functions or its workings
It can be in various ways like
1. Political & legal
3. Social
4. Technological
5. Demographic
6. Economical
