Answer:
Using the discount cash flow model to value the company, we can say that the company is worth $85 million / 12% = $708.33 million
Each stock should be worth approximately $708.33 million / 100 million = $7.0833 per stock
If the company uses the cash to finance new projects, then future cash flows should be approximately $97.75 million, and the company's value = $97.75 million / 12% = $814.583 million. This represents a 15% increase in value. The stock price should also increase by 15% to $8.1458 per stock.
If the company instead decides to repurchase stocks using all the cash, then it could repurchase 35.29 million stocks. Since we are assuming that the company's future cash flows wouldn't be affected by this decision, then the company's total value will still be $708.33 million, but each stock would be worth much more = $708.33 / 64.71 million stocks = $10.95. This represents a 34.36% increase with respect to the other alternative of investing the cash.
The issue here, is that this situation is not very realistic. It is not normal for a company to use all of its cash to repurchase stocks since it would result in a huge increase in stock prices (stock prices are set by supply and demand). Also, this would also result in a sharp increase in the cost of equity due to higher risks.
Answer:
D. The gold coins are a commodity money because even though they were issued by a foreign government, the gold has intrinsic value
Explanation:
Commodity money is money that has intrinsic value. Its value can be derived from the material from which it is made. E.g. gold, salt, silver
Fiat money is money that has no intrinsic value but the government establishes it as money.
I hope my answer helps you
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Discuss failures of individuals of the company
b) Establish performance standards as a group
c) Measure, evaluate and take corrective action
d) Correct employees' actions by berating and celebrating
e) Cross-train employees
And the correct answer is the option C: measure, evaluate and take corrective action.
Explanation:
To begin with, when it comes to terms of control regarding the inside structure of an organization, the managers use different processes and techniques to take on that job of controlling the employes of the company in order to see how everything is going. In the case of Chris Zane, as he wants to do a control every week, then he is absolutely interesting in evaluating and measuring the improvements of every one inside the business so in that way he can take action in time to correct something if it is not going as planned. And that is the main reason why he would use a controlling process where he needs to have everything going as planned.
Answer:
a. 10,000 units
Explanation:
The computations of units completed are shown below:
= Beginning work in process units + units started - closing work in process units
= 3,000 units + 11,000 units - 4,000 units
= 10,000 units
For this question, we ignored the equivalent units as the question has asked about the completed units only
So, all other information is irrelevant
Answer:
C. Cultural and organizational changes
Explanation:
The many northern american companies required to make the cultural and organization changes prior to the approaches i.e. lean that implemented successfully as if we bring the changes like cultural and organizational one so it would become very challenging task
Therefore as per the given situation the option c is correct
And, the rest of the options are wrong
