MM’s Proposition I holds, minimizing the weighted average cost of capital (WACC) is the same as maximizing the_____: Multiple Choice A) book value of the firm. B) market value of the firm. C) liquidating value of the firm. D) profits of the firm
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If MM’s Proposition I holds, minimizing the weighted average cost of capital (WACC) is the same as maximizing the_____:
A) book value of the firm.
B) market value of the firm.
C) liquidating value of the firm.
D) profits of the firm.
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- Suppose you manufacture 10 million hard drives per year specifically for Dell laptop computers. If your average variable cost C=$20/unit, annualized cost of investment to build a hard drive factory I=$30 million, and market price (bailout market price in the event Dell does not buy) Pm=$22/unit, what is your company's RSI (relationship specific investment)?Recent controversies involved with naming rights is that a facility is tied to a corporate partner and if that company has a publicity program or been involved in a scandal, it can have negative impacts on the facility. True False The evaluation process that examines how accurate the budget was is called: Planning Budget Variance analysis Return on investments Average rate of return Benchmarking Marketing a facility is often examined in terms of positioning a product or service according to the four P's: Product, Position, Price, and Partnership True FalseDoes the scenario present an example of post-investment holdup? Your company took note of your progress toward your MBA, and when the director for customer services left the company, you were asked to take over as interim director. You were encouraged to apply for the full-time position once you got your MBA. You served for 13 months, at which time your company was acquired by another company and your position was abolished. If yes: What is the sunk, or straned, cost? What is the contract? Was the contract breached? What are the damages?
- A new manufacturer and distributor of ice cream is going to be launched. The newly appointed CEO is planning to launch 5 production lines, producing a limited range of high-volume products which are sold in family sized tubs to supermarkets. The raw materials and ingredients for the product are going to be bought from 5 different companies. Demand is analyzed and found out that it is going to be stable. Business case looks profitable and promising. Your report should make explicit any further assumptions you wish to make about the operation.The Discounted Cash Flow method is the one of best ways to assess the impact of a major investment in an alternative production lay out, as it includes a trade-off of risk and use of capital.TRUE OR FALSE.. If the company cannot sell its fixed assets for the meantime, it is better for the firm to continue the operations even if it is losing provided the total revenue can cover the total variable cost and partial of the fixed cost.
- The cost of capital is a company's cost for using their own money. Group of answer choices True FalseManagement of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. How much will the profit for AG Travel and Tour be?Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. Since AG Travel and Tour is not able to identify members of each group,what price should it charge for each product?
- Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. If AG Travel and Tour wants to charge a package price, what is the highestprice it can charge?Which of the FF. statements is correct. A. Even if a company has adopted the best technology possible, it will not be able to meet the target of minimizing the costs of production nor meet the target output if the workers inside the company do not value team work and the workers envy each other. B. the output produced by the company is limited by the available technology C. new technologies will be adopted in place of the old technologies if the new technologies can produce the output at a lower cost D. all are correct E. none is correctWhich of the ff statements are true about cost function a. It estimate the total cost of production given a specific budget b. It helps predict what the marginal cost would be to produce a product at different levels of output c. It allows management to evaluate how efficiently the production process was at the beginning of the operation period d. It helps manager understand the price behavior of the product A firm profit maximization point is where a. Total revenue Is greater than total cost b. Marginal revenue is equal to marginal cost c. Marginal revenue is greater than total cost d. Marginal cost is less than total cost