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Scott Equipment Organization is investigating various combinations of short- and long-term debt in financing assets. Assume the organization has decided to employ $10 million in current assets and $15 million in fixed assets in its operations next year, and EBIT for next year is $8 million. The organization's income tax rate is 40%. Stockholders' equity will be used to finance $15 million of assets, with the remainder financed by short- and long-term debt. The organization is considering implementing one of the policies below. Current Assets: $10 million Fixed Assets: $15 million Total Assets : $25 million Stockholders' Equity: $15 million Total Amount of Assets to be financed by debt: $10 million Tax Rate: 40% Total EBIT: $8 million Aggressive Strategy Short Term Debt: $8 million, 6% interest rate Long Term Debt: $2 million, 8% interest rate Moderate Strategy Short Term Debt: $5 million, 5.5% interest rate Long Term Debt: $5 million,7.5% interest rate Conservative Strategy Short Term Debt: $3 million, 5.25% interest rate Long Term Debt: $7 million, 7.25% interest rate Determine the following for each policy: • Net Income • Expected rate of return on stockholders' equity (Net Income/Equity) • Net working capital position (Current Assets - Current Liabilities) • Current ratio (Current Assets/Current Liabilities) • Would you rate them low, medium, or high with respect to profitability? • Would you rate them low, medium, or high with respect to risk? • What is your recommendation to management? Why?
Your company's matrix organization isn't working; decisions are taking too long and it seems to you that instead of best solutions you're getting compromises. As CEO what would you
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How can you see the integration and the modern management theory integrated into your own personal and professional lives? Pick only one theory for there are hundreds
• Discuss the advantages and disadvantages of self-administered interviewing, face-to-face interviewing, and telephone interviewing. • What is necessary for the success of each
L. Houts Plastics is a large manufacturer of injection moulded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the informat
1. Develop an ld score for the current layout. What problems can you identify with the current layout? 2. Use trial and error to come up with a better layout that lowers the ld
Three ways in which the restaurant can engage in socially responsive activities in the commununity within which it operates
if you expand your existing company by opening a new divition in a foreign country, shouldthe new divistion be staffed by local personnel or by personnel imported from the parent o
6. What does employee empowerment mean in job design
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