Using the weighted average cost of capital as the required rate of return for every project will
A) cause a firm to accept projects that were too risky.
B) cause a firm to reject projects that should have been accepted.
C) result in maximization of shareholder wealth.
D) A and B above
D
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LZT is a cell phone manufacturer that designs its phones based on customer input. Once a new model is launched, the company monitors customer feedback and uses negative reviews to improve the next model
LZT also handles customer queries at length, and customer service is considered to be the most important function in the company. Is LZT more likely to use a traditional or modern company organization?
Newton Building Supplies hopes to generate an extra $4 million in sales next year. A salesperson traditionally generates $800,000 in sales each year. Using ratio analysis, how many new salespeople should Newton hire?
A) 2 B) 5 C) 10 D) 20