![]() You and your team have been tasked with jamming a specific radio signal at 720 kHz. Radio jamming is the intentional disruption or interference of radio communications by overwhelming the intended receivers of the signal with random noise. Determine EPS_Dept and EPS_tock at that sales level to help assess the riskiness of the two financing plans. On the basis of the analysis in parts a through c, and given that operating leverage is lower under the new setup, which plan is the riskiest, which has the highest expected EPS, and which would you recommend? Assume that there is a fairly high probability of sales falling as low as 250,000 units. At what unit sales level would EPS=0 under the three production/financing setups-that is, under the old plan, the new plan with debt financing, and the new plan with stock financing? d. At what unit sales level would WCC have the same EPS assuming it undertakes the investment and finances it with debt or with stock? c. What would be WCC’s EPS (1) under the old production process, (2) under the new process if it uses debt, and (3) under the new process if it uses common stock? b. WCC could raise the required capital by borrowing$7,200,000 at 10% or by selling 240,000 additional shares of common stock at $30 per share. Also, fixed operating costs would increase from$1,560,000 to $1,800,000. ![]() Sales would not increase, but variable costs per unit would decline by 20%. The company is considering investing $7,200,000 in new equipment. The dividend payout ratio is 70%, and WCC is in the 40% federal-plus-state tax bracket. There are 240,000 shares of common stock outstanding, and there is no preferred stock. WCC has$4,800,000 of debt outstanding at an interest rate of 8%. Variable production costs for the expected sales under present production methods are estimated at$10,200,000, and fixed production (operating) costs at present are $1,560,000. Wingler Communications Corporation (WCC) produces premium stereo headphones that sell for $28.80 per set, and this year’s sales are expected to be 450,000 units. True employee involvement is based on the expectation that people are competent to make decisions about their work every single day on the job.'ĭiscuss how the views contained in the case study could be applied in practice to a hospital. People who contribute ideas should be recognised and rewarded. Of course, money is important, but once workers have satisfied their essential needs from money, they look for other things from work − - − according to Susan Heathfield (), 'Most people want involvement in decisions that affect their work. Leadership − - − providing clear expectations, structure and appropriate rewards if these expectations are met. The opportunity for growth and development - education, career paths, team working To receive feedback and to understand how managers take decisions - good communications from management and some participation opportunities Some control of their work − - − job enrichment responsibility for a well-defined task, recognition for achievement ![]() I would not do it again if I was asked.'Ĭan you understand how demotivated these lecturers were? They had been misled about the degree to which the extra effort they put into attending these meetings would be responded to by the principal.Īccording to Bob Nelson, a reward and motivation guru, giving people what they want from work is quite easy − - − even though it depends on the type of work situation and on the individual person. We heard nothing back - no feedback, no thanks and no decisions made on our recommendations. ![]() We had many meetings, agreed and wrote a report and sent it to the principal. He told us that it was a very important committee, that we would receive recognition for our time and that our views would influence future decisions. 'I was asked by the principal of my university to help form a committee of ten lecturers to discuss holiday dates, student enrolment and ways to check on the quality of lectures.
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