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BMW AUDI Debt @ 5% $300,000 Debt @ 7% $700,000 Common Stock @ $3.50 per Share $700,000 Common Stock @ $3.00 Per Share $300,000

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BMW AUDI Debt @ 5% $300,000 Debt @ 7% $700,000 Common Stock @ $3.50 per Share $700,000 Common Stock @ $3.00 Per Share $300,000 TOTAL $1,000,000 Total $1,000,000 # Shares of Common Stock 200,000 100,000 Based on the information above: A. BMW is utilizing a conservative capital allocation method B. AUDI is using a conservative capital allocation method C.They are both conservative. D. Need more information. The chief marketing information officer (CMO) of an organization belongs to the category of: * Middle managers. First-line managers. Top managers. Board of trustees. Which of the following is true of value creation by businesses? * Businesses create value for customers through realized profits and losses. Businesses create value for employees by wages earned and job satisfaction. Businesses create value for competitors through the benefits of long-term business relationships. Businesses create value for suppliers by the citizenship they display 1 points Save Answer QUESTION 11 The Sharpe ratio for a security is the Oa. Slope of the Security Characteristic Line b. Slope of the Capital Allocation Line Oc. Slope of the Security Market Line d. Y-intercept of the Security Characteristic Line Oe. Y-intercept of the Capital Allocation Line Of. Y-Intercept of the Security Market Line You are an equity analyst and have computed the following figures for two cement companies. The first, CementCo, has NOPLAT of $1,550 million, and invested capital without goodwill of $15,000 million. The second, CementExports, has NOPLAT of $1,750 million, and invested capital without goodwill of $16,000 million. If the cost of capital for both firms is 10 percent, what is the ROIC for each company? Which company is creating value in this year? a.) ROIC is 10.3 percent for Cement CO and 10.9 percent for CementExports; both companies are creating value b.) ROIC is 9.1 percent for Cement CO and 10.9 percent for CementExports; both companies are creating value c.) ROIC is 9.1 percent for Cement CO and 10.9 percent for CementExports; only CementExports is creating value d.) ROIC is 10.3 percent for Cement CO and 10.9 percent for CementExports; neither of the companies are creating value e.) ROIC is 10.3 percent for Cement CO and 11.2 percent for CementExports; both companies are creating value

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