According to Reich and Benbasat (1996), Effective Alignment Occurred in Organizations

question 19

Multiple Choice

According to Reich and Benbasat (1996) , effective alignment occurred in organizations that developed a climate of supporting

• A) the sharing of domain knowledge and common business practices.
• B) the sharing of domain knowledge.
• C) common business practices.
• D) information management innovation.
• E) common business practices and information management innovation.

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Definitions:

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its security holders to finance its assets, integrating different sources of finance weighted by their proportional usage.

Costs of Equity

The return that shareholders require for investing in a company's equity, effectively the cost to the company of raising equity capital.

After Tax Debt

The net cost of debt after accounting for the tax deductibility of interest expenses.

Portfolio Beta

Portfolio Beta measures the sensitivity of a portfolio's returns to the returns of the market as a whole, serving as an indicator of its risk relative to the market.