Wal-Mart Provides P&G Access to Sales Information on Every Item

question 129

True/False

Wal-Mart provides P&G access to sales information on every item Wal-Mart buys from P&G. The information is collected by P&G on a daily basis from every Wal-Mart store, and P&G uses the information to manage the inventory replenishment for Wal-Mart. This is an example of enterprise use of intranets.

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Definitions:

Capital Component

One of three sources of capital: debt, preferred stock, or equity.

Required By Investors

Refers to the expectations or conditions that investors demand before committing capital to an investment.

Capital Structure

The combination of borrowing and ownership investments utilized by a company to finance its activities and expansion.

WACC

A method known as the Weighted Average Cost of Capital (WACC) is used to calculate a corporation's cost of capital, with every capital category assigned a proportional weight.