Acme Supply Co

question 35

Multiple Choice

Acme Supply Co.has a new project that will require the company to borrow $3,000,000.Acme has made an agreement with three lenders for the needed financing.First National Bank will give $1,500,000 and wants 10% interest on the loan.Lockup Bank will give $1,000,000 and wants 12% interest on the loan.Southern National Bank will give $500,000 and wants 13% interest on the loan.What is the weighted average cost of capital for this $3,000,000?

• A)10.55%
• B)11.17%
• C)11.66%
• D)12.16%

Insight into the processes and benefits of encouraging innovative thinking in an organization.

Recognize the importance of monitoring and controlling as part of the managerial process.

Understand the core responsibilities of a supervisor within an organization.

Recognize the importance of communication and information sharing for effective supervision.

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Definitions:

Purchasing Organization

An entity within a company responsible for acquiring goods and services needed for business operations.

Supply Management Trends

The emerging patterns and shifts in practices related to procuring, managing, and optimizing an organization's supply chain to enhance efficiency, reduce costs, and improve relationships with suppliers.

Online Auctions

A virtual auction process where goods or services are sold to the highest bidder through a website or online platform.

Key Suppliers

Critical vendors or providers whose goods or services are essential to a company's operations, often contributing significantly to the product or service output.