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Which one of the following management considerations is usually addressed first in strategic planning?
Suggested Answer: A
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Choice 'a' is correct. 7.0 percent cost of funds from retained earnings.
The cost of retained earnings is equal to the rate of return required by the firm's common shareholders (or, in effect, the return 'lost' by them when the firm chooses to fund with retained earnings). While oftentimes this rate is somewhat subjective, we are given the facts to exactly answer the question in this case. The stock is currently selling for $100/share, and the dividend is given at $7/share.
$7 / $100 = 7%
Choices 'b', 'c', and 'd' are incorrect, per the above Explanation:/calculation.
32 comments · newest first
SK
Skye
11 months ago
Yeah, overall goals set the direction for everything else.
JU
Jules
11 months ago
Surprised that being an industry leader isn't the top priority!
SO
Son
12 months ago
Recent annual budgets are usually last on the list.
LU
Luther
12 months ago
I think organizational structure should come before that.
MI
Mira
12 months ago
Definitely overall goals first!
VI
Vicente
1 year ago
I feel like recent annual budgets might come into play later in the process, so I would probably go with A as well.
AN
Antonio
1 year ago
I’m a bit confused; I thought organizational structure was also a key consideration early on. Maybe it’s B?
LE
Leatha
1 year ago
I remember a practice question that emphasized the importance of setting goals before anything else, so I’m leaning towards A.
HE
Hershel
1 year ago
I think the overall goals of the firm are usually the first thing addressed in strategic planning, but I'm not completely sure.
MO
Mose
1 year ago
This is a good test of our understanding of cloud usage models. I think the key is to focus on the specific details provided, like the customer needing extra capacity to handle seasonal spikes. Based on that, I'd say the answer is "Data center extension."
AR
Art
1 year ago
Hmm, I'm a bit confused by the wording of the options. I'll need to read through them carefully to understand the differences.
KA
Karima
1 year ago
Hmm, the key seems to be restoring load balancing while maintaining session persistence. I'm leaning towards option A, but I'll double-check the details.
IL
Ilda
1 year ago
Okay, let's see here. I think the key steps are to save the workbook as a macro-enabled file and then reopen it. The message box and macro settings seem like they might be related, but I'm not totally sure. I'll need to double-check the details on those.
BR
Brice
1 year ago
This question seems straightforward - the key is to focus on improving fault isolation and troubleshooting time, which is option A.
CL
Clay
1 year ago
Haha, maybe they're testing our sense of humor. Annual budgets? That's like asking a chef to decide the restaurant's decor.
JU
Justine
1 year ago
C) Recent annual budgets.
ER
Erasmo
1 year ago
B) Organizational structure.
WI
Wilbert
1 year ago
A) Overall goals of the firm.
CO
Coleen
1 year ago
Recent annual budgets? Come on, that's just numbers, not the big picture. Obviously, it's about being an industry leader!
JE
Jeanice
1 year ago
D) Being an industry leader.
DA
Dana
1 year ago
B) Organizational structure.
ST
Stephanie
1 year ago
A) Overall goals of the firm.
RE
Refugia
1 year ago
D) Being an industry leader.
PI
Pilar
1 year ago
B) Organizational structure.
AS
Ashlyn
1 year ago
A) Overall goals of the firm.
CA
Carma
1 year ago
I'd say organizational structure is the key here. You need to understand your capabilities before setting goals.
AR
Ariel
1 year ago
Definitely the overall goals of the firm. You can't build a strategy without clear objectives in mind.
AZ
Azzie
1 year ago
Definitely the overall goals of the firm. You can't build a strategy without clear objectives in mind.
CH
Charolette
1 year ago
A) Overall goals of the firm.
AN
Annelle
1 year ago
But what about D) Being an industry leader? Shouldn't that be the priority?
RY
Ryan
2 years ago
I agree with Dolores. Setting the overall goals is crucial for strategic planning.
DO
Dolores
2 years ago
I think A) Overall goals of the firm is usually addressed first.