Horton automatics and the industrial division of the communications workers of america—the union that represented horton's worke
rs—negotiated a collective bargaining agreement. if an employee's discharge for a workplace-rule violation was submitted to arbitration, the agreement limited the arbitrator to determining whether the rule was reasonable and whether the employee had violated it. when horton discharged its employee, ruben de la garza, the union appealed to arbitration. the arbitrator found that de la garza had violated a reasonable safety rule, but "was not totally convinced" that horton should have treated the violation more seriously than other rule violations. the arbitrator ordered de la garza reinstated to his job. can a court set aside this order from the arbitrator?
Based on the scenario, an arbitration happens in the court
order if both parties has an agreement to a dispute and based on the scenario,
the arbitration occurred because of the reason that both parties have an
agreement in which is the collective bargaining agreement. The court will
likely set the arbitrator’s award due to the following reasons, if the award
had violated public policy, the arbitrator’s conduct prejudice the rights of
the other party and if the arbitrator has exceeded his or her powers and if the
arbitrator decided to do any of this, it is likely that the court will set
aside the arbitrator’s award.
Explanation: In simple words, it refers to the strategy in which the management tries to set the goals and objectives of the firm and allocate its resources effectively on different uses. It is done for long term purposes.
In the given case, Kia is allocating the resources and setting organisation activities for next five years.
Hence we can conclude that Kia is involved in company's strategic planning.
In this case, we need to calculate cost of equity. The cost of debt has been given, which is the interest rate on long-term borrowing (10%). Since the debt proportion in the capital structure is 35% and equity proportion is 65%, it implies that the value of the firm is 100%. Then, WACC is the aggregate of cost of each stock and the proportion of each stock in the capital structure.