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kiruha [24]
2 years ago
13

Nathan was worried that his company was missing a lot of opportunity to sell their products in China because of the separation c

reated by language, culture, and distance. In other words, his company had a lack of _____.
Business
1 answer:
lina2011 [118]2 years ago
4 0

The inability of Nathan's company to sell their products in China can be said to be: lack of knowledge.

<h3>What is Knowledge of a Market?</h3>

Understanding your market target for a specific product goes a long way in saving resource wastage and facilitates effective marketing strategy that gurantees sales.

Knowledge of the culture and language of a market is key to penetrating a market.

Thus, the inability of Nathan's company to sell their products in China can be said to be: lack of knowledge.

Learn more about knowledge of a market on:

brainly.com/question/2889076

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Answer:

$18,000

Explanation:

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Cost of Debt KatyDid Clothes has a $150 million (face value) 30-year bond issue selling for 104 percent of par that carries a co
Ivahew [28]

Answer:

the annual pre-tax cost of debt is 10.56%

Explanation:

the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.

We solve for the rate which makes the coupon and maturity 104

with excel or a financial calculator

PV of the coupon payment

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 5.500 (100 x 11%/2)

time 60 (30 years x 2 payment per year)

rate <em>0.052787474</em>

5.5 \times \frac{1-(1+0.0527874736258532)^{-60} }{0.0527874736258532} = PV\\

PV $99.4338

PV of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   100.00

time   60.00

rate  <em>0.052787474</em>

\frac{100}{(1 + 0.0527874736258532)^{60} } = PV  

PV   4.57

<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>

PV coupon $99.4338 + PV maturity  $4.5662 = $104.0000

The rate is generated using goal seek or wiht a financial calculator.

This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:

0.052787474 x 2 = 0.105574947

The cost of debt for the firm is 10.56%

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