Answer: (B) The firm is using a regional approach to international expansion
Explanation:
The Skaredykat Inc., is one of the firm which is using a regional approach or strategy for the international expansion purpose beyond its actual home market.
A regional approach is one of the type of business strategy that helps in boost the performance of an organization and it is typically used in the global initiatives.
According to the given question, The firm is using the regional approach for the purpose of international expansion that also include its home country and by using the proper business planning and also strategies we can easily expanding the business into international level.
Therefore, Option (B) is correct answer.
Answer:
$13.19
Explanation:
Data given
Annual dividend = $1.48
Increase percentage annually = 2.5%
Discount rate percentage = 14%
The computation of price is shown below:-
Price = Dividend ÷ (Cost of equity - Growth rate)
= ($1.48 × 1.025) ÷ (0.14 - 0.025)
= $1.517 ÷ 0.115
= $13.19
Therefore for computing the price we simply applied the above formula.
Answer:
She needs $150,000 to fund this perpetuity.
Explanation:
In this question we need to find the present value of this perpetuity. Because this is a growing perpetuity we will need to use the formula of present value of a growing perpetuity.
PV of growing perpetuity = Payment/ R-G
The payment is the current payment the perpetuity will pay which is 6,000, R is the interest rate which is 10% and G is the growth rate of the perpetuity which is 6%. Now we will input these values in the formula in order to find the present value of the perpetuity.
6,000/0.1-0.06
=6,000/0.04
=150,000