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2 years ago

When a corporation purchases or builds a facility in a foreign country, it is called:_________

1 answer:

6 0

When a corporation purchases or builds a facility in a foreign country, it is called Foreign direct investments (FDI).

<h3>What is the purchase of one corporation by another called?</h3>

A corporation makes an acquisition when it buys the majority or all of the shares of another company in order to take over someone business. The acquirer can make choices on newly acquired assets without the consent of the target company's other shareholders if they purchase more than 50% of the target company's stock and other assets.

<h3>How are corporations bought and sold?</h3>

Another corporation may be owned by a corporation, and it may be acquired using the shares of the original corporation. There are two ways to purchase a company's business: through investing in the corporation that owns the business's shares (a share sale). The sellers in this situation are the company's shareholders, and they will sell the buyer their shares in the business.

To know more about shareholder visit :

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Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% i

Nuetrik [128]

Answer:

Stock's current market value = $44.87

Explanation:

We can solve this stock valuation problem using DDM (Dividend Discount Model).

Lets find the dividends for the years:

D0 = $1.32

D1 = $1.32*1.3 = $1.716

D2 = $1.716*1.1 = $1.888

D3 = $1.888*1.05 = $1.982

The formula of stock valuation:

$P_n=\frac{D_{n+1}}{k_e-g}$

Lets calculate the terminal value after Year 3 afterwards:

$P_n=\frac{D_{n+1}}{k_e-g}\\P_n=\frac{1.982}{0.09-0.05}\\P_n=49.55$

<u>Note:</u> rate of return, k_e = 0.09 (given) and growth rate (g) is 5% or 0.05

Now,

The present value of the stocks is gotten using formula:

$P_n=\frac{D_{n+1}}{(1+r)^n}+\frac{Terminal}{(1+r)^n}$

So, we have:

$P_0=\frac{1.716}{1.09}+\frac{1.888}{1.09^2}+\frac{49.55}{1.09^2}\\P_0=44.87$

Stock's current market value = $44.87

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3 years ago

1. Write about whether or not you believe productivity would go up, down, or stay the same in an enterprise where the workers ar

kolezko [41]

Answer:

Productivy would go up only as long as some of the workers can become competent managers.

Explanation:

The problem with worker ownership of the means of production (the firm), which is what socialism is about, is that workers do not necessarily have managerial skill, and as result, are likely to be unable to run the company efficiently.

In case this does not happen, and the workers manage to run the company well, GDP would increase because productivity in the firm would rise. Inflation would likely fall down because more productivity means more output of goods and services, and inflation tends to have a inverse relationship with output (although it also depends on other variables like the rate of growth of the money supply).

Finally, another macroeconomic variable that would positively affected is employment rate, because a more efficient company would likely require new workers.

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3 years ago

Which idea would be most effective for creating a "happy morning"? Pull clothes out of the dryer to wear 10 minutes before your

Kaylis [27]

We need answer choices

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4 years ago

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What is revolving credit? A. Credit when the borrower makes regular monthly payments B. Credit that requires payment in full on

valentinak56 [21]

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3 years ago

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Last year Swensen Corp. had sales of $303,225, operating costs of $267,500, and year-end assets of $195,000. The debt-to-total-a

kolbaska11 [484]

Answer:

The correct option is D

There is increase in ROE by 2.86%

d. 2.86%

EXPLANATION:

THIS IS THE COMPLETE QUESTION BELOW;

Last year Swensen Corp. had sales of $303,225, operating costs of $267,500, and year-end assets of $195,000. The debt-to-total-assets ratio was 27%, the interest rate on the debt was 8.2%, and the firm's tax rate was 37%. The new CFO wants to see how the ROE would have been affected if the firm had used a 45% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both remain constant. By how much would the ROE change in response to the change in the capital structure?

a. 2.08%

b. 2.32%

c. 2.57%

d. 2.86%

e. 3.14%

CHECK THE ATTACHMENT BELOW FOR DETAILED EXPLANATION

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3 years ago