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1 year ago

For starbucks, __________ is the main advantage of entering new markets like japan and china via a joint venture.

1 answer:

7 0

For Starbucks, gaining access to local market knowledge is the main advantage of entering new markets like Japan and China via a joint venture.

After concentrating solely on the North American market for a considerable amount of time, Starbucks decided to branch out internationally.

A joint venture in Japan was Starbucks' first international expansion outside of the United States and Canada. Sazaby, Inc., owners of upmarket retail and restaurant businesses, was contacted by Starbucks. The 50/50 agreement was reached after carefully weighing Starbucks' and Sazaby's shared values, cultures, and community-development objectives. On the board of directors of the recently established Starbucks Coffee Japan, the two businesses were equally represented. Starbucks Coffee Japan achieved profitability more than two years before schedule in the fiscal year 2000. Starbucks has also faced many problems while entering Chinese market mainly due to licensing.

Learn more about Starbucks international expansion here:

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XYZ Inc. has $10 million in excess cash, a market capitalization of $300 million and a market value of debt of $110 million. Its

AysviL [449]

Solution :

We know,

$\text{WACC}=\text{equity weightage } \times \text{equity cost} + \text{net debt weightage} \times \text{debt cost} \times (1 -\text{tax rate})$

Net debt = debt market value - excess cash

= 110 - 10

= 100 million dollar

$\text{net debt weightage}=\frac{\text{market value of net debt}}{\text{equity market value+ net debt market value}}$

$=\frac{100}{300+100}$

= 0.25

$\text{equity weightage}=\frac{\text{market value of equity}}{\text{equity market value+ net debt market value}}$

$=\frac{300}{300+100}$

= 0.75

Therefore, WACC = 0.75 x 12% + 0.25 x 5% x (1 - 31%)

= 0.75 x 12% + 0.25 x 5% x (1 - 0.31)

= 0.75 x 12% + 0.25 x 5% x 0.69

= 9% + 0.862%

= 9.862%

6 0

2 years ago

Preferred stock is called preferred because it usually has two preferences over common stock. These preferences relate to: A. Pa

coldgirl [10]

Answer:

D. Distribution of assets if the corporation is dissolved and payment of dividends.

Explanation:

Preferred stock is a form of shares that represents ownership in an organization and has major claims over common stocks on the organization's assets and earnings. When it comes to payments of dividends holders of preferred stock are placed and held high over holders of common stock. In general, preferred stock comes with special priorities that gives senior investor preferred status over common shareholders.

6 0

3 years ago

Economics studies choices that arise from one fact. What is that fact?

galina1969 [7]

Answer:

D) Our resources are unable to satisfy all our wants

Explanation:

Scarcity is the main starting point for all economic studies. It is simple, all resources are scarce, and humans always want more and that need exceeds all the available resources.

Even the largest corporations in the world or the richest people have limited resources, their limits may be extremely large, but nonetheless the limits exist, e.g. Apple has $210.6 billion in cash, but only that amount.

8 0

3 years ago

The price elasticity of demand for a good is likely to be elastic __________.

ludmilkaskok [199]

Answer:

The price elasticity of demand for a good is likely to be elastic :

A. the greater the proportion of budget share spent on the good.

B. the greater the number of close substitutes for the good.

C. the longer the available time during which consumers can adjust.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

Price is more elastic in the long run than in the short run because consumers have more time to search for suitable alternatives

The more close substitutes a good has, the more elastic its demand. This is because if price is increased, consumers can easily shift to the consumption of an alternative product

the greater the proportion of budget share spent on the good, the more elastic the demand for the good

6 0

3 years ago

On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $19.2 million cash to expand operations. The l

tensa zangetsu [6.8K]

Answer:

See explanation section

Explanation:

August 1, 2021 Cash Debit $19,200,000

Notes payable Credit $19,200,000

To record the cash borrow from FirstBanc Corporation for six months, 8% promissory notes.

December 31, 2021 Interest expense Debit $640,000

Interest payable Credit $640,000

To record the accrued interest expense for the year ended, December 31, 2021.

Calculation: $19,200,000 × 8% × (5 ÷ 12) = $1,536,000 × (5 ÷ 12) = $640,000

If Trico Technologies paid the notes during maturity,

February 1, 2022 Notes payable Debit $19,200,000

Interest expense Debit $128,000

Interest payable Debit $640,000

Cash Credit $19,968,000

Calculation: $19,200,000 × 8% × (6 ÷ 12) = $768,000. As the interest accrued during the previous year and payable this year, the amount $640,000 will be remained as $640,000. The remainder amount (768,000 - 640,000) = $128,000 will be counted as interest expense.

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3 years ago