Answer:
1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.
2- To enter a new market Joint-venture will be suitable because:
In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.
Explanation:
1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.
2- To enter a new market Joint-venture will be suitable because:
In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.
Answer: It is likely that BC Inc. is better enabled than GN Corp to gain and sustain a competitive advantage.
Explanation: Since BC Inc.'s intangible assets are valued at $45 billion more than GN corp, hence they are better enabled to gain and sustain competitive advantage.
Answer:
A good use of free cash flow is to Invest in nonoperating assets
Explanation:
Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.
If the underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.
A good use of FCF would be to invest in nonoperating assets such as marketable securities, investments in other companies, etc.)
Answer:
Preferred shareholder (7,500*$100)*7% $52,500
Common shareholder (70,000×$2) <u>$140,000</u>
Total dividend <u>$192,500</u>
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Date General Journal Debit Credit
10 June Dividend $192,500
To dividend payable $192,500
(To record dividends payable)
20 June No entry required
01 July Dividend payable $192,500
To cash $192,500
(To record dividend payment)
31 Dec Retained earning $192,500
To dividends $192,500
(To close dividend account)
Answer:
1.60 percent
Explanation:
exact real rate of return on this investment = interest rate - inflation rate
total revenue gotten by Christina = ( 500 × $ 64.25) + $ 738 = $ 32863
total money invested = 500 × $ 62.30 = $ 31150
her profit = $ 32863 - $ 31150 = $ 1713
interest = $ 1713 / $ 31150 = 0.054992 × 100 = 5.4992 %
exact interest rate = 5.4992 % - 3.9% = 1.5992 approx 1.60 percent
