Answer:
A. Culture
Explanation:
Culture is very important and is reflective of how people communicate and etc. For example, the big business setting in China differs from America, so you would want to know how to be respectful of their culture. In China, when giving and receiving business cards, you have to accept it with two hands, not one hand. Failure to do so will cause you to look rude!
I hope this helps clear things up!
When it has a small population
Answer:
Cost of Equity =11.56%
Explanation:
The cost of equity can be determined using any of the following methods:
- The Dividend Valuation Model(DVM)
- Capital Asset Pricing Model (CAPM)
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.
According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
Price = D/Kp
D- Dividend payable
Kp- cost of preferred stock
The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
This CAPM is considered superior to DVM because it incorporates risk. Hence, we will use the CAPM
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 2.90%, Rm-Rf- 7.10% β- 1.22
E(r) = 2.90% + 1.22×(7.10)% = 11.562 %
Cost of Equity =11.56%
Answer: $16,707
Explanation:
Given the given discount rate of 6.2%, the minimum amount that we shall accept today is the Present Value of the annual cashflows,
PV = 
+ 
+ 
= $16,707
Answer:
goodwill = $195,000
Explanation:
goodwill = offered purchase price - fair value of assets - fair value of patents = $5,100,000 - $4,600,000 - $305,000 = $195,000
Customer loyalty is part of a company's goodwill, so it will not be included in this calculation. Goodwill is the difference between the acquisition price of a company and the fair value of its assets.
