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Ksivusya [100]
3 years ago
10

Using her beloved grandmother's recipe for fruit-filled empanadas, Marianna opens a drive-up kiosk specializing in these sweet t

reats. The concept is profitable and gains a lot of media attention. Marianna wants to open additional locations, but she doesn't have a lot of start-up capital. Which consolidation strategy for fragmented industries could she utilize?
Business
1 answer:
lawyer [7]3 years ago
8 0

Answer:

Franchising

Explanation:

Since Marianna wants to open additional locations, but she doesn't have a lot of start-up capital, the consolidation strategy for fragmented industries that she could utilize is franchising

Franchising is a business expansion model and marketing concept which can be adopted by an organization that does not have to put down additional capital for expansion.

The expanding firm (a franchisor) only needs to license its know-how, procedures, intellectual property, and the use of its business model, brand, and rights to sell its branded products and services to a franchisee.

The franchisee is the party to bring the capital for the expansion.

Much explains why most restaurants use this same strategy, e.g. KFC, Subway and McDonald's;

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gtnhenbr [62]

Answer:

C i think i dont really know tbh

8 0
3 years ago
Note that common work styles are listed toward the top, and less common work styles are listed toward the bottom.
AURORKA [14]

Answer:

leadership

dependability

analytical thinking

Initiative

Self control

Explanation: These are the common needed work styles by Nursery and Greenhouse managers currently.

3 0
2 years ago
Westbrook's Painting Co. plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannual
xeze [42]

Answer:

The component cost of debt used to calculate the WACC will change by <u>0.70%</u> if the new tax rate was adopted.

Explanation:

This can be calculated using the formula for calculating the component cost of debt used to calculate the WACC as follows:

CD = WD * PCD * (1 - t) ........................ (1)

Where;

CD = Component of cost of debt in WACC

WD = Weight of debt

PCD = Pretax cost of debt

t = tax rate

Note: Since information is provided for only the 20-year noncallable bond in the question, we assume that WD is 100% for simplicity purpose.

We can therefore proceed as follows:

<u>a. CD When tax rate is 25%</u>

Based on equation (1) and the assumption in the note, we have:

CD when t is 25% = Component of cost of debt in WACC = ?

WD = Weight of debt = 100%

PCD = Pretax cost of debt = 7%

t = tax rate = 25%

Substituting into equation (1), we have:

CD when t is 25% = 100% * 7% * (1 - 25%) = 5.25%

<u>b. CD When tax rate is 15%</u>

Based on equation (1) and the assumption in the note, we have:

CD when t is 15% = Component of cost of debt in WACC = ?

WD = Weight of debt = 100%

PCD = Pretax cost of debt = 7%

t = tax rate = 15%

Substituting into equation (1), we have:

CD when t is 15% = 100% * 7% * (1 - 15%) = 5.95%

c. the WACC change if the new tax rate was adopted

Change in WACC = CD when t is 15% - CD when t is 25% = 5.95% - 5.25% = 0.70%

Therefore, the component cost of debt used to calculate the WACC will change by <u>0.70%</u> if the new tax rate was adopted.

4 0
3 years ago
Performance of ________ activities would not be possible without ________ activities.
Ede4ka [16]
The correct answer is A.
6 0
3 years ago
Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.7× Return on assets (ROA) 5.0% Return on equity (
max2010maxim [7]

Answer:

Profit margin=3%

Debt-to-capital ratio: = 3.8%

Explanation:

Calculations for Profit margin % and Debt-to-capital ratio: %

Calculation for profit margin

Profit margin =.05/1.7

profit margin=0.03*100

profit margin=3%

Calculation for Debt-to-capital ratio using this formula

Debt-to-capital ratio= ROA * (1 / ROE)

Let plug in the formula

Debt-to-capital ratio = .05 * (1 / .013)

Debt-to-capital ratio = .05 *76.92

Debt-to-capital ratio= 3.8%

Therefore: Profit margin=3%

Debt-to-capital ratio = 3.8%

4 0
3 years ago
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