Its achieve by preserving what is distinct about the company.
Strategic positioning is basically an effort made by an organization in order to distinguishes itself in a valuable way from its competitors and delivers value to clients in way different from others.
- According to Porter, he states that a "company's relative position within its industry matters for performance".
- A proper strategic positioning have a way of influencing how customers perceive a product in relation with other competitors product.
In conclusion, this type of positioning helps to achieve sustainable competitive advantage by preserving what is distinct about the company.
Learn more about Strategic positioning here
<em>brainly.com/question/8999192</em>
<span>A direct democracy, also known as a pure democracy. This is where each individual has a vote, and directly decides on the things that are up for decision. This differs from a representative democracy, where people elect representatives which vote for them.</span>
Answer:
The reward to risk ratio for stock Y is 7.22%
The reward to risk ratio for stock Z is 5.50%
Explanation:
First and foremost, it is very important to note that the reward-to-risk ratio of a stock is the risk premium paid by the stock divided by its asset Beta.
The risk premium is calculated as stock expected return minus risk free rate
The risk premium is denoted by (rm – rrf) in Capital Asset Pricing Model of Modgiliani and Miller
For stock Y risk premium is 18.2%-5.2%=13%
For stock Z risk premium is 9.6%-5.2%=4.40%
For stock Y reward to risk ratio=13%/1.8=7.22%
For stock Z reward to risk ratio=4.40%/0.8=5.50%
Hence stock Y has a higher reward to risk ratio
Answer:
$26.52.
Explanation:
We use the MM Proposition I formula as follows:
VL = VU + (Tc * D) ....................................................... (1)
Where;
VL = Value of a levered firm, i.e. X = ?
VU = Value of an unlevered firm, i.e. Y = $24
Tc = Tax rate = 21%
D = value of debt = $12
Note: The US 2020 corporate tax rate is used as the tax rate since no tax rate is given in the question.
Substituting the values into equation (1), we have:
VL = $24 + (21% * $12) = $24 + $2.52 = $26.52.
Therefore, According to MM Proposition I, the stock price for Firm X is closest to $26.52.
