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GarryVolchara [31]
3 years ago
5

Multinat is a large corporate with its headquarters in Asia. It wants to open new divisions in Africa and Australia. The company

wants to ensure that the new divisions follow the same policies, processes and guidelines as the parent company. It is evident from the scenario above that Multinat wants to:
A. incorporate local adaptation
B. form strategic alliances
C. establish global consistency
D. create franchises
Business
1 answer:
lozanna [386]3 years ago
4 0

Answer:

The correct answer is C. establish global consistency .

Explanation:

Consistency refers to the way the company globalizes all its practices, policies, regulations, procedures, etc., in order to achieve a unification in terms of cultural appropriation of employees and in the execution of business practices. This practice ensures synchrony at all levels, since the best way to carry out the processes and implement changes if required is known.

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A firm has a capital structure with $7 in equity and $1 of debt. The cost of equity capital is 0.16 and the pretax cost of debt
nlexa [21]

Answer:

0.147 or 14.7%

Explanation:

Equity (E) =$7

Debt (D) = $1

Cost of equity capital (Ce) = 0.16

Pretax cost of debt (Cd) = 0.08

Tax rate (r) = 0.3

The weighted average cost of capital of the firm is given by the following relationship:

WACC=\frac{E}{E+D}*C_e +\frac{D}{E+D}*C_d*(1-r)\\WACC = \frac{7}{7+1}*0.16 +\frac{1}{7+1}*0.08*(1-0.3)\\WACC= 0.14+0.007\\WACC =0.147 = 14.7\%

The weighted average cost of capital of the firm is 0.147 or 14.7%.

5 0
3 years ago
New balance has many offerings. it makes the minimus line of shoes with a vibram outsole and revlite cushioning for those who wa
Colt1911 [192]
<span>The strategy of appealing to different types of customers in this way is an example of product definition.
</span><span>The product definition includes product concept, design requirements and specifications, features, target market.
</span>First the company must understand the customer<span> needs and then it should convert this understanding into technical requirements for a new </span>product<span>.</span>
8 0
3 years ago
Read 2 more answers
The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred n
gizmo_the_mogwai [7]
Blockbuster is your answer
3 0
3 years ago
In January, 2020, Harmony Inc. has the following expenditures related to manufacturing a new generation of widgets. Match each e
Ivan

Answer:

Harmony Inc.

Expenditure                                          Appropriate accounting treatment

a. Machinery $550,000                       B. Capitalize to the Machine  

b. Machinery $33,000                          B. Capitalize to the Machine

Research and development $95,000 D. Expense.

c. Freight-in (Machinery) $4,250         B. Capitalize to the Machine

d. Installation, etc (Machinery) $16,500 B. Capitalize to the Machine

e. Prepaid Insurance $3,000               A. Capitalize to a different asset account.  

Explanation:

1) Data and Analysis:

a. Machinery $550,000 Accounts payable $550,000

b. Machinery $33,000 Sales Tax Expense $33,000

Research and development $95,000 Cash $95,000

c. Freight-in (Machinery) $4,250 Accounts payable $4,250

d. Installation (Machinery) $16,500 Cash $16,500

e. Prepaid Insurance $3,000 Cash $3,000

b) The correct approach in capitalizing fixed assets and related costs is to follow this procedure: capitalize freight, sales tax, transportation, and installation, in addition to the fixed asset purchase cost.

7 0
2 years ago
If real economic growth is 3%, the inflation rate is 5%, and the nominal interest rate is 7%, then the real rate of interest is:
Elanso [62]

Based on the information given  the real rate of interest is:2%.

<h3>Real rate of interest</h3>

Using this formula

Real rate of interest=Nominal interest rate-Inflation rate-

Where:

Inflation rate=5%

Nominal interest rate=7%

Let plug in the formula

Real rate of interest=7%-5%

Real rate of interest=2%

Inconclusion the real rate of interest is:2%.

Learn more about real rate of interest here:brainly.com/question/25877453

3 0
2 years ago
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