Answer:
D) 12.9%
Explanation:
WACC formula;
WACC = wE*rE + wD*rD(1-tax)
whereby,
wE = weight of equity = 2/3 or 66.67%
rE = cost of equity = 16%
wD = weight of debt = 1/3 or 33.33%
rD = pretax cost of debt = 9%
WACC = (0.6667*0.16 ) + [0.3333*0.09(1-0.35) ]
= 0.1067 + 0.0195
= 0.1262 or 12.62%
Therefore, the after-tax WACC will be closest to 12.9%
Answer:
Explained below:
Explanation:
The following are the <u>disadvantages of a sole proprietorship:</u>-
1. In a sole proprietorship, there is no separation between business assets and personal assets.
2. When the owner dies, the business also ends as well unless the owner made a prudent estate plan which allowed the business to continue.
3. A sole proprietorship has no shareholders and cannot sell ownership in the company without changing its business structure. etc
Answer:
C. Letter C; demand exceeds supply, resulting in a shortage
Explanation:
I had put my answer as A on the test and got it wrong. But this is the correct answer C.
Answer:
The correct answer is b. It makes a company more susceptible to competitive inroads.
Explanation:
Market segmentation is essential to know how is the public that makes up the market in which we are. There are a number of advantages and disadvantages of market segmentation that you should keep in mind, before venturing into such a study for your company.
Errors when establishing the segment
The first and main disadvantage of including market segmentation techniques is the wrong selection of a segment.
Keep in mind that if the company chooses a wrong market fraction, too small or irrelevant for the company's business, then the business will find it difficult to market its product.
Commercial Saturation Issues
Another drawback derived from this strategy is to enter a market segment in which there is strong competition and saturation. When we are about to create a company or product we must take into account the development possibilities we have in that market.
Answer:
Global Marketing
Explanation:
Based on this scenario, it seems that Yum! Brands is currently in the Global Marketing stage. In this, they decide on the best way to market their product/services in such a way that will maximize their reach as well as their profits Globally. These decisions are made so that their marketing is efficient in various geographic locations without having to specifically target different marketing campaigns in each location. All of which is created and controlled from within the company's home market.
