A because you invest money into the bank, and eventually the deposits add up to a lot of money.
Answer:
overrated
Explanation:
The expected vale of the stock is below their current market value.
This means the expected earnings and dividends of the company are going to decrease in the following months. Or that other stocks semes more profitable, making this stock price going down:
This may occurs because, the price earings of this stock (times the Earings per share pays the market price is greater than other stock. Investor will move from a stock with a P/E of 20 to another which P/E is % as their return in investment will be higher.
Answer:
e. Joint ventures are on the rise.
Explanation:
No external environment can be static as the the environment depends on so many factors, and it can never be controlled.
Corporate culture do not alone influence the success, of an organization, it again depends upon multiple factors.
Mergers are part of economy which goes on, the declining mergers might increase suddenly and then decline, it is again part of economy.
Companies only advertise when they are new or in loss or when they launch a new product with the highest exposure, else they do not focus, much once customers are aware of their products.
Joint ventures are on rise, that is because the companies find it easy to grow when they join hands.
Answer:
Difference = 2.36% (Option e)
Explanation:
Formula:
WACC = Re*(E/V) + Rd*(D/V)*(1-t)
<u>Data (In Million) Book Value Market Value
</u>
E = Equity $65.00 $225.00 ($22.50 x 10)
D = Debt $45.00 $50.00
V = Value = E + D $110.00 $275.00
Re = Equity Rate 14% 14%
Rd = Debt Rate 6% 6%
T = Tax Rate 40% 40%
WACC Book Value:
WACC = 14%*(65/110) + 6%*(45/110)*(1-0.40)
WACC = 8.27273% + 1.47273%
WACC = 9.75%
WACC Market Value:
WACC = 14%*(225/275) + 6%*(50/275)*(1-0.40)
WACC = 11.45455% + 0.65455
%
WACC = 12.11%
Difference = 12.11% - 9.75 = 2.36% (Option e)
