Answer:
(D). Straddling
Explanation:
Straddling positioning involves placing a product or brand in two segments at the same time such that it is possible to reap benefits from both segments.
<em>By launching its luxury brand (Infinity), while remaining in other market segments, Nissan is practicing straddling positioning</em>.
Answer:
If your required return on KacieCo stock is 15 %, the most you would be willing to pay for the stock today if you plan to sell the stock in two years is $26.43
Explanation:
Accoring to the given data we have the following:
D1= $3
D2=$3.50
P2=$28
Ks=15%
Therefore, in order to calculate the most P0 you would be willing to pay for the stock today if you plan to sell the stock in two years, you would have to use the following formula:
P0 = PV of D1 + Pv of D2 + PV of P2
P0 = D1/(1+ks)^1 + D2/(1+Ks)^2 + P2/(1+Ks)^2
P0 = 3/(1+15%) + 3.5/(1+15%)^2 + 28/(1+15%)^2 = $26.43
Answer:
A credit to Appropriations,$12,900,000
Answer:
1. TIE ratio = EBIT / Interest expense
EBIT = [ (Annual sales x profit margin) / (1 - tax rate) ] + Amount of debt x interest rate
= [ ($2,880,000 x 3%) / (1 - 0.30) ] + $800,000 x 8%
= 187428.57143
= $187,428.57
TIE ratio = $187,428.57 / ($800,000 x 8%)
TIE ratio = $187,428.57 / $64,000
TIE ratio = 2.92857
TIE ratio = 2.93
2. ROIC = [ EBIT x (1 - tax rate) ] / (Amount of debt + common stock)
= [$187428.57 x (1 - 0.30) ] / ($800,000 + $600,000)
= 0.093714285
= 9.37%
