<u>Solution and Explanation:</u>
The given ke = 0.08 , Ke = 8%
Now, the required return falls by half (by 50%)
Ke (revised) = 8 percent multiply with the 50 percent = 4%
The Price of Radvob’s stock = =$102
Do= $2
G=2%
The given Current price = $34
Ke= required return = ?
The Current price =
Ke=0.08 , Ke=8%
Now, the required return falls by half(by 5%)
Ke (revised) = 8 percent multiply with 50 percent = 4%
The strategies the companies are following in each case are;
1)Cost leadership strategy
2)Product differentiation strategy
3) Product differentiation strategy
4) Cost leadership strategy
<h3>What Is Cost Leadership Strategy? </h3>Cost leadership is known to be a kind of a business-level methods that is often used by people or by companies who are interested to gain a competitive advantage by acting as the lowest-cost producer of a product, service, production process, or others.
Therefore, The strategies the companies are following in each case are;
1)Cost leadership strategy
2)Product differentiation strategy
3) Product differentiation strategy
4) Cost leadership strategy
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