Formalization consists of the official and defined structures and systems related to decision making, communication, and control in the organization.
Managers perform formalization to make sure these processes are put in writing to help processes, relationships and operation run smoothly.
Answer:
The right answer to this question is to choose higher-risk projects over low-risk projects.
Explanation:
Jenner is a multi-division company that uses its overall WACC as a discount rate for all proposed projects. Every division is in a different line of business, every of which poses risks specific to those divisions.
WACC lowered the overall expense of the various sources of finance by using the mechanics involved in calculating the costs of these sources of fluidity. Organizations use the hybrid structure that costs the customer to the organization to save the source of funding in WACC.
Answer:
The answer is: They provide economies of scale in advertising.
Explanation:
A product line includes various products that a company offers under a single brand name. For example, Adidas has several product lines, including footwear, accessories, and apparel.
An advantage of having product lines is that the company can achieve economies of scale due to lower cost structures. These economies of scale may also benefit the company in advertising and promoting its products.
For example, the company can have a single promotion campaign, and advertise its various products that form one product line as part of that campaign. Hence, this eliminates the need for running multiple campaigns for the different products, resulting in cost savings for the company.
The market price of a security is $50. Its expected rate of return is 14%, and the market price of the security is mathematically given as
MR=27.368
<h3>What will be the market price of the security if its correlation coefficient with the market portfolio doubles?</h3>
Generally, the equation for expected rate return is mathematically given as
RR=(Rf+beta*(Rm-Rf)
Therefore
RR=(Rf+beta*(Rm-Rf)
Beta= (13-7)/8
Beta=0.75
In conclusion, the market price of a security
MR=DPs/RR
Where
Po=DPS/RR'
DPS=40*0.13
DPS=$5.23
and
RR=&+1.5*8
RR=19%
Hence
MR=$5.23/0.19
MR=27.368
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Answer:
Calculate the dirty price.
Here, coupon interest is compounded semiannually. Hence, divide coupon rate by 2.
Dirty Price = Bond Clean Price + Accrued Interest
Dirty Price = Bond Clean Price +(Face Value X Coupon Rate/2 X Day Count/ Total Days
Dirty price = 1026 + (1000 x 6.6%/2 x 74/183)
Dirty price = $1,039.34