Answer:
True.
Explanation:
Danger of losing control, and the possibility of an inactive market and an attendant low stock price are potential disadvantages of going public.
Companies that seeks to sell its stock on different stock markets or other major public exchanges must meet and maintain numerous listing requirements. Failure to comply with these mandates on an ongoing basis could cause the stock to become delisted from the exchange. The chief purpose of these requirements is to increase market transparency in an effort to foster investor confidence.
Answer: $33.19 million
Explanation:
From the question, we are informed that the current market value of the assets of ABCD is $86.28 million and that the call option value on the firm's assets is $53.09 million.
The market value of the firm's debt will be the difference between the market value of assets and the call option value of the firm's assets. This will be:
= $86.28m - $53.09m
= $33.19 million
Answer: False
Explanation:
Being able to determine the effect on price would have to be circumstantial
Answer:
Accept Project A and reject Project B
Explanation:
See the images to get the answer.
Decision: Required rate of return = 16% = Cost of capital.
If Internal rate of return (IRR) > the cost of capital = Accept the project.
If Internal rate of return (IRR) < the cost of capital = Reject the project.
From the basis of the formula, we can accept the project A because the IRR of Project A (19%) is higher than the cost of capital (16%). On the other hand, we can reject the project B because the IRR of Project B (14%) is smaller than the cost of capital (14%).
Answer:
C. international strategy.
Explanation:
There are several business strategies been used different corporate to survive and grow in various business condition.
International strategy is one of the business strategies that involve the adaptation of foreign policies and selling goods and services at the International market with some local customization to the product. When a firm pursues an international strategy, the head office of the firm retains fairly tight control over marketing and product strategy. Each subsidiary of the company, which is spread all over the world has independent operations with the least interference from the parent company.
In the given case, Xerox had a monopoly on photocopier technologies as they are protected by strong patents, which is their international strategy.
