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Law Incorporation [45]
3 years ago
13

"Bardron, an information technology company in the country of Conimount, wanted to start its business in the country of Bertholt

. Hence, it bought Lecden Corp, a severely underperforming information technology company in the country of Bertholt. This scenario is an example of _____
asked Aug 22, 2017 in Business by Stigma
A) strategic alliance
B) direct foreign investment
C) direct export
D) joint venture"
Business
2 answers:
Natalija [7]3 years ago
4 0

Answer:

The correct answer is letter "B": direct foreign investment.

Explanation:

Direct foreign investment is an important part of global economic integration. Direct foreign investment is a type of cross-border investment, intending to create a lasting interest that a resident company based in one country could have in a company operating in another.

Various strategies such as building new facilities or plants overseas, creating cross-border mergers or acquisitions will achieve direct foreign investment.

pshichka [43]3 years ago
3 0

Answer:

c

Explanation:

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LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 perce
11111nata11111 [884]

Answer:

9.72%

Explanation:

Maturity = 34

Par-value = -1000

Coupon rate = 6%

Coupon PMT = -60

Value of bond = 1152

Semi-annual Yield = Rate(34, -60, 1162, -1000, 0, 0)

Semi-annual Yield = 5.00%

Annual Yield = 10%

Tax rate = 40%

After tax cost of debt = 10*(1-0.4)= 6%: Add: Flotation cost (5%) = 11%

Cost of preferred stock = Dividend/Price = 12/120 = 10%

Cost of equity = Risk free rate + Beta*Market risk premium

Cost of equity = 3.72 + 0.94*6

Cost of equity = 9.36%

Particulars  Value per    No of        Market   Weight  Cost of     Product

                    security    securities     value                    security

Bonds             1162       100000     116200000   0.15784   11          1.736213

P. stock           120        1000000  120000000  0.16299   10         1.62999

Equity              100        5000000 <u>500000000</u> <u>0.6792</u>   9.36       <u>6.35697</u>

                                                       736200000     1                         <u>9.72317</u>

So, the WACC of the firm is 9.72%

3 0
3 years ago
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The correct answer is Chief Emotional Officer.

Explanation:

By uniting the managerial with the emotional, one concept empowers the other, creates value, wealth; that wealth that serves the individual to solve the circumstances of the external world without being a slave or puppet of those realities, but develop the ability to create expectations, prepare, generate alerts, design strategies, there I will be a successful and a winner.

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