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ddd [48]
3 years ago
6

If a firm retains the same product for domestic and foreign​ markets, the company is demonstrating which type of product​ strate

gy? A. Straight extension strategy B. Product invention strategy C. Strategic alliance D. Product adaption strategy E. Backward invention strategy
Business
1 answer:
goblinko [34]3 years ago
8 0

Answer:

A. Straight Extension Strategy

Explanation:

Straight Extension product strategy refers to maintaining the same quality, attributes and utility of products both in the domestic and the international market.

This strategy is usually followed for those products which are globally acclaimed and thus need for any alteration or promotion is undesirable as the market for such products has already been created.

As the word suggests, extension means extending the same product globally.

Hence, this is a case of A. straight extension strategy

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The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have different dividend policies
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Answer:

10.67%

Explanation:

Gecko Company

Gecko = Expected Earnings growth rate = 8% annually

As there are no Capital gains tax, thus after Tax returns = Pretax returns

= 8%

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=5(0.75)

= 3.75%

Assuming the pay out ratio = 100%

Gordon’s required pretax return = 8/ (1-.25)

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= 10.67%

At pretax return of 10.67% on Gordon the after tax returns on both the stocks are equal.

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Answer:

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7 0
3 years ago
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Consider a tax cut which affects not only consumer disposable​ income, but also afterminus−tax earnings from labor supplied to l
noname [10]
<span>in the long run we would expect this tax cut to </span>C.  increase the level of real GDP.
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3 years ago
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kap26 [50]

Answer:

8.30%

Explanation:

The weighted average cost of capital of the company is  computed using the WACC formula below:

WACC=(We*Ke)+(Wp*Kp)+(Wd*kd)

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Ke=cost of retained earnings which is a proxy for the cost of equity=11.50%

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3 years ago
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