Answer:
required return on the company's stock = 11%
Value of each share =$88.51
Explanation:
The constant growth model states that
. If ke is made subject of formular,
.
This implies that ke= dividend yield plus growth rate = 6%+5%=11%. Therefore the required return on the company's stock = 11%
Values of each share =
.
where 
and P3= 
Value of each share =
= 88.51
Answer:
The correct option is A,both the selling and buying units have complete information about costs.
Explanation:
A negotiated transfer price is a price agreed between the selling and buying divisions having considered factors such the external purchase price,the opportunity costs of selling internally and externally ,whether or not there is surplus capacity and may more.
Negotiated transfer price is fairer to both divisions as opposed to a transfer price imposed by management which could result in low morale in the buying or selling division depending on whether the price was set too high or too low.
When a firm pursues a(n) localization strategy, it sells the same products or services in both domestic and foreign markets.
Multinationals choose from four basic international strategies: (1) international, (2) multinational, (3) global, and (4) transnational. These strategies differ between the two strains. 1) Focus on low cost and efficiency, and 2) Respond to local culture and needs.
A company can obtain its three main benefits by successfully deploying a foreign markets strategy: (1) increased market size, (2) economies of scale and learning, and (3) location advantages. I can. Greater market size is achieved by expanding beyond the company's home country.
Multinational Corporation chooses from their three basic international strategies: (1) multidomestic, (2) Global, and (3) Transnational. These strategies differ in their focus on achieving global efficiencies and addressing local needs.
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