Answer: return on equity
Explanation:
The return on equity is simply a measure of how profitable a business will be when it's being compared to its equity. Return on equity is the net income divided by the equity. It can also be gotten when liabilities is deducted from assets.
In the above analysis, return on equity equals 5% because 100 cents make 1 dollar. Therefore, 5/100 × 100 gives 5%.
Answer:
E. globalization
Explanation:
-Ethnocentrism refers to judging another culture based on your own culture and considering yours as superior.
-Availability of supplies refers to having access to the products needed for the business.
-Avoidance of tariffs and import quotas refers to not having limitations like paying taxes on imports or exports or having a maximum quantity of a product that can be imported or exported.
-Lower labor costs refers to low salaries.
-Globalization refers to a process of integration that involves people, governments and companies around the world. When talking about business is about developing an international presence and beginning to operate in other countries.
According to this, Dave Seminsky’s ability to open Sumarian Coffee in Shanghai can be attributed to globalization.
Answer:
a) Pre-tax cost of debt is 8.45%
b) After tax cost of debt is 5.07%
Explanation:
a) Given:
Debt issue outstanding = $15.5 million
Semi-annual coupon rate = 0.063 / 2 = 0.0315
Assumed par value (FV) = $1,000
Coupon payment (pmt) = 0.0315 × 1000 = $31.5
Current bond price (PV) = 92% of $1,000 = $920
Time period (nper) = 5 × 2 = 10 periods
Calculate semi-annual rate using spreadsheet function =Rate(nper,pmt,PV,FV)
Semi-annual rate = 4.14%
Pmt and FV are negative as they are cash outflows.
YTM = 4.14 × 2 = 8.28%
Effective annual rate = 
= 
= 0.0845 or 8.45%
b) Tax rate is 40%
After tax cost of debt = Pre tax cost of debt × (1 - 0.4)
= 0.0845 × 0.6
= 0.0507 or 5.07%
Answer:
Explanation:
Low involvement. The major reason for the advertisement is not so that there will be high involvement buyer, with information about the product (beer) to be produced deeply to form strong attitudes, but the advertisement is basically for entertainment and also so that good feeling can be associated about the advert and product (beer). In fact the major disadvantage about the use of humour in advert is that people can remember the advert and forget the brand or product been advertised.
