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bezimeni [28]
3 years ago
10

​U.S. businesses are increasingly recognizing that international markets provide enormous opportunities for growth and profit. _

__________companies are entering international markets and quickly realizing as much as 70% of their sales outside the domestic market within two years.
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
5 0

Answer:

Born-global

Explanation:

When an organization's activities seek an opportunity of shifting global and globalize swiftly without introducing a long-term or internationalization period, it is a born-global company. A born-global company starts its business in many countries from its commencement. As the question suggests that the companies are entering international markets, and understanding that they are selling more products globally instead of domestically, therefore, this type of company is known as a born-global.

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How did lax security impact target's sales revenue and profit performance?
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4 years ago
If the exchange rate for Mexican pesos has changed from 10 pesos to 9 pesos per dollar, _____.
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Ray Stokes is raising capital for a new company called NO Balloons Inc. NO Balloons will manufacture and sell festive balloons.
Sergeeva-Olga [200]

Answer:

NO Balloons' WACC = 7%

Explanation:

WACC = Weighted average cost of capital

The weighted average cost of capital (WACC) refers to calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including <u>common stock</u>, <u>preferred stock</u>, <u>bonds</u>, and <u>any other long-term debt</u>, are included in a WACC calculation.

<u>Respective calculation of WACC:</u>

<u>Step 1: Calculate the value of equity:</u>

Number of shares = 12 million

Share price = $19.5 per share

Value of equity = 12 million shares * 19.5/share = $234 million  (A)

<u>Step 2: Calculate the value of debt: </u>

Bonds = 200,000

Value of debt = 200,000 bonds * 1000 face value/bond * 89% sale price = 178 million  (B)

<u>Step 3: Calculate the firm value:  </u>

Total firm value (A+B) = 234 + 178 = 412 million

<u>Step 4: Calculate the weight of equity: </u>

Dividing the value of equity to total firm value:

Weight of equity = 234 / 412 = 0.5680

<u>Step 5: Calculate the weight of debt: </u>

Dividing the value of debt to total firm value

Weight of debt = 178 / 412 = 0.4320

<u>Step 6: Calculation of WACC :</u>

WACC = weight of equity * cost of equity + weight of debt * cost of debt = 0.5680 * 9.275% + 0.4320 * 4% = 7%

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3 years ago
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