Answer:
a. 12%
b. 2% and 10%
Explanation:
a. The computation of the realized return is shown below:
= {(Ending share price - initial price) + Dividend} ÷ (Initial price) × 100
= {$1 + ($55 - $50)} ÷ $50
= 12%
b. The computation of the dividend yield and the capital gain is shown below:
Dividend yield
= (Dividend) ÷ (initial price) × 100
= $1 ÷ $50 × 100
= 2%
For capital gain yield:
= (Ending share price - initial price) ÷ (Initial price) × 100
= ($55 - $50) ÷ ($50) × 100
= $5 ÷ $50 × 100
= 10%
Answer:
d. strategic alliances are easy to manage.
Explanation:
International strategic alliance is when companies located in different countries come together to form an alliance with the aim of achieving a specific goal.
When companies come together to form an international strategic alliance, the companies involved still remain a separate legal entity.
One of the disadvantages of an international strategic alliance is that they are difficult to manage. One of the reasons why this is so is because of different organisational cultures. The companies forming an alliance might have different organisational cultures.
The advantages of an international strategic alliance includes:
a. Alliances facilitate the development of new capabilities.
b. It increases access to new competencies particularly those related to technology.
c. Companies can share risks and resources.
Answer:
Explanation:
NPV is today's value of expected cash flows - today's value of invested cash.
Therefore, we need to identify current worth of cash flows by doing this:
47000/(1+0.06) +57500/(1+0.06)^2 + 82500/(1+0.06)^3 = 44339.6+51174.8+69268.6 = 164783
To find NPV we subtract investment amount from 164783. So, 164783 - 124000 = 40783. This is an NPV of first project x1
Now, we do the same calculations for project x2:
93000/(1+0.06) +83000/(1+0.06)^2 +73000/(1+0.06)^3 = 87736+73870+61292= 222898
222898 - 208000(investments) = 14898
Now let's calculate profitability index:
PI = Present value of future cash flows/ initial investment
PI for project x1 = 164783/124000 = 1.33
PI for project x2 = 222898/208000 = 1.071
From our calculations of NPV and Profitability Index we can see that project x1 should be chosen because it has higher NPV and profitability index
Answer:
The answer is: B) the placebo effect
Explanation:
The placebo effect occurs when people experience a benefit after an inactive substance or treatment is administered to them. The Hawthorne Experiment led to a variation of the placebo effect which is called the Hawthorne Effect.
The Hawthorne Effect occurs when the study subjects respond to the mere attention paid to them by the study personnel. The study subjects react positively just because they are being part of an experiment.
In increase in prices makes less people want to buy
