Answer: price leadership
Explanation: Price leadership is a circumstance where one business, typically the dominant one in its market, sets prices that its rivals follow closely.
This business is typically the one with the minimum cost of production, thus being able to outperform the prices charged by any rival who tries to set their prices below the price range of the market leader.
Rivals could increase prices than the cost leader, but this would likely lead to lower share of the market unless rivals were able to distinguish their goods adequately.
Hence from the above we can conclude that the given case depicts price leadership strategy.
Answer:
14.58%
Explanation:
Return on Bond is the actual rate that is received by an investor on investment in bond.
As per given data
After Tax return = 10.50%
Tax Rate = 28%
Deduction of 28% withholding tax will be made on the return of the bond in that country where investment is made and investor will have return net of tax.
We can calculate the after tax return on the bond as follow
After tax return = Before tax return x ( 1 - Tax rate )
10.5% = Before tax return x ( 1 - 28% )
0.105 = Before tax return x ( 1 - 0.28 )
0.105 = Before tax return x 0.72
Before tax return = 0.105 / 0.72
Before tax return = 0.1458 = 14.58%
Answer: a. $1,000.0m
Explanation:
Even though the company's enterprise value has no growth, the equity investment of the sponsor will rise from $500.0m when purchased to $1,000.0m when the target for the value of the enterprise is sold for $1500.0m.
The debt was $1000m at year 0 while the remaining $500m was for equity. It should be noted that at the fifth year, equity will be $1,000.0m while the debt will be $500m.
