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Ierofanga [76]
3 years ago
6

The nine-cell attractiveness-strength matrix provides clear, strong logic for Group of answer choices using both industry attrac

tiveness and business strength measurements in allocating resources and investment capital to a corporation's different businesses. measuring only business strength in allocating resources and investment capital to the different businesses. using both resource fit and product strength measurements in allocating resources and investment capital to its different businesses. concentrating resources in only those business units that are destined for squeezing out the maximum cash flows. concentrating resources to bolster unattractive and competitively weak performers in the corporate portfolio.
Business
1 answer:
aliina [53]3 years ago
8 0

Answer:

using both industry attractiveness and business strength measurements in allocating resources and investment capital to a corporation's different businesses.

Explanation:

A nine-cell matrix can be defined as a strategic framework that provides a systematic approach used multi-business corporations to set priority on their investments among the different business units. Thus, it offers strategic implications of an investment by evaluating business portfolios, which are mainly based on business strength and market attractiveness.

Furthermore, the nine-cell industry attractiveness competitive strength matrix is a strategic framework adopted by individuals or managers in order to assist them in deciding which businesses should have low, average, and high priorities in deploying corporate resources.

Hence, the nine-cell attractiveness-strength matrix provides clear, strong logic for using both industry (market) attractiveness and business strength measurements in allocating corporate resources and investment capital to the different businesses owned by a corporation.

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Current value of this newly issued option on Internet Enterprises= $25

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Risk free rate for 6 month or period 1= (1000-909.09)/909.09=10%

Risk free rate for 1 year= (1000-826.45)/826.45=21%

Hence, risk free rate for period 2= (1+21%)/(1+10%)-1=10%

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Downward price factor for a period(d)=(1-50%)^(1/2)=0.707

Probability of upward price= (R-d)/(u-d)=(1.1-0.707)/(1.414-0.707)=0.55

Probability of downward price= 1-0.55=0.45

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Downward price =100*0.707=70.7 with probability 45%

After period 2:

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Mid price will be = 141.4*0.707 or 70.7*1.414=100 with probability =2*45%*55%=49.5%

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Hence, expected payoff of the option=30.25%*(200-100)=$30.25

So, current value of the newly issued option= 30.25/(1+21%)=$25

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