Answer: (B) The firm is using a regional approach to international expansion
Explanation:
The Skaredykat Inc., is one of the firm which is using a regional approach or strategy for the international expansion purpose beyond its actual home market.
A regional approach is one of the type of business strategy that helps in boost the performance of an organization and it is typically used in the global initiatives.
According to the given question, The firm is using the regional approach for the purpose of international expansion that also include its home country and by using the proper business planning and also strategies we can easily expanding the business into international level.
Therefore, Option (B) is correct answer.
These workers are called contingent workers
Contingent workers are the type of workers that hired per-project basis. This make up Freelancers, consultants, or contractors.
Since technically these workers are not a part of the company, the company is not require to give benefit to them like its full-time workers.
Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
