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IRISSAK [1]
3 years ago
14

Sam visits Mexico for a business meeting. At the meeting, Sam addresses the vice president of the firm by his first name rather

than using his title. This is considered offensive. In the context of Hofstede's cultural dimensions, this difference in cultures is part of the _____ dimension.
A. power distance
B. uncertainty avoidance
C. long-term–short-term orientation
D.masculinity-femininity
E. individualism-collectivism
Business
1 answer:
Nesterboy [21]3 years ago
8 0

Answer:

A. power distance

Explanation:

In the context of Hofstede's cultural dimensions, this difference in cultures is part of the power distance dimension, which corresponds to the hierarchical position of the members of an organization and the appropriate relationship form for each hierarchy in an organization that occurs in certain cultures, reinforced by an inequality that already occurs in society.

To avoid offensive behavior in multinational businesses, it is necessary to have multicultural skills that include ethics, respect and knowledge of a new culture and its rules.

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Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate
ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

Ke= r_f + \beta (r_m-r_f)

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

Ke= 0.03 + 1.2 (0.055)

Ke = 0.09600

<em>Now we solve for the intrinsic price using the gordon model</em>

<em>with multi-stage growth:</em>

First, we calcualte the future dividends

grow rate Dividends

0                1.25

1 0.25       1.5625

2 0.25       1.953125

3 0.25       2.44140625

4 0.25       3.051757813

4 0.03     3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic  value ofthe share:

\frac{Principal}{(1 + rate)^{time} } = PV

Present Value

1 1.5625 / (1+0.096)^1     =  1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

<u>Finally we add them and get:</u>

42.97160726

8 0
3 years ago
The debt has an interest rate of 8.50% (short term) and 10.50% (long term). The expected rate of return on the company's shares
viva [34]

Answer:

Re = 16.02%

Explanation:

current stock price 36 x 7,660,000 = 275,760,000

cost of equity = 17.5%

current short term debt = 141,600,000

cost of short term debt = 8.5%

current long term debt = 210,600,000

cost of long term debt = 10.5%

total financing = 627,960,000

  • equity = 275,760,000 / 627,960,000 = 0.4391
  • short term debt = 141,600,000 / 627,960,000 = 0.2255
  • long term debt = 210,600,000 / 627,960,000 = 0.3354

WACC = (0.4391 x 0.175) + (0.2255 x 0.085 x 0.75) + (0.3354 x 0.105 x 0.75) = 0.0768 + 0.0144 + 0.0264 = 0.1176 or 11.76%

under the new structure:

total financing = 627,960,000

  • equity = 325,760,000 / 627,960,000 = 0.5188
  • short term debt = 141,600,000 / 627,960,000 = 0.2255
  • long term debt = 160,600,000 / 627,960,000 = 0.2557

assuming WACC remains unchanged:

0.1176 = (0.5188 x Re) + (0.2255 x 0.085 x 0.75) + (0.2557 x 0.105 x 0.75) = (0.5188 x Re) + 0.0144 + 0.0201 = (0.5188 x Re) + 0.0345

0.5188 x Re = 0.1176 - 0.0345 = 0.0831

Re = 0.0831 / 0.5188 = 0.1602 or 16.02%

4 0
3 years ago
Anyone know the answer to this?
Ipatiy [6.2K]

Answer:

rework hope this helps :)

Explanation:

5 0
3 years ago
Would you rather ride in an airplane or drive in a car? Compare those risks?
gogolik [260]
I would fly a plane because there is like 1 in a million chance of crashing and in a car you could crash every time you see someone driving !! i need points!!

4 0
3 years ago
Why is bangladesh internationally competitive in textile and clothing manufacturer?
nalin [4]
The answer is Low wage rate. Processing plants in Bangladesh, the world's second-driving clothing exporter after China, minimize expenses by paying article of clothing specialists the most minimal wages on the planet — the present least is 3,000 taka, about $38, a month. The wage board suggested on Monday that it be raised to 5,300 takas, about $68.
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3 years ago
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