Its achieve by preserving what is distinct about the company.
Strategic positioning is basically an effort made by an organization in order to distinguishes itself in a valuable way from its competitors and delivers value to clients in way different from others.
- According to Porter, he states that a "company's relative position within its industry matters for performance".
- A proper strategic positioning have a way of influencing how customers perceive a product in relation with other competitors product.
In conclusion, this type of positioning helps to achieve sustainable competitive advantage by preserving what is distinct about the company.
Learn more about Strategic positioning here
<em>brainly.com/question/8999192</em>
Answer:
a) 9.00 %
b) 7.80 %
c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough
d) 9.00 %
e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs
Explanation:
a)
Ke 0.12
Equity weight 0.5
Kd(1-t) = after tax cost of debt = 0.06
Debt Weight = 0.5
WACC 9.00000%
c)
Ke 0.12
Equity weight 0.3
Kd(1-t) = after tax cost of debt = 0.06
Debt Weight 0.7
WACC 7.80000%
d)
<em>Ke 0.16</em>
Equity weight 0.3
Kd(1-t) = after tax cost of debt = 0.06
Debt Weight 0.7
WACC 9.00000%
Answer:
b) increase; fall; rises
Explanation:
Federal budget comes from tax revenues and was drained by transfer payments.
In a recession, firms go out of businesses and people don't spend much. There will be less tax on goods and firms' profits. On the other hand, more people become unemployed and become entitled to receiving transfer payments.
Answer:
No
Explanation:
Long term bonds might not be great investments if the interest rate fall or even slide into negative value in the future. This means that the bond will become insignificant in value.
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