Answer:
multi-domestic corporation
Explanation:
A multi-domestic corporation are the localized form of multinational corporations. They operate through domestic channels. The management is headed by the domestic operations. The managers and operations are the local personnel who make the decisions and make significant changes in the respective countries. The management of McDonalds, Burger King, Pizza Hut and KFC comprises of the local team in every country. The decisions and regulations are termed in accordance to the culture, environment and market of the particular country.
Answer:
Ki = 0.063 or 6.30%
Explanation:
The CAPM or Capital asset pricing model is an approach to calculate the required rate of return of a stock. The required rate of return or cost of equity is the minimum return required by the investors o invest in a stock based on the systematic risk of the stock. The formula to calculate the required rate of return of a stock using the CAPM is,
Ki = Rf + β * (Km - Rf)
Where,
- Rf is the risk free rate
- β is the beta of the stock
- Km is the expected return on the market
Ki = 0.03 + 1.1 * (0.06 - 0.03)
Ki = 0.063 or 6.3%
