Outstanding Debt $160.00 $250.00 Both firms are in steady state and are expected to grow 5% a year in the long term. Capital spending is expected to be offset by depreciation. The beta for both firms is 1‚ and both firms are rated BBB‚ with an interest rate on their debt of 8.5%. (The treasury bond rate is 7% and risk premium is 5.5%) As a result of the merger‚ the combined firm is expected to have a cost of goods sold of only 86% of total revenues. The combined firm does not plan to borrow additional
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Makadok (2001) emphasizes the distinction between capabilities and resources by defining capabilities as “a special type of resource‚ specifically an organizationally embedded non-transferable firm-specific resource whose purpose is to improve the productivity of the other resources possessed by the firm” [4](p389). “[R]esources are stocks of available factors that are owned or controlled by the organization‚ and capabilities are an organization’s capacity to deploy resources”:[3] p. 35. Essentially
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more prevalent in advertisingintensive (consumer-oriented) industries‚ and CSR is more positively related to profitability in these industries. Further‚ the effect of CSR on profits is stronger in competitive industries‚ especially when few other firms undertake such actions‚ suggesting that CSR may be used as a means of differentiation in otherwise competitive environments. We also find tentative evidence that the profit effects of CSR are more positive when large external shareholders are on
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database. The first picture is of the contents of the database and the way it is organized; and the second picture is of what can be done with the contents. We can write a Custom Research Paper on SQL for you! Briefly‚ in the case of the small firms database‚ the contents were the qualitative and quantitative data obtained with the three instruments AQ 1985‚ SSI 1985‚ and RIQ 1988; and the way in which they were handled was governed by a language made available with the software used‚ known as
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and constraints on firms and determines strategies that will result in superior returns. (External Environment à Organization) Most firms competing in an industry or an industry segment control similar sets of strategically-relevant resources and thus pursue similar strategies. Resources used to implement strategies are highly mobile across firms. Organizational decision-makers are assumed to be rational and committed to acting only in the best interests of the firm. Study the external
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If you go into your local store you will likely find a shirt made in Taiwan‚ a toy made in China‚ and an electronic made in Japan‚ all of which are made under a U.S. firm. This is a prime example of globalization which has become common place for large firms. While globalization is viewed as a way to increase business by firms‚ it is a risky venter with both positive and negative impact. Globalization is the act of moving away from distinct national economic units and toward one huge global
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the firm would have positive excess cash from 2009 instead positive excess cash from 2011 with a 40% payout ratio. This will enable the firm to use its excess debt capacity to fund its expansion needs‚ keeping within the debt-equity ratio of 40%. 40% - With a 40% payout ratio‚ the projections of 2005 would leave the debt equity ratio at 35%‚ which still gives the firm some debt capacity‚ albeit very little flexibility if it wants to keep within the 40% debt equity ratio. Perhaps the firm would
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Chapter 12 Strategies for Analyzing and Entering Foreign Markets Copyright â 2013 Pearson Education Chapter 12 - 1 Learning Objectives ῆ Learn how firms analyze foreign markets ῆ Explore how firms choose a mode for entering a foreign market ῆ Investigate exporting and types of intermediaries that help export goods ῆ Identify international licensing issues and Education Copyright â 2013 Pearsonpros and cons of Chapter 12 - 2 Learning Objectives ῆ Identify basic international
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circumvent legal and other protective measures and benefit from imitating an innovation. | True | False | | Your Answer : | True | Correct Answer : | False | Your Marks : | 0 out of 1 | | | 2) According to Teece’s framework‚ a firm should outsource a generic complementary asset even if it has more than sufficient resources to perform the activity in-house. | True | False | | Your Answer : | False | Correct Answer : | True | Your Marks : | 0 out of 1 | | |
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1) All firms have almost entirely emergent strategies. True False 2) Activity ratios are ratios with some measure of profit in the numerator and some measure of firm size or assets in the denominator. Answer True False 3 Consolidation strategy is a good option in what type of industry? Answer | | Mature | | | Emerging | | | Fragmented | | | Declining | 4) A(n) ________ is any individual‚ group‚ or organization outside a firm that seeks to reduce the level of that
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