a. A group of potential foreign investors have identified your business as a question mark using the BCG portfolio matrix. You prefer a group of local entrepreneurs to buy into your firm. Paint a picture of characteristics of the firm and propose means to improve (5 marks).
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- Discuss how you would expect the financing choices of the following firms to differ and explain the reasons for the differences. Include international and Caribbean examples where possible. 1. A firm in its start-up phase versus an established ventureYou are looking to buy stock in a high-growth company. Which of the following ratios best indicates the company's growth potential?(a) Debt ratio(b) Price/earnings ratio( c) Profit margin( d) Total-assets-turnover ratioYou are trying to invest $100,000 in a portfolio of stocks and bonds. You want the highest return possible but have a number of criteria to ensure diversification and risk management. The funds available for investment and their information are provided below. 2) Bond Rating| Year to Maturity Investment "Tech Sector" Expected Return GE Bond BBB 4 No 4.25% AMD Stock Yes 14% -- -- Moscow Bond ΑΑA 10 No 2.3% Apple Stock Pape Stock Yes 7% No 8.1% -- Tesla Inc. Stock Yes 6% -- Junk Inc. Bond D 3 No 17% Assume you want no more than 50% of total investments in stocks and no more than 15% invested in bonds with a rating below “BBB". Additionally, assume you want some liquidity such that no more than 70% of your investments can be in bonds with greater than 5-years until maturity. Further, you want at least 40% of your total investments in the Tech Sector (stocks or bonds). In Excel, create an LP that maximizes expected return subjects to the investment constraints listed above. Make sure to…
- 5. Explain in 175 words the difference between diversified full-line investment banks, full-line national firms, and various specialized types of firms such as regional investment bankers or venture capital fims.Provide a critical analysis using Porter's Five Forces Model by taking a company of your choice.Identify an existing business in the area that you believe would be an attractive franchising candidate. Provide 1.) a brief description of the business as well as a link to this business’ website or preferred social media platform;
- Assume that a national restaurant chain called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $35 per share. Instructions: Enter your answers rounded to 1 decimal place. a. What is the amount of economic investment that has resulted from BBQ's actions? $ million b. How much purely financial investment took place? 2$ millionThe GMO Emerging Markets Fund concentrates in investing in the world's emerging stock markets. Mr Liam, an experienced international investment and finance professionanl and is actually interested in the Mexicans stock market. Based on your understanding of the efficient market strategy and hedging, assess the claim that "changes in exchange rates impact contract settlement, business valuation, and cash flows." And kindly advice and recommend Mr Liam on the potential implications for GMO emerging market funds.103) The following are examples of waves of franchising in healthcare, except for? a) Consolidation of long-term care facilities by larger multi-state organizations. b) In-home senior companion care and services c) An evolving model of franchising in medical services d) Product distribution, such as Pearle Vision, focusing on the sale of glasses and accessories
- Is it advisable for investors to make decisions solelybased the company’s EBITDA? Why?Vanguard is now one of the world’s largest investment management companies. It became an industry giant by leading the way in low-cost passive index investing. In active trading, an investment manager is compensated for making an educated decision on which stocks to sell and which to buy. This incurs both transactional and management fees. In contrast, passive index portfolios aim to mirror the movements of a major market index like the S&P 500, Dow Jones Industrial Average, or NASDAQ. Passive portfolios incur fewer fees and can be managed with lower operating costs. A measure used to compare operating costs in this industry is known as the expense ratio, which is the percentage of an investment that goes toward expenses. In 2018, Vanguard’s expense ratio was less than 18 percent of the industry’s average expense ratio. Vanguard was the first to capitalize on what was at the time an underappreciated fact: Over long horizons, well-managed index funds, with their lower costs and…Is it possible for an investor to earn abnormal returns. Discuss in the context of efficient market hypothesis (EMH).