Finally, T-mobile and Sprint will come together in a merger and it makes the United states cell phone provider market look like this AT&T 40%, Verizon 29%, T-Mobile 16%, Sprint 13%. So what are the cost and benefits for T-mobile?
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Finally, T-mobile and Sprint will come together in a merger and it makes the United states cell phone provider market look like this AT&T 40%, Verizon 29%, T-Mobile 16%, Sprint 13%. So what are the cost and benefits for T-mobile?
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- 8. Demand for a product is q = 100 – p and industry marginal cost is 40. Firms set competitive prices. One firm wishes to buy up its competition and become a monopoly, arguing that its costs would go down to a marginal cost of 20. Would the mergers-to-monopoly improve efficiency?I need assistance on Identifying each of the following as either capital budgeting (investment) or financing decisions and an explanation on why? Intel decides to spend $1 billion to develop a new microprocessor. Volkswagen borrows 350 million euros from Deutsche Bank. Royal Dutch Shell constructs a pipeline to bring natural gas onshore from a production platform in Australia. Avon spends 200 million euros to launch a new range of cosmetics in European markets. Pfizer issues new shares to buy a small biotech company.Ma3. You have been asked to advise the Chief Executive Officer of a major Hotel chain in your country. The domestic market is saturated, and you are considering penetrating global markets. Discuss FIVE potential payoff and FIVE risks of implementing a global strategy.
- 1. From the scenario, Identify what is the Market value of the firm's equity, the market value of the firm's debt, the cost of equity (required rate of return), cost of debt (yield to maturity on existing debt) and the corporate tax rate.DCC exports high-speed digital switching networks, and their largest and most important clients are in Asia. A recent financial crisis in Asia has diminished the prospects of new sales to the Asian market in the near term. However, you believe that DCC is a good investment for the long term. Suppose you hold 1,000 shares of DCC and the following two options are available in the market: (a) Call A: Delta = 0.6674, Gamma = 0.0176 (b) Call B: Delta = 0.574, Gamma = 0.019 What should be the options holdings if the combined stock and options portfolio is both delta and gamma-neutral (up to two decimals)? Assume that one option contract is based on 100 units of the stock. O a. Short 73.7 contracts of Call A and long 68.27 contracts of Call B O b. Long 73.7 contracts of Call A and short 68.27 contracts of Call B Short 68.27 contracts of Call A and short 73.7 contracts of Call B O d. Long 73.7 contracts of Call A and long 68.27 contracts of Call Bi-Qua group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below: a. How much is the annual sales volume (box) for each area to be able to compete on a competitive advantage strategy with competitors? b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.
- Please help me with this question cuz most of the responses are wrong. ThanksHumbolt Shipping Line, Ltd. based in Hamburg, Germany, must continually make significant capital investments in ships. Some of these decisions require comparisons of strategic alternatives. For example, not all of the company’s ships are the same size. Different-sized ships offer alternative advantages and disadvantages. Suppose the company is currently trying to decide between two investment options. It is weighing the purchase of three extremely large ships for a total of €2,500,000 versus five smaller ships for a total of €1,400,000. Information regarding these two alternatives is provided below: Three Larger Ships Five Smaller Ships Initial investment €2,500,000 €1,400,000 Estimated useful life 20 years 20 years Annual revenues (accrual) € 500,000 € 380,000 Annual expenses…There are 3 companies given operating in different fields. You have to choose and substantiate possible models for international expansion of the businesses. Let us suggest, the companies are scaling their business up or exporting their goods or services. The companies are: 1. Local European leading cosmetics manufacturer at medium scale products price range. Not Bio or Eco specialized. Annual turnover is 10 million euros. Local market penetration and brand recognition is 90%. MRA 2. Local market research consulting company having a patented statistical method for analysis and segmentation of consumers. CVT 3. Local Higher School of Management having highly qualified academic staff, but missing the positive image inside the country. Define expansion’s: strategy, geography, format, pricing, volumes, budgets.
- Can you help me answer this with a step by step explanation and display any formulas used.? There is a firm, which we are prospecting as a purchase candidate. It has the following features we find attractive. First, it will enable us to sell to the clients of this firm what we already are selling our existing clients. The revenue addition will be $12 million. However, it will induce $3 million more expenses in attaining that higher level of revenue. Secondly, it will enable us to sell a division of the firm that does not rally connect with our operations for $5 million. Thirdly, since there is a lot of repetition of positions ( we are in the same line of business) we can lay off 50 employees permanently. The average salary of those employees is $60,000. The coc of the firm is 10%. Calculate the amount that we can bid to acquire this company.Suppose IBM signed a contract to buy a supply of computer chips from a German firm. Theprice is 10 million euros, and the chips will bedelivered immediately, but IBM can delay payment for six months if it wants to. What riskwould IBM be exposed to if it delays payment?Can it hedge this risk? Should it pay now ordelay payment?Humbolt Shipping Line, Ltd. based in Hamburg, Germany, must continually make significant capital investments in ships. Some of these decisions require comparisons of strategic alternatives. For example, not all of the company’s ships are the same size. Different-sized ships offer alternative advantages and disadvantages. Suppose the company is currently trying to decide between two investment options. It is weighing the purchase of three extremely large ships for a total of €2,500,000 versus five smaller ships for a total of €1,400,000. Information regarding these two alternatives is provided below: Three larger shipd Five smaller ships Initial investment 2,500,000€ 1,400,000€ Estimated useful life 20 years 20 years Annual revenues(accural) 500,000 € 380,000€ Annual expenses(accural) 200,000€ 180,000€ Annual cash inflows 550,000€ 430,000€ Annual cash outflows 222,250€ 206,350€ Estimated salvage value* 500,000€ 0€ Discount rate 9% 9% Instructions…
