From your understanding of Porter's Competitive Forces complete the following table for STC Telecommunication Company indicating the level of influence each force has and mention one factor or example to support the level of influence you chose. STC Influence Force Factor (High, Moderate, Low) Ex: STC is among a highly competitive environment and is in constant war with Batelco and Zain to maintain current customers and to acquire new customers. Ex: High Rivalry of competitors Threat of New entrants Threat of Substitute products Bargaining power of customers Bargaining power of suppliers

From your understanding of Porter's Competitive Forces complete the following table for STC Telecommunication Company indicating the level of influence each force has and mention one factor or example to support the level of influence you chose. STC Influence Force Factor (High, Moderate, Low) Ex: STC is among a highly competitive environment and is in constant war with Batelco and Zain to maintain current customers and to acquire new customers. Ex: High Rivalry of competitors Threat of New entrants Threat of Substitute products Bargaining power of customers Bargaining power of suppliers

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Which of the following statements is incorrect? Question 6 options: Many large firms operate different divisions in different industries, and this makes it hard to develop a meaningful set of industry benchmarks for these types of firms. Financial ratios should be interpreted with caution because it may be difficult to say with certainty what is a "good" value. For example, in the case of the current ratio, a "good" value is neither high nor low. Financial ratios should be interpreted with caution because higher value of profitability ratios imply greater efficiency in asset management. Ratio analysis facilitates comparisons by standardizing numbers. Financial ratios should be interpreted with caution because there exist seasonal and accounting differences that can reduce their comparability.
Consider a company faced with a competitor's price reduction. Should the company also reduce price in order to maintain market share or should the company maintain its current price? The company has conducted some preliminary research showing the financial outcomes of each decision under two competitor responses: the competition maintains its price or the competition lowers its price further. The company feels pretty confident that the competitor cannot lower its price further and assigns that outcome a probability (p) of 0.7, which means the other outcome would have only a 30 percent chance of occurring (1-p=0.3). These outcomes are shown in the table below:Competitive ResponseCompany action Maintain Price, p=0.7 Reduce Price, (1-p)=0.3Reduce Price $155,000 $125,000Maintain Price $165,000 $95,000What is the expected value of perfect information (EMV Subscript PI)? Should the research be conducted? Assume that conducting more research costs $15,000.
A financial services company is considering investing in a new fintech startup that has developed a new technology platform for investment management. The company is concerned about the risks associated with the investment and wants to evaluate the potential return on investment. You have been hired as a consultant to help the company make an informed decision. Which of the following financial ratios would be most appropriate for the financial services company to evaluate the financial health and performance of the fintech startup? Gross profit margin Debt-to-equity ratio Return on investment (ROI) Price-to-earnings (P/E) ratio
The firm's self-supporting growth rate is influenced by the firm's capital intensity ratio. The more assets the firm requires to achieve a certain sales level, the lower its sustainable growth rate will be. Many experts argue that it is better for an organization to grow organically or by putting the money back into the business and not taking on debt. Consider your own organization that you currently work for or have worked for in the past. What is their approach to growing the business? How would you advise your company based on what you have learned this week in terms of self-supporting growth?
9. Which of the following firms are more likely to hold NFAA. A firm who operates in a competitive industry and has done many acquisitions in recent years.B. An international firm that faces restriction in repatriating its profit back to the home country. C. A firm that has been operating for many years with stable profitability in a traditional industry. D. A firm whose operational risk is very high.
Assuming that the fiscal health of the Health Company is not optimal, explain how Return on Equity (ROE) can help justify paying dividends to shareholders and increasing the company's debts. If Liver Corporation has a lower price/earnings (P/E) ratio than another firm engaged in the same business, what reasons might explain these differences? Describe at least three problems encountered in the analysis of financial indicators. Explain how the DuPont equation can help in analyzing company results.
Which statement is incorrect? We cannot use profitability to value Coca Cola because it has negative earnings To avoid negative earnings but still capture profitability, one should use sales divided by expenses O To capture innovation growth, we should use R&D growth O To capture how early in the cycle firms spend on innovation, they should use R&D/sales
The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in the manufacture of craft papers. Some financial statement values for each company follow. Use them in a ratio analysis that compares the firms' financial leverage and profitability. a. Calculate the following debt and coverage ratios for the two companies. Discuss their financial risk and ability to cover the costs in relation to each other. (1) Debt ratio (2) Times interest earned ratio b. Calculate the following profitability ratios for the two companies. Discuss their profitability relative to each other. (1) Operating profit margin (2) Net profit margin (3) Return on total assets (4) Return on common equity c. In what way has the larger debt of Timberland Forest made it more profitable than Pelican Paper? What are the risks that Timberland's investors undertake when they choose to purchase its stock instead of Pelican's? a. The debt ratio for Pelican is %.…
What are some advantages of invetsting in industy competitors? ie., You own stock in Walgreens and you also choose to invest in a competitor such as CVS How would investing in an industry's competitor help ensure a satisfactory return even if the original company's value depreciates?
1.Write an overall conclusion on which of these two (2) networks giants fared better? Which companywould you rather invest in? Why? 2.Write a recommendation to the management of the other network giant which fared worse. By referringto the ratios computed, what can you recommend so that management could improve? The proposalshould summarize the significant ratios selected and explain why you chose to highlight those ratios.
Read the article below and answer the questions. Required:a. What is leverage? Explain the different types of leverage? b. From the article, the Chief Executive Officer (CEO) of AirAsia Group Berhad is tryingto cope with what type of leverage? Please discuss THREE (3) points to support yourargument.
Highlight key findings on Coca Cola HBC AG and risks associated with its international financial market. Give your recommendations & conclusions in based on the comparison to theoretical perspectives & empirical evidence as well as practical justifications Ensure answers are referenced & cited

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