Answer: A) cost-leadership business strategy
Explanation:
Cost leadership business strategy is a
- strategy of getting a competitive advantage by having the lowest cost of operation in the entire industry.
- makes a reasonable profit on each sale because you've reduced costs.
Here, To gain an advantage over other computer chip makers, Sematech focuses on <u>reducing its costs below all of its competitors</u> .
where as product differentiation is a technique use to differentiate a product from similar offerings on the market.
So, Sematech is pursuing a<u> cost-leadership business strategy</u>.
So, correct option is (A).
<span>A) 5.5%
A) rE = Div1 / P0 + g
0.1 = 0.045 + g, so g = 5.5%</span>
The answer should be software programming
I hope this helps you!!!
Answer:
The company's cost of preferred stock for use in calculating the WACC is 9.65%
Explanation:
For computing the cost of preferred stock, the following formula should be used which is shown below
= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)
where,
Flotation cost = 1- rate
= 1- 4% = 0.96
= $9.50 ÷ ($102.50 × 0.96)
= $9.50 ÷ $98.4
= 9.65%
The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.
Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%
