Real Options: Arturo Berhad Should Expand The Business
[2023-10-12 04:55:33]
Equity cost = 16.65% Rd = Debt cost = 00% E / V = Percentage of finance equity = 100 (a) (i) WACC = E / V × Re + D / V × Rd × / 130 D / V = debt finance ratio = 30/130 TC = corporate tax rate = 0.25 = 25% WACC = 100/130 × 16.65% + D 30/130 × 00% × (1 - 0.25) capital cost = 14.02% 5% = 11.52% * Re = 3% + 1 (6.5%) = 16.65% (a) (2) 0 year 1 year 2 years 3 years 4 years 5 years Sales unit (A) 2,000 3,500 4,200 5,000 5, 100 income (B ) 17,000,000 29,750,000 35,700,000 42,500,000 43,450,000 Production cost (3,400,000) (5,950,000) (7,140,000) (8,500,000) (8,670,000) Direct marketing expenses (1,700,000) (2,975,000) (3,570,000)
Adventa Berhad today has a new potential market all over the world to continue to expand its business activities. This is a good opportunity for Adventa Berhad to provide more health products as the world's aging population has dramatically increased over the past two decades. This is because these elderly people need more health supplements than younger generations. Adventa Berhad can try to join a joint venture with a local company when expanding its business to new markets. By so doing, Adventa Berhad can overcome the weaknesses and weaknesses of its weaknesses as well as expand market share in the industry. In addition, Adventa Berhad can save money as local companies already have all the important information about the local market.
From the viewpoint of expanding market share, Adventa Berhad is lagging behind its competitors. From reliable market analysis, Top Glove and Supermax are expanding their business in more than 140 countries. At the same time, Adventa Berhad has not reached the number of these countries yet. In terms of marketing, Adventa Berhad is slightly better than rival Latexx. This shows that Adventa Berhad is working hard on selling its products. In terms of distribution channels and customer service, Adventa Berhad is superior to Latexx, but it is still behind Top Glove and Supermax. Adventa Berhad has about 5 offices, 5 factories and 1 warehouse all over the world. As a result, they constantly create a successful supply chain and maintain an efficient value chain. Adventa Berhad's customer service is also better than Latexx. Their efforts and commitments are accepted and they provide high quality service to their customers.
In February 2010, 100 PLUS and AirAsia Co., Ltd. Signed a cooperation agreement to officially sell 100 PLUS from Malaysia's AirAsia flight. AirAsia Limited is a leading airline company in Malaysia and as a partner of AirAsia, has a truly competitive advantage in F & N. This agreement is an important step in expanding branch offices to overseas business. Dehydration of passengers occurs frequently in airplane trips, and 100 PLUS passengers can be dehydrated. Support for AirAsia is like advertising effect and there is 100 PLUS appearance as long as there is a flight.