1. In what way can the following basic predispositions affect an MNE’s strategic planning: ethnocentric, polycentric, region-centric and geocentric?
2. Once Bitten Corp. uses no debt. The weighted average cost of capital is 5 percent. If the current market value of the equity is $16 million and there are no taxes, what is EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) EBIT $
3. You are a new financial manager and your boss asks you to add together the total compensation of the owners, directors and managers and then divide this figure by total sales. How would you classify this ratio? Who would want this information and why?