Recently,Sony Selected Sir Howard Stringer as CEO

question 18

Multiple Choice

Recently,Sony selected Sir Howard Stringer as CEO. Sir Howard is not Japanese and he was not a Sony employee before his selection. Which of the following statements is FALSE?

• A)Sony's top management team will be more heterogeneous with the addition of Sir Howard.
• B)Sir Howard will have a broader perspective of the firm and its competitive environment than would a Sony insider.
• C)If Sony's top management team is homogeneous, Sir Howard's future impact on Sony's strategy is ambiguous.
• D)The decision-making process on Sony's top management team will be smoother and faster with the addition of Sir Howard.

---

Definitions:

Dividend Growth

The rate at which a company's dividend payments increase over time, often used as an indicator of financial health and future performance.

Weighted Average Cost of Capital (WACC)

An estimation of a company's capital cost where each type of capital is weighted according to its proportion.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments to shareholders.

Market Risk Premium

The additional return an investor expects to receive from an equity investment over the risk-free rate, as compensation for taking on higher risk.