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2 years ago

To see if valuing an investment as a real option creates any extra value for a firm, it is necessary to establish a ________.

Business

1 answer:

bogdanovich [222]2 years ago

4 0

A <u>benchmark </u>is needed and necessary to see if valuing an investment creates any extra value for a firm.

<h3>What is Benchmark in Business?</h3>

In business, a benchmark means the act of measuring the way your business is doing or performing in relation to your competitors in the same niche of your business.

Therefore, for you to see if valuing a business or an investment as a real option creates any value for a firm, it is important and necessary to establish a benchmark.

Learn more about Benchmark here:

brainly.com/question/226804

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Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 bil

KiRa [710]

Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a <u>failed diversification effort</u>.

<u>Explanation</u>:

Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:

- failing to integrate acquisitions

- unable to understand how the acquired organization’s assets would fit with their own lines of business

- paying high premium for the target's common stock

- not acting in best interest of shareholders

The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.

8 0

4 years ago

On December 31, 2017, Ainsworth, Inc., had 720 million shares of common stock outstanding. Thirty one million shares of 7%, $100

Oksana_A [137]

Answer:

Reported net loss $ (195)

Add: Cumulative preference dividend (31*$100*7%) $ (217)

Total loss $ (412)

Calculation of weighted average number of shares

Common stock outstanding on 12/31/17 (720*105%) 756.00

Treasury stock (-30*105%*8/12) (21.00)

Issuance (12*4/12) 4.00

Weighted average number of shares 739.00

Numerator / Denominator = Net loss per share

$ (412) / 739.00 = $ (0.56)

Calculation of Net Income

Reported net loss $ (195)

Add : loss from discontinuing operation $ 510

Income from continuing operation $ 315

Cumulative preference dividend $ (217)

Net Income $ 98

Numerator / Denominator = Net loss per share

$ 98 / 739.00 = $ 0.13

Comparative income statement 2018 2017

Earning(Loss) per common share:

Income from $ 0.13 $0.71 ($540/(720*105%))

continuing operation = $ 0.71

Loss from discontinued $ (0.69)

operation

Net Income (Loss) $ (0.56) $ 0.71

4 0

3 years ago

According to lewin's change model, the _____ stage involves providing employees with new information, new behavioral models, or

Sati [7]

<span>The answer to this question is unfreezing stage. Unfreezing stage is the stage of preparing the people to move and leaving the comfort zones. In this stage, in order for the unfreezing stage to become successful, the managers or leaders should command employees to embrace change end educate the people that change is needed to reach the company’s goal.</span>

3 0

3 years ago

Momentum Rollerblades has three product lineslong dashD, E, and F. The following information is available: D E F Sales revenu

maksim [4K]

Answer:

Increase in Net Operating Income = $3,000

Explanation:

Provided Current Operating income

D = $45,000

E = $15,000

F = ($5,000)

Total operating Income = $55,000

In case product f is dropped then fixed cost of $21,000 will not be incurred.

Total fixed cost of Product F = $23,000

Avoidable fixed cost = $21,000

Fixed cost still to be incurred = $23,000 - $21,000 = $2,000

Net operating Income will arise same for Product D and E, there will be additional fixed cost of $2,000 without product F

Net Operating Income will be

D = $45,000

Add: E = $15,000

Operating Income = $60,000

Less: Fixed Cost = -$2,000

Net Operating Income = $58,000 after dropping product F

Less: Net operating income with product F = $55,000

Increase in Net Operating Income = $3,000

4 0

3 years ago

Max points can water be wet

Montano1993 [528]

No water can't be wet

8 0

3 years ago

Read 2 more answers