Answer:
B. A strategic action because such a large plant expansion will require a major commitment of resources.
Explanation:
There are two major forms of action in business decision making: strategic and tactical. Strategic action deals with decision that require major planning and investment of resource. Strategic actions have long term implementation and effect and are difficult to reverse.
Tactical actions, on the other hand, are flexible and involves actions taken on short term basis. Tactical actions are majorly bye-product of strategic decision.
On this note, Circus Aircraft`s decision to double its plant capacity over the next two years is a strategic action because such a large plant expansion will require a major commitment of resources. And the action will not easily reversible.
Other options in the question are not totally right.
Answer:
the present value of its growth opportunities (PVGO) is $0.56
Explanation:
The computation of the present value of growth opportunities is shown below:
= Price per share - (Earnings ÷ required rate of return)
= $41 - ($3.64 ÷ 9%)
= $41 - $40.44
= $0.56
hence, the present value of its growth opportunities (PVGO) is $0.56
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
The correct answers are letters "A", "B", and "C".
Explanation:
Corporate bonds are securities that firm issues to be sold to investors to raise funds that will be using to keep the company up and running. Investors profit from the interest rate dealt in the bond agreement or sometimes they obtain physical assets of the organization as collateral. If in the <em>secondary market bonds</em> are issued at a premium, the premium can be amortized or applied to the bond base but if the bonds were issued at a discount, <em>discount bond rules</em> take into place. The <em>interest payment received</em> thanks to the bonds are recorded in the gross income.
Answer:
is available to all and cannot be denied to anyone.
Explanation:
Public goods are both nonexcludable and nonrivalrous. This means that everyone is entitled to use them and when someone is using them it doesn't mean others can't use them at the same time. Of course there is always a limit to the capacity of their use, like roads can only be used by certain amount of cars.
For this particular characteristic of public goods is that private firms don't offer them. Private firms' main concern is making the largest possible profit and public goods usually aren't profitable. That is why the government has to provide public goods since no one else will.
