Answer:
Firms may have to bid up stock price to complete repurchase, thus paying too much for its own stock.
Explanation:
Generally, the price of stocks are not fixed, so it might take a long time for a stock repurchase or buyback to be completed. Investors like buybacks since they tend to increase the price of stocks, but it makes them more expensive for the corporation to repurchase them.
Buybacks are seen positive by investors because they will eventually increase the earnings per share (by decreasing the number of shares outstanding) and they are also taxed in a lower rate than normal income. Management will tend to start buybacks when they believe the stock price is undervalued and they have excess cash. This way they will achieve achieve two objectives with one action:
- lower equity costs
- increase stock price
Explanation:
<u>1.</u><u> How attractive is the industry? How will it's attractiveness change in the future</u>
Huawei is a Chinese telecommunications company that entered the business of selling smartphones and today is configured as the third largest smartphone manufacturing company in the world, behind only Samsung and Apple. This is an attractive market for the treatment of technological innovations so relevant to an information age that we live in today.
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<u>2.</u><u> What are the sources of Huawei's competitive advantage in the smartphone industry?</u>
The sources of Huawei's competitive advantages come from the special features that its smartphones have, such as technology interaction, fast system, product multifunctionality and chosen as the cell phone with the best camera in the world.
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<u>3</u><u>. How sustainable is their competitive advantage in the smartphone industry? What should they do to sustain its competitive advantage?
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Smartphone companies must sustain their competitive advantage through technological product innovations, as consumers increasingly need digital technology to meet their desires and needs with a device that fits in the palm of the hand.
It is important that the industry has a vision of the constant transformation and adaptation that this sector requires.
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<u>4.</u><u> What role does Hauwei's global strategy play in contributing to its competitive advantage in the industry?</u>
The role of Huawei's global strategy in contributing to its competitive advantage in the sector is to supply devices with the highest technology at a competitive price, observing technological changes and anticipating the needs of consumers, offering a quality and innovative product with highest degree of technology available on the market.
Answer: A customer loyalty program
Explanation:
A customer loyalty program is one of the type of marketing based program that is specifically designed to strengthen the relations between the organization and the consumers.
The main purpose of a loyalty program is that it helps in encourage and also motivating the various types of consumers for using the products and the services which is specifically related to the given program.
According to the given question, a customer loyalty program is best illustrating the given situation and the Daily needs reward zone is basically using this type of program.
Therefore, Customer loyalty program is the correct answer.
Answer:
(A)
bad debt expense 1,500 debit
account receivable 1,500 credit
(B)
bad debt expense 9,490
allowance for doubtful accounts 9,490
(C)
bad debt expense 10,015
allowance for doubtful accounts 10,015
Explanation:
(A)
Direct write-off doesn't use allowance,
bad debt is done directly to account receivable.
(B)
allowance = 11% of AR = 11% of 109,000 = 11,990
balance (2,500 credit)
11,990 - 2,500 = 9,490
(C)
allowance = 9% of AR = 9% of 109,000 = 9810
balance 205 debit
9,810 + 205 = 10,015
Comments: the allowance is expected to be 9% or 11% of AR
so the goal for B and C is to reach a final balance of 9% or 11% of AR
so we have to subtract the balance from the expected allowance to knwo the adjustment.
Answer:
d. $2,499,000.
Explanation:
Price per unit = $99.99
Variable cost per unit = $75
Contribution per unit = $99.99 - $75 = $24.99
Break even point is the sale value where all the variable and fixed cost covered by the business and the business is on No Profit and No Loss position. So, using break-even formula we can calculate the fixed cost value.
Break-even point = Fixed Cost / Contribution per unit
100,000 = Fixed cost / $24.99
Fixed cost = 100,000 x $24.99
Fixed cost = $2,499,000