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2 years ago

The likelihood of entry of new competitors is affected by and .

1 answer:

4 0

The likelihood of entry of new competitors is affected by barriers to entry and expected retaliation of current industry organizations.

The likelihood feature describes the joint possibility of the located information as a function of the parameters of the chosen statistical model.

Whilst new competitors enter into an industry presenting equal services or products, an agency's aggressive role may be at hazard. Therefore, the danger of recent entrants refers back to the capacity of new businesses to enter into an industry.

The entry of a new competitor in a marketplace has a tendency to lessen the marketplace prices. while there are more organizations competing for the same marketplace proportion, clients choose people with decreased pricing, and the overall rate stage is going down.

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Given the following financial structure for Company S for all of 2016:

Mila [183]

Answer:

Explanation:

A.)

The Basic EPS can be determined by using the formula:

$\mathtt{Basic \ EPS = \dfrac{Net \ income \ attributabe \ to\ common \ stock \ holders }{\text{common stock outstanding throughout the year}} }$

$\text{Given Net income = \$2,600,000}$

$\text{Net income available for common stock holders = }$ $\text{ Net income given less dividend}$

$\text{ to preferred holders of stock}$

$\mathtt{=$2,600,000 - $100 \times 50000\times 6\%}$

$=\$2,300,000$

$\text{Common stock} = $800,000$

∴

$\mathbf{Basic \ EPS = \dfrac{\$2,300,000}{800,000} }$

$\mathbf{Basic \ EPS = \$2.88 \ per \ common \ stock}$

B.)

The calculations for the numerator and denominator effect are:

$\text{Calculation of the effect on incremental EPS}$

Convertible on preferred stock $\mathtt{=\dfrac{500,000 \times 100 \times 6\%}{50000\times 5}}$

$=1.20$

Convertible Bond $=\dfrac{500,000 \times 8\%\times 70\%}{\dfrac{500,000}{1000\times 20}}$

= 2.80

Stock options $= \dfrac{0}{100,000- (100,000\times \dfrac{60}{80})}$

= 0

Determination of the numerator & denominator effect for each convertible securities shown above are:

Numerator (N) Denominator (D) Dilution index = N/D

Net income $2,600,000

Less: Preferred $300000

Dividend

Common stock A

Net income $2,300,000 800,000 2.875

Add: Stock

Options (B) 0 25000

Total (C) = (A + B) $2300000 825000 2.788

Add: Convertible

Bonds (D) 428000 10000

Total (E) = (C+D) $2328000 835000 2.787

Add: Convertible

Preferred Stock (F) $300000 250000

Total (E) + (F) $2628000 1085000 2.422

C.)

Particulars Dilutive Index Rank (most dilutive is 1.)

Stock Option 2.788 1

Convertible Bonds 2.787 3

Preferred Stock 2.422 2

D.)

From above, the convertibles are diluted EPS (DEPS)

$\text{ DEPS =Net income available common stockholders + net tax dividend on convertible securities}$ ÷ $\text{weighted average no. of common shares + effect of convertible stock + convertible stock options}$

$\text{DEPS (1{st} stage) for only common stock}= \dfrac{2300000}{800000} = \$2.88}$

$\text{DEPS (2{st} stage)with \ stock \ options}= \dfrac{2300000+0}{800000+25000} = \$2.788}$

$\text{DEPS (3{st} stage)with \ stock \ options \& preferred \ stock }= \dfrac{2300000+300000+0}{800000+250000+25000} = \$2.42}$

3 0

3 years ago

Which term describes the restoration of the insured person to the financial position he or she was in before the loss occurred?.

Ksivusya [100]

The term that describes the restoration of the insured person to the financial position that he or she was in before the loss occurred is called indemnity. This allows protection to the insurer in case of loss and damage and will protect against any legal quandry that may occur.

4 0

4 years ago

Read 2 more answers

Max has earnings from his salary of $30,000. He contributes $600 toward his retirement account. He receives interest on his savi

tatuchka [14]

$30,000 is Max's adjusted income

3 0

3 years ago

Read 2 more answers

Lorillard Corporation has the following information for April, May, and June 2018: April May June Units produced 12,500 12,500 1

Llana [10]

Answer:

April ending inventory cost= $121,875

Explanation:

As per the data given in the question,

Unit production cost Absorption cost Variable cost

Direct material $15 $15

Direct labor 10 10

Variable factory overhead 7.5 7.5

Fixed factory overhead 5

Total cost $37.5 $32.5

Finished goods inventory = 12,500 - 8,750 = 3,750

Finished goods inventory cost using absorption costing = 3,750 × $37.50

= $140,625

Finished goods inventory cost using variable costing = 3,750 × $32.50

= $121,875

6 0

3 years ago

The price elasticity of demand, E, is defined as the:

Over [174]

Answer:

The correct answer is "Percentage change in quantity demanded divided by the percentage change in price of that good".

Explanation:

The elasticity of demand is a measure used in economics to show the degree of response of the quantity demanded of a good or service to changes in the price it presents. It grants the percentage change of the quantity demanded about a unitary percentage change in the price, with the other variables considered constant.

The E is a measure of the sensitivity of the quantity demanded of a good or service to changes in its price. Its formula normally produces a negative result due to the inverse nature of the relationship between the price and the quantity demanded.

Have a nice day!

6 0

3 years ago

The likelihood of entry of new competitors is affected by __________ and __________.

The likelihood of entry of new competitors is affected by and .