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4 years ago

The threat of substitutes is the most significant force in the _____ industry structure introductory decline growth mature

1 answer:

7 0

The threat of substitute is the most significant force in the DECLINE industry structure.
At the decline stage of an industry, capacity to produce a product exceed supply, thus increasing the power of buyers. At this stage, substitute is the most potent operating force and is usually the reason for the declining of the company.

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GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equi

AVprozaik [17]

Answer:

12.085 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt

Remember to use the after tax cost of debt :

after tax cost of debt = interest x ( 1 - tax rate)

= 8.00 % x (1 - 0.35)

= 5.20 %

therefore,

WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55

= 12.085 %

thus

the firm's WACC given a tax rate of 35 percent is 12.085 %

6 0

3 years ago

Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)

Mariulka [41]

Answer:

GOMEZ CORPORATION

Comparative Income Statements

For Years Ended December 31

Current Year Prior Year

$ % $ %

Sales $785,000 100 $640,000 100

Cost of goods sold 568,100 72.4 288,800 45.1

Gross profit 216,900 27.6 351,200 54.9

Operating expenses 130,400 16.6 221,600 34.6

Net income $86,500 11.0 $129,600 20.3

The figure used to calculate the percentages is that of sale revenue. Each figure is expressed as a percentage of sales to determine the percent of expenses , profits etc.

5 0

3 years ago

Andy, a junior in high school, is considering his options for employment following graduation. His uncle, a master electrician,

mojhsa [17]

Answer:

Andy should look and identify his field of interest before choosing a specific career path. If she has none of preferences for his career choice then se can look for other factors to select specific career path.

Explanation:

Andy's grandfather has spend his life in building trades and he is a successful person. He thinks Andy should choose same career path as he did and he can be successful too but this is not the case. The thing can be different in this era, the preferences and nature of Andy might be different from his grand father. There are many others factors which also need to be considered as the job security, learning potential in the field, progress in career, wages and pay rise, working environment and others.

3 0

3 years ago

The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new compe

kozerog [31]

Answer: Option D

Explanation: In simple words, technology upgrading refers to the process in which a firm intensely changes the level of technology it is using for its operations. In such a process the organisation implements a more advanced technology so that it can enhance the operational activities within.

Technology up gradation is a necessity in today's competitive business environment but if implemented in a right way it can give an organisation a strong competitive advantage which will open new doors to success.

For example automobile industries upgraded their technology to a higher level which made the operation at such a high scale that it became an oligopoly industry.

An oligopoly industry is the one in which there are few firms operating at a high scale with difficulty in entry due to heavy investments.

7 0

3 years ago

Once the adjusting entries are posted, the adjusted trial balance is prepared to a.verify the correct flow of accounts into the

Sauron [17]

Answer:

d. verify that the debits and credits are in balance.

Explanation:

Option A is wrong because without adjusting entries, there is not necessary to adjust the flow of the financial statement.

Option B is wrong because, if we do not give adjusting entries, a debit and a credit entry will not come, and that cannot disturb the income statement.

Option C is wrong because whether the adjusting entries are posted or not, net income will always go to the statement of owner's equity.

The purpose of adjusting entries is to verify that the debits and credits are in balance. Therefore, option D is the answer.

3 0

3 years ago