Answer: Product differentiation strategy
Explanation: In the given case, the industry in which Thomas works depicts features of oligopoly with few firms operating at high level. Thus, increase in price by Thomas would shift the demand for consumers to other firms.
Hence Thomas should opt for product differentiation strategy and should increase those features which classify its products different from the others. In such industries, quality is the core essence and costumers are wiling to pay slight higher prices if the quality of the product offered is higher than others.
Hence Thomas should narrow the completion and should focus on inventing some unique features in his products.
Answer: $86,112
Explanation:
The MACRS depreciation rate for recovery period of 5 years is attached to the table below.
In the first year, there was a depreciation of;
= 299,000 * 20%
= $59,800
In the second year;
= 299,000 * 32%
= $95,680
In the third year;
= 299,000 * 19.20%
= $57,408
The Accumulated Depreciation in Year 3;
= 59,800 + 95,680 + 57,408
= $212,888
Book Value in third year;
= 299,000 - 212,888
= $86,112
Answer:
D) Japanese earthquake and tsunami
Explanation:
On March 11, 2011, a 9.1 magnitude earthquake occurred a couple hundred miles from Tokyo in the ocean. This earthquake caused a huge tsunami (30 feet high) that damaged large coastal areas in Japan, including several nuclear reactors and factory centers for major corporations like Toyota, Honda, Nissan, Toshiba, Sony, Canon, etc.
Answer:
D. 3.66%
Explanation:
For computing the after tax cost of debt we need to apply the RATE formula i.e to be shown in the attachment
Given that,
Present value = $2,120
Future value or Face value = $2,000
PMT = $2,000 × 6.6% ÷ 2 = $66.60
NPER = 18 years × 2 = 36 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 3.05% × 2 % = 6.10%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 6.10% × ( 1 - 0.40)
= 3.66%
Answer:
$160,000
Explanation:
On February 15, 20X8, S3 Corporation purchased the land from a non affiliate for $160,000.
That was the last operation involving a third party.
<u>The rest of the operation should not recognize any income or loss.</u>
If not, a company can create artificial gains and losses by selling the asset at diferent prices.
It will sale higher on one company to avoid a net loss
and then sale cheaper on another to decrease the taxable income.
That's why it will be "lock" at 160,00 until an operation is made with a non-affiliate company