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3 years ago

A downfall of the infant-industry argument is that

1 answer:

8 0

A downfall of the infant-industry argument is that o<span>nce established, a tariff is politically difficult to remove.
For new industries, it almost impossible for a new startup to compete against a well-established industry unless they have a unique differentiation in their product.</span>

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Having had no prior knowledge of the market for his product sweater, what approach did Jack McCarthy of Ugly Christmas Sweaters

telo118 [61]

Answer:

When any company wants to sale their product without prior knowledge of the market then it's a disaster.

First thing Jack can do is "Test Marketing". If any company has no knowledge of market then fastest way to know your market is test marketing. Jack must put his sweaters in small quantity for sale at different locations. Test marketing needs to be done for whole week. Jack needs to collect the feedback from its customers too. Feedback is the way jack can know the market. Without knowing the market and customers, it's really hard to market or sale your product. Feedback from test marketing activity will actually give him market knowledge and customer's feedback.

6 0

3 years ago

Heavy Metal Corporation is expected to generate the following free cash flows over the next five years.

mezya [45]

Answer:

Enterprise value of Heavy Metal= $1,080.766

Share price = $18.945 per unit

Explanation:

<em>The value of a firm is the present value of the free cash flow discounted at the weighted average cost of capital</em>

Year PV

1 52.1 × 1.14^(-1) = 45.70175439

2 68.6 × 1.14^(-2) = 52.40073869

3 78.6 × 1.14^(-3) = 53.05276117

4 74.4× 1.14^(-4) = 44.05077264

5 81.1 × 1.14^(-5) = 42.12079868

Year and beyond

81.1 × 1.04/(0.14-0.04) = 843.44

Total value = 45.70+ 52.40+53.052 + 44.050 +42.120+ 843.44 = 1080.766826

Enterprise value of Heavy Metal= $1,080.766

Share price = Total value - Debt value / number of shares

= (1,080.766 - 304 )/ 41 million units= $18.945 per unit

Share price = $18.945 per unit

4 0

3 years ago

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current

goldenfox [79]

Answer:

A. $287,000

B. $192,050

Explanation:

a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.

b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050

Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:

=[$287,000 - ($181,050-$86,100)]

=$287,000-$94,950

=$192,050

5 0

2 years ago

Newark Company has provided the following information:

djverab [1.8K]

Answer:

$1829000.

Explanation:

Given: Cash sales, $540,000.

Credit sales, $1,440,000.

Sales returns and allowances, $99,000.

Sales discounts, $52,000

Now, computing net sales of Newark.

Net sales= $Cash\ sales+ Credit\ sales- Sales\ discount- Sales\ return$

Net sales= $540000+ 1440000- 99000-52000$

⇒ Net sales= $1980000- 151000$

∴ Net sales= $\$ 1829000$

Hence, Newark´s net sales is $1829000.

7 0

3 years ago

Adam strongly believes that his employees have a positive attitude toward their work. He sees in them a potential to take risks

PolarNik [594]

Answer:

B. Theory Y

Explanation:

According to theory Y assumptions, employees are self-motivated and ambitious. They can exercise greater control and are willing to accept new responsibilities. Theory Y supposes that employees love to work, and that they find motivation in the completed jobs.

Managers who subscribe to theory Y believe that employees are intelligent, innovate and creative people whose input can help solve organizational problems. Theory Y suggests that if employees are given more freedom in the workplace, they are likely to perform their best, which increases productivity in the workplace.

Theory Y managers hold optimistic and positive views on their employees. They encourage a collaborative approach to management, where there is a greater relationship between managers and their subordinates.

7 0

2 years ago