A. Hindsight bias- also known as the knew-it-all-along phenomenon or creeping determinism, refers to the common tendency for people to perceive events that have already occurred as having been more predictable than they actually were before the events took place.
If the company's annual profits decrease (the amount of cash they make per year) then that would lead to a decrease in the price of a company's stock.
Answer:
The answer is: A) strategic alliance
Explanation:
A strategic alliance is an agreement between two or more independent companies to participate in a mutually beneficial project. The companies share resources for this specific project while remaining independent in all their other business activities.
This is usually done to try to enter a new market or to develop a new product.
Answer:
Answer B.
Explanation:
EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.
