Answer:
Option A. There exist economies of scope between diversified business units
Explanation:
The reason is that diversification is lowering the industry risk of the business the company is in by investing in several other industries. This helps us to lower the risk and have a steady returns in the subsequent years. This means uncertainty related to cash flows is lowered and this has also increased the chances of cash surplus for subsequent years.
Furthermore, if the investments made in diversified business units possesses economies of scope, which means that we are in related diversification because we are manufacturing different but similar goods which are substitutes to each other from large to some extent. This brings economies of scope and would lower the total operating cost of company. Hence the <u>Option A</u> which says that economies of scope does add value to the company is the right option.
Option B is not preferable option as the option of investing in different businesses is choosen in the option A.
Option C is again the same as Option B and the difference is that it uses the word several unrelated businesses instead of comprehensive business portfolio which is the same thing. Hence <u>Option C</u> is also not preferable option here.
<u>Option D</u> is incorrect because when we acquire an organization it is the move of increase in risk portfolio because acquisitions are mostly not a sound investments and not a part of diversification strategy as the company is putting all the eggs in the single basket.
<span>The pace of tuition hikes exceeded the 2013 average rate of inflation by two and 9/10 (2.9) percent. This was a smaller jump than pace of tuition hikes over the average rate of inflation 2012, which was four and one-half (4.5) percent.</span>
Answer:
a. .4223
Explanation:
Kim's Bridal shoppe has common stock, bonds and preferred stock in its capital. To identify capital structure weight of common stock we calculate value of each capital.
Common Stock : 10200 shares * $36 = $367,200
Preferred Stock : 215 shares * $87 = $18,705
Bonds Outstanding : 520 Bonds * $1,000 * 93% of par = $483,600
Total capital : $367,200 + $18,705 + $483600 = 869,505
Common stock share : $367,200 / $869,505 = 0.4223
Answer:
Explanation:
1. Hilary's father in Sweden orders a bottle of Vermont maple syrup from the producer's website: included in U.S exports (X) account because it produced in the U.S soil.
2. Hilary gets a new video camera made in the United States: included in Consumption (C) account.
3. Edison's employer upgrades all of its computer systems using U.S.-made parts: included in the Investment (I) account because it is capital expenditure.
4.The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore: included in government purchases (G) account because Pennsylvania repaves are paid by the state of Pennsylvania.
5 .Edison buys a sweater made in Guatemala: included in Imports (M) account because it is consumed in U.S soil but not produced there.
