All categories

3 years ago

When a market’s annual growth rate falls below 10 percent, a star will become a dog if it still has the largest market share?

1 answer:

3 0

That statement is false

according to IX Boston Consulting Group Model, a star will became a cash cow if it still has the largest market share under this circumstances.
This means that the company still making enough cash for its employees and still enjoy a pretty high-profit margin.

You might be interested in

Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,900 shares of its own common st

Nikitich [7]

Answer: See explanation

Explanation:

The journal entry to record the transaction for Sherman systems will be:

Oct-11

Debit Treasury Stock (5,900 × $34) =

$200,600

Credit Cash = $200,600

(To record repurchase of 5900 own shares)

Nov-01

Debit Cash (1,225 × $40) = $49,000

Credit Treasury stock (1,225 × $34) = $41,650

Credit Paid in capital-Treasury Stock = $7,350

(To record sale 1225 shares from treasury stock)

Nov-25

Debit Cash (5,900-1,225) × $29) = $135,575

Debit Paid in capital-Treasury Stock = $7,350

Debit Retained earnings = $16,025

Credit Treasury stock (5,900-1,225) × $34) = $158,950

(To record sale balance from treasury stock)

7 0

3 years ago

Consider the capital asset pricing model. The market degree of risk aversion, A, is 3. The risk premium is 2.25%. If the risk-fr

inna [77]

Answer:

SO expected return on Mkt Portfolio Rm = 10.75%

Explanation:

market degree of risk aversion A = 3

Var = 0.0225 = SD^2

Rf = 4%

What is expected return on Mkt Portfolio ie Rm??

According to CAPM, Rm-Rf = A*SD^2

where SD is Std Dev (Recall SD^2 = Variance)

A is market degree of risk aversion

So we have Rm-4% = 3*0.0225

ie Rm = 4% + 3*0.0225 = 10.75%

SO expected return on Mkt Portfolio Rm = 10.75%

3 0

3 years ago

A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capita

kondaur [170]

Answer: The statement is TRUE.

Financial intermediaries are those people or companies that offer financial services to the investor without the latter having to contact the issuer of the financial instrument.

Its function is that of intermediation between people who save and people who need financing, that is, between buyers and sellers.

4 0

3 years ago

You borrow $12,600 to buy a car. The terms of the loan call for monthly payments for five years at an interest rate of 4.65 perc

UkoKoshka [18]

Answer:

$627

Explanation:

To find the answer, we use the present value of an annuity formula:

$P = A[1-(1+i)^{-n} /i]$

Where:

P = Present value of the investment
A = Value of the annuiry
i = interest rate
n = number of compounding periods

Now, we plug the amounts into the formula:

$12,600 = A[1-(1+0.0465)^{-60} /0.0465\\]$

12,600 = A (20.09870355)

A = 12,600/20.09870355

A = 627

Thus, the value of the monthly payments is $627

4 0

3 years ago

A company received a bank statement with a balance of $ 6 comma 300. Reconciling items included a bookkeeper error of $ 400long

larisa [96]

Answer:

Bank adjusted balance 5,720

Explanation:

6,300

-840 outstanding check

+260 deposit in ransit

5,720 bank adjustment balance

Notes:

the bookkepper error needs to be done on books cash account

the service charge are included in the bank statemnt, is at adjustment to the book cash

the interest revenue is also 22 an adjustment for the book cash account

6 0

3 years ago