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3 years ago

Presweetened breakfast cereals would most likely be in the __________ stage of the product life cycle.

Business

2 answers:

Alexeev081 [22]3 years ago

7 0

Answer;

- Maturity

Explanation;

-Presweetened breakfast cereals would most likely be in the maturity stage of the product life cycle.

-The maturity stage of the product life cycle shows that sales will eventually peak and then slow down.

-At the maturity stage, the growth of sales has started to slow down, and the product has already reached widespread acceptance in the market, in relative terms.

-BARSIC- [3]3 years ago

6 0

A pre-sweetened breakfast cereal would most likely be in the DECLINE stage of the product life cycle.
At the decline stage of a product like cycle, the number of product sold usually drop significantly, because of this, manufacturers usually look for a mean of modifying their product so that the consumers will continue buying it. For instance, a cereal manufacturer may decide to add sugar to his product so that it will continue to be bought by the consumers.<span />

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How do you make a deposit form?

Anna11 [10]

A deposit is a sum of money placed or kept in a bank account, usually to gain interest

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4 years ago

The Signal Company has operating income (EBIT) before depreciation expense of $1,500,000. The company’s depreciation expense is

ANEK [815]

Answer:

A. Net income is $825,000; and Net cash flow is $1,225,000.

B. Net income is $750,000; and Net cash flow is $1,150,000.

C. Parts A net cash flow will equal part B net cash flow by deducting $75,000 difference, or Parts B net cash flow will equal part A net cash flow by addiing $75,000 difference.

Explanation:

The following are given:

Operating income (EBIT) before depreciation expense = $1,500,000

Depreciation expense = $400,000

Tax rate = 25%

We therefore proceed as follows:

A. If the company is 100% equity financed (zero debt), calculate its net income and net cash flow.

<u>Calculation of net income</u>

Income after depreciation but before tax = Operating income (EBIT) before depreciation expense - Depreciation expense = $1,500,000 - $400,000 = $1,100,000

Tax expense = Income after depreciation but before tax * Tax rate = $1,100,000 * 25% = $275,000

Net income = Income after depreciation but before tax - Tax expenses = $1,100,000 - $275,000 = $825,000

<u>Calculation of net cash flow</u>

Net cash flow = Net income + Depreciation expense = $825,000 - $400,000 = $1,225,000

B. If the company (instead) has $100,000 in annual interest expense, recalculate the net income and net cash flow.

<u>Calculation of net income</u>

Income after depreciation and interest expenses but before tax = Operating income (EBIT) before depreciation expense - Depreciation expense - Interest expense = $1,500,000 - $400,000 - $100,000 = $1,000,000

Tax expense = Income after depreciation and interest expense but before tax * Tax rate = $1,000,000 * 25% = $250,000

Net income = Income after depreciation and interest expense but before tax - Tax expenses = $1,000,000 - $250,000 = $750,000

<u>Calculation of net cash flow</u>

Net cash flow = Net income + Depreciation expenses = $750,000 + $400,000 = $1,150,000

C. Explain the difference in your answers to parts A & B – specifically, reconcile the change in net cash flow that occurred.

Difference in net income = Part A net income - Part B net income = $825,000 - $750,000 = $75,000

Difference in net cash flow = Part A net cash flow - Part B net cash flow = $1,225,000 - $1,150,000 = $75,000

Each of Part A net income and net cash flow is $75,000 greater than part B because part A is an 100% equity financed with the need to pay annual interest expense on debt of $100,000 like in Part B before calculating the Tax expense and the net income.

The $75,000 diffence is as a result of additional tax that Part A has to paid on $100,000. That is,

Additional tax expense in part A = Interest expense not paid in Part A * Tax rate = $100,000 * 25% = $25,000

Diffrenrence = Intererest expense not paid in part A - Additional tax expense = $100,000 - $25,000 = $75,000

For example, if there is no annual interest of $100,000 to be paid in part B, we can then reconcile by just addinf back the difference as follows:

Part B new net cash flow = Part B initial cash flow + Difference in net cash flow = $1,150,000 + $75,000 = $1,225,000 = Part A net cash flow

Also, if annual interest expense has to be paid in part A as a result of being now financed by debt, we will just deduct the difference as follows:

Part A new net cash flow = Part A initial cash flow - Difference in net cash flow = $1,225,000 - $75,000 = $1,150,000 = Part B initial net cash flow.

5 0

3 years ago

Desert Rose, Inc., a prominent consumer products firm, is debating whetherto convert its all-equity capital structure to one tha

Rina8888 [55]

Answer:

A. $450

B. $480

C. $540

D. The choice of capitl structure is irrelevant because the amount of $480 is the payoff amount based on the proposed capital structure with 30% debt, which indicate that investors cannot make use of home leverage to help create the capital structure as well as the payoffs they like.

Explanation:

a) Calculation to determine her cash flow under the current capital structure

First step is to calculate the earnings per share

EPS = $29,000 / 6,500 shares

EPS = $4.5

Now let calculate the cash flow under the current capital structure

Cash flow = $4.5*(100 shares)

Cash flow = $450

Therefore her cash flow under the current capital structure will be $450

b) Calculation to determine What will be the cash flow be under the proposed capital structure of the firm

First step is to calculate the earnings per share

First step is to calculate the MV of the firm

MV of the firm= $45(6,500)

MV of the firm= $292,500

Second step is to calculate the Debt

Debt = .30 x ($292,500)

Debt= $87,750

Third step is to calculate the Interest

Interest =8% x $87,750

Interest = $7,020

Fourth step is to calculate the repurchase shares

Repurchase shares =$87,750 / $45

Repurchase shares= 1,950

Fifth step is to calculate the Shrout new

Shrout new =6,500 - 1,950

Shrout new=4,550

Therefore, under the new capital structure,

EPS = (EBIT - Interest) / shares outstanding new

EPS = ($29,000 -$7,020) / 4,550shares

EPS =$21,980/4,550 shares

EPS =4.8

The shareholder will receive = $4.8*(100 shares) = $480

Therefore What will be the cash flow be under the proposed capital structure of the firm is $480

c) Calculation to Show how she could unlever her shares of stock to re-create the original structure.

Now she owns a total of 200 shares

Her payoff =[ (100 shares+100 shares) x $4.5 ]- [8% x $(100 shares x $45)]

Her payoff =(200shares×$4.5)-(8%×$4,500)

Her payoff =$900-$360

Her payoff= $540

Therefore Based on the above Calculation Allison did not successfully replicate the payoffs (b) under the proposed capital structure

d).Based on the above Calculation the choice of capitl structure is irrelevant because the amount of $480 is the payoff amount based on the proposed capital structure with 30% debt, which indicate that investors cannot make use of home leverage to help create the capital structure as well as the payoffs they like.

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3 years ago

In the _____ structure hierarchy, the headquarters relies on strategic controls to set rate-of-return targets and financial cont

Yuri [45]

In the competitive structure hierarchy, the headquarters relies on strategic controls to set rate-of-return targets and financial controls to monitor divisional performance relative to those targets.

<h3>What is competitive hierarchy?</h3>

The competitive hierarchy, which is an ordered ranking from competitive dominant to competitive subordinate based on either competitive effect or respons, may be used to rank plant species in natural habitats.
According to Maslow's hierarchy of needs, a theory of motivation, a person's conduct is determined by five categories of basic human needs. These needs include those for physiology, safety, love and belonging, esteem, and self-actualization.
Slow decision-making and communication. The typical organizational hierarchy has an inherent requirement that everything be reviewed and given the go-ahead at each level as it moves up and down the chain.

To learn more about Maslow's hierarchy refer,

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#SPJ4

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1 year ago

Jane is the manager of a local bank branch in College Station where he consumes bundles of two commodities x and y. Prices in Co

Sholpan [36]

Answer:

Remain the same

Explanation:

$U(x,y) = xy^{2}$ ......................................................... (1)

ICS = Income in College Station = $6,000

CSpx = Price of x in College Station = 1

CSpy = Price of y in College Station = 5

ID = Income in Dallas = ?

Dpx = Price of x in Dallas = 4

Dpy = Price of y in Dallas = 5

Step 1

Assume that Jane always divides his income in College Station equally into two, i.e. $3,000 each, to buy x and y, the quantities of x and y he can buy in College Station can be calculated by dividing the $3,000 by the prices of x and y. This is calculated as follows:

CSqx = Quantity of x in College Station = $3,000 ÷ 1

= 3,000 units

CSqy = Quantiy of y in College Station = 3,000 ÷ 5

= 600 units

Jane's utility in College Station can be calculated by amending equation (1) and substituting 3,000 units for x and 600 units for y as follows:

$CSU(CSqx,CSqy) = (CSqx.CSqy^{2})$

$CSU(3000,600) = (3000*600^{2})$

= 3,000 * 360,000

CSU(3000, 600) = 1,080,000,000 utils .......................... (2)

Step 2

Since Jane is guaranteed a salary in Dallas with which he would be able to buy exactly what he buys in College Station, this implies that the salary in Dallas will make him to be able to buy 3,000 units of good x and 600 units of good which he currently buys in College Station.

Since

CSpx = 1, which is less than Dpx = 4

But

CSpy = 5, is equal to Dpy = 5

We need to calculate how much his Income will increase in Dallas to be able to buy 3,000 units of good x in Dallas given that its price is $4. Therefore, his income will increase by multiplying $4 by 3000 units and deduct $3,000 he was spending in College Station on x as follows:

IID = Increase in Income in Dallas = (3,000 * $4) - $3,000

= $12,000 - $3,000

= $9,000

Therefore, ID (Income in Dallas) is the addition of IDD and ICS (Income in College Station) calculated as:

ID = IID + ICS

= $9,000 + $6,000

= $15,000

Conclusion

With the ID of $15,000, Jane will be spending $12,000 to buy 3,000 units of good x in Dallas and continue to spend $3,000 to buy 600 units of good y in Dallas.

This will make Jan's utility in Dallas (DU) to be equal to 1,080,000,000 utils as obtained in equation (2) above.

Therefore, Jane's utility will remain the same based on the tangency rule which states that a consumer will choose a combination of two goods at which an indifference curve is tangent to the budget line, i.e. his income.

5 0

3 years ago