In order to implement a cost-leadership strategy effectively, a <span>functional and mechanistic</span> structure is preferred in a firm. The cost leadership strategy in business was developed by Michael Porter regarding competitive advantage. The ultimate goal is to achieve the lowest cost of manufacturing and operating your product within the industry.
Answer:
$50,000
Explanation:
The theatre should record the securities at the date of donation for $50,000 because for donated securities, they are usually recorded at the fair value upon receipt. Also, for contribution - which is a gift, usually measured at the fair value when received to the not for profit organization , same applies to securities.
Answer:
(a) $34.61; 11.54
(b) $32.81; 10.94
Explanation:
(a) Stock Price = D ÷ (Ke – G)
Where,
D is dividend next year,
Ke is required rate of return on equity
G is growth rate
Growth rate = ROE × plow-back ratio
= 0.12 × 0.40
= 0.048 or 4.8%
Dividend = Current EPS × (1 - plow back ratio)
= $3 × 0.6
= $1.8
Stock Price:
= $1.8 ÷ (0.10 - 0.048)
= $34.61
P/E Ratio = Stock Price ÷ EPS
= $34.61 ÷ $3
= 11.54
(b) New growth rate = 0.12 × 0.30
= 0.036 or 3.6%
Dividend = Current EPS × (1 - plow back ratio)
= $3 × 0.7
= $2.1
Stock Price = $2.1 ÷ (0.10 - 0.036)
= $32.81
P/E Ratio = Stock Price ÷ EPS
= $32.81 ÷ $3
= 10.94
Answer: Option E
Explanation: In simple words, sales promotion refers to the process under which an organisation tries to persuade customer to buy its product by using several marketing and advertising strategies.
Direct marketing refers to the process in which a company performs its marketing strategy without the help of any middleman.
Therefore, we can conclude that option E is correct as the company is sending an email direct from its office so it is direct marketing and the objective of mail is to promote sales which depicts sales promotion.
Answer:
A. total assets of the company remain constant
Explanation:
Mainly there are three stages to make the final product. These are
1. Raw material
2. Work in progress
3. Finished goods
When the product is finished in all respects. It is ready for sale.
According to the given situation, when work in progress inventory is transferred to the finished goods, the inventory part or we can say the asset part remains constant. As a raw material, work in progress, and the finished goods are the inventory.
The work in progress balance will get reduced by the same amount as finished goods increased.