All categories

3 years ago

It becomes particularly urgent for a company to consider diversification when there are

1 answer:

6 0

The company could consider diversifying when sales are beginning to slow and there is a way to leverage some of the business's core competencies in other areas that would be more competitive. In addition, this could allow the business to not worry about being "all-in" in a certain area, where that area's success or failure could lead to the entire business thriving or failing. By diversifying itself, the business can also lower production and sales costs or increase overall sales.

You might be interested in

Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000, for 50 shares in Crow C

barxatty [35]

Answer: The correct answer is "c.Crow will have a business deduction of $120,000 for the value of the services Mary will render.".

Explanation: With respect to the transfers: Crow will have a business deduction of $120,000 for the value of the services Mary will render.

This is calculated by the difference between the value of the property contributed by Earl $1 600 000 and the value of the property contributed by Mary $1 480 000.

1 600 000 - 1 480 000 = $ 120 000.

4 0

4 years ago

To prevent loss of work on the computer,it is essential to

tia_tia [17]

Answer:

Save data

Explanation:

4 0

3 years ago

Read 2 more answers

Puffy Shirt Inc's common stock has a beta of 1.2. If the risk free rate of return is expected to be 4% and the market risk premi

OleMash [197]

Answer:

The required rate of return is 17.2%

Explanation:

To calculate the required rate of return, we will use the CAPM or Capital asset pricing model. The formula for the required rate of return (r) is:

r = rRF + Beta * (rpM)

Where,

rRF is the risk free rate.
Beta is the measure of the risk
rpM is the market risk premium

Required rate of return for Puffy Shirt Inc's stock is:

r = 0.04 + 1.2 * 0.11

r = 0.172 or 17.2%

7 0

4 years ago

A company can act ethically toward employees and meet their expectations by A. improving their products over time and providing

frutty [35]

Answer:

D. creating an occupational structure that fairly and equitably rewards organization members for their contributions

Explanation:

When the company acts ethically for the employees and meeting their expectations so this could be possible when the organization structure is properly developed that represent contribution made by the members of the organization is quite fair and equitable and for the same the rewards is also provided so that they feels motivated

Hence, the option d is correct

4 0

3 years ago

Your local bank is offering a new type of retirement savings account. An initial deposit is made to the account when it is opene

Sergeu [11.5K]

Answer:

Final value= $287,663.01

Explanation:

Giving the following information:

If the account balance is less than or equal to $20,000, interest for the next annual period is 7% compounded annually.

If the account balance is greater than $20,000 but less than or equal to $40,000, interest for the next annual period is 10%/year compounded quarterly.

If the account balance is greater than $40,000, interest for the next annual period is 12%/year compounded monthly.

You decide to open an account under these terms today with $11,600.

We need to calculate the time required for the initial investment to reach each limit until the 27 years have passed.

We will use the following formula:

n= ln(FV/PV) / ln(1+i)

First, the number of years to reach $20,000

n= ln(20,000/11,600) / ln(1+0.07)

n= 8.05 years

In the firsts 9 years the account will be invested at a 7% interest rate.

FV= PV*(1+i)^n

FV= 11,600*(1.07)^9

FV= $21,326.13

Now, we need to calculate the number of quarters required to reach $40,000.

i= 0.10/4= 0.025

n= ln(40,000/21,326.13) / ln(1.025)

n= 25.4 quarters

n= 7 years= 28 quarters

FV= 21,326.13*(1.025^28)

FV= $42,577.51

Finally, the 16 years left at a 12% interest rate compounded monthly.

n= 16*12= 192

i= 0.12/12= 0.01

FV= 42,577.51*(1.01^192)

FV= $287,663.01

5 0

3 years ago