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geniusboy [140]
4 years ago
12

Which of the following is most likely the best rationale for unrelated diversification? A. risk reduction by spreading the compa

ny's investments over a set of diverse industries B. managerial motives including the prospects for higher compensation C. stabilize earnings, i.e. market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses D. expectations for rapid or continuous growth E. growth by acquisition of an undervalued company at a bargain price can deliver enhanced shareholder value
Business
1 answer:
xxTIMURxx [149]4 years ago
4 0

Answer:

Option A            

Explanation:

In simple words, Unrelated diversification relates to the type of diversification where new or incompatible consumer products are introduced and new businesses enter. For eg, when the shoe manufacturer joins the garment fabrication business.

Linked diversification is more important than unrelated since the organisation shares properties, expertise, or abilities. Yet other profitable companies tend to purchase unrelated enterprises, along with Tyco as well as GE. Thus, from the above we can conclude that the correct option is A.  

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Four years ago, Bling Diamond, Inc., paid a dividend of $1.73 per share. The firm paid a dividend of $2.36 per share yesterday.
Valentin [98]

Answer:

$2.90 approx

Explanation:

The computation of firm’s cash dividend be in seven years

First we need to find out the

Growth Rate = (Last Dividend ÷ Dividend 4 years ago)^(1 ÷ 4) - 1

= ($2.36 ÷ $1.73)^(1 ÷ 4) - 1

= $1.36^0.35 - 1

=  1.113624092  - 1

= 0.113624092

= 11.36%

Now we calculate for 5 years

Dividend in 5 years = $2.36 × 1.113624092

= $2.628

and Dividend in 7 Years = Dividend in 5 years × (1 + 5%)^2

= $2.628 × 1.05^2

= $2.628 × 1.1025

= $2.90 approx

3 0
4 years ago
Assume the demand function for basketballs is given by QD = 150 −3P + 0.1I, where P = price of a basketball, and I = average inc
TEA [102]

Answer: (1) Equilibrium price = 60 and Equilibrium quantity = 120, when I = $1500.

(2)  Equilibrium price = 54 and Equilibrium quantity = 108, when I = $1200.

Explanation:

(1) When Average income (I) = $1500

At equilibrium, QD = QS

150 - 3p + 0.1I = 2p

150 - 3p + 0.1 × 1500 = 2p

5p = 300

p = \frac{300}{5}

p = 60

q = 2p ⇒ 2 × 60 = 120

Hence, p and q are equilibrium price and equilibrium quantity, respectively.

(2) If 20% income tax is introduced then Average income (I) = $1500 - 20% of  $1500 ⇒ $1500 - $300 = $1200

At equilibrium, QD = QS

150 - 3p + 0.1I = 2p

150 - 3p + 0.1 × 1200 = 2p

5p = 270

p = \frac{270}{5}

p = 54

q = 2p ⇒ 2 × 54 = 108

Hence, p and q are equilibrium price and equilibrium quantity, respectively.

4 0
3 years ago
Marketing school provides in-depth training in​
sladkih [1.3K]
Marketing training should ideally address your organizational challenges, for example through company-specific projects or the development of your own action plan.
4 0
3 years ago
A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a f
olganol [36]

Answer: Please refer to the explanation section

Explanation:

The question is incomplete, the statement which we much choose from are not given in the question we will explain the question and provide a clear solution to make it easier for the student to single out a false statement.

Property acquisition was financed by two mortgage Bonds, First Mortgage Bond was $60 000 and the second mortgage bonds was $23 500. Ignoring interest rate we can assume that the Value of the Property is $83500 ($60 000 + $23 500).

Property was sold for $88000, There is a profit on sale of the property. Profit earned amounted to $4500 ($88000 - $83500). The profit on sale of property ($4500) will reported on the income statement. The property Value will be derecognized from long term assets in the the balance sheet statement.

The profits on sale of the property will form part of the net income for the year. Net income is distributed to shareholders in the form of dividends. We can therefore conclude that a portion of Profits on sale of property, if not all will be distributed to the share holders as dividends

7 0
3 years ago
Read 2 more answers
Which of the following is interest meant to do?
schepotkina [342]

Answer;

bring profit the lender

Explanation;

-Interest is the charge for the privilege of borrowing money, typically expressed as annual percentage rate. To the borrower it is the cost of renting money, to the lender the income from lending it.

-The rate of interest is usually expressed as an annual percentage of the principal, and is influenced by the money supply, fiscal policy, amount being borrowed, creditworthiness of the borrower, and rate of inflation.  

-Interests influence the cost of borrowing, the return on savings, and are an important component of the total return of many investments.



5 0
3 years ago
Read 2 more answers
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