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2 years ago

What does it mean for a company to have a competitive advantage

1 answer:

3 0

When a company has a competitive advantage over others it means they have offered their customers a better value on their products. This could imply they lowered prices or added benefits/services to make higher prices more worthwhile.

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For 2012, Everyday Electronics reported $22.5 million on sales and $18 million of operating costs (including depreciation). The

sammy [17]

Answer:

$1,575,000

Explanation:

Net operating profit before taxes:

= Sales - operating costs

= $22,500,000 - $18,000,000

= $4,500,000

Net operating profit after taxes:

= Net operating profit before taxes - Taxes

= $4,500,000 - ($4,500,000 × 0.35)

= $4,500,000 - $1,575,000

= $2,925,000

Economic Value Added:

= Net Operating Profit After Taxes - (Operating Capital × Weighted Average Cost of Capital)

= $2,925,000 - (15,000,000 × 9%)

= $2,925,000 - $1,350,000

= $1,575,000

3 0

3 years ago

You are analyzing Jillian’s Jewelry (JJ) stock for a possible purchase. JJ just paid a dividend of $1.50 yesterday. You expect t

disa [49]

Answer:

A. D1 = 1.50*1.06 = 1.59

D2 = 1.59*1.06 = 1.69

D3 = 1.69*1.06 = 1.79

B. PV of D1=(1.50*1.06)/1.13^1=1.41

PV of D2=(1.50*1.06^2)/1.13^2=1.32

PV of D3=(1.50*1.06^3)/1.13^3=1.24

PV of all dividend = (1.50*1.06)/1.13^1 + (1.5*1.06^2)/1.13^2 + (1.5*1.06^3)/1.13^3

PV of all dividend = 1.59/1.13 + 1.6854/1.2769 + 1.786524/1.442897

PV of all dividend = 1.407079646 + 1.319915 + 1.238150748

PV of all dividend = 3.965145814288893

PV of all dividend = 3.97

C. PV = 27.05/(1+13%)^3

PV = 27.05/(1.13)^3

PV = 27.05/1.442897

PV = 18.74701

PV = 18.75

D. The most you should pay for it :

= (1.50*1.06)/1.13^1+(1.5*1.06^2)/1.13^2+(1.5*1.06^3)/1.13^3+27.05/1.13^3

=22.71

E. Value = (1.50*1.06)/(13%-6%)

Value = 1.59 / 7%

Value = 1.59 / 0.07

Value = 22.714286

Value =22.71

F. No, the value is not dependent on the holding period, you can see from above that the value of infinite time period estimated in E equals to the value calculated when there was 3 years holding period.

5 0

3 years ago

Headland Mining Company purchased land on February 1, 2020, at a cost of $1,169,500. It estimated that a total of 52,800 tons of

Nat2105 [25]

Answer:

1. $26 per unit

2. $183,040

3. $503,360

Explanation:

1. Computation of per unit mineral cost

Per unit mineral cost=(1,169,500+96,300+214,000-107,000)/52,800

Per unit mineral cost=1,372,800/52,800

Per unit mineral cost=$26 per unit

Therefore the Per unit mineral cost will be $26 per unit

2. Computation of Total materials cost

Total materials cost= (26,400 tons-19,360 tons)*26

Total materials cost=7,040*26

Total materials cost=$183,040

Therefore the Total materials cost will be $183,040

3. Calculation for the Total materials cost in Cost of goods sold

Total materials cost in Cost of goods sold= (19,360*26)

Total materials cost in Cost of goods sold =$503,360

Therefore the Total materials cost in Cost of goods sold will be $503,360

8 0

3 years ago

In the cycle of complete strategic planning, taking corrective action is a part of ________. A. implementation B. controlling C.

slavikrds [6]

Answer:

The correct answer is letter "B": controlling.

Explanation:

In strategic planning, controlling is the step in which the project is being carried out but monitoring is needed to track the progress of work. Controlling will allow the company to find out if it is ahead or behind the scheduled plan and if there are corrections to be made or simple adjustments.

8 0

3 years ago

ECON Good morning can someone answer this please asap

dusya [7]

The answer is B because both have access to capital that competitive markets wouldn’t give them because they dominate the market place and drive out competitors

5 0

2 years ago