Answer:
Explanation:
Base on the scenario been described in the question, we use the following method prepare and slove the given problem
Solution to the problem is in file attached below
Option c will be
Base on this, the Cost of goods sold: $ 934
Answer:
a. Calculate earnings per share, EPS, under each of the three economic scenarios (recession, normal, expansion) before any debt is issued. = 1.38667
b. Calculate the percentage changes in EPS when the economy expands or enters a recession. = -20.00%
c. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. = 1.56444
d. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. = -37.14%
Explanation:
In this scenario, Blue Tech Inc.'s failure can be best attributed to <u>"Time compression diseconomies."</u>
We accept time compression diseconomies where the snappier a firm builds up the asset, the higher the improvement cost. We demonstrate that time compression diseconomies normally offer ascent to asset heterogeneity and henceforth upper hand in that one firm builds up the asset quicker than the other. We evaluate the supportability of the upper hand, determine conditions
under which the asset is "incomparable" and demonstrate that firm benefits are nonmonotonic in the degree of time compression diseconomies.