Answer:
C. backward vertical integration
Explanation:
Vertical integration is one in which the supply chain of a clothe producing company is owned by the
Backward integration is a type of vertical integration in which a firms starts to fill in the role it once designated to another in the manufacturing of its product. Backward vertical integration would see a company buying another to fulfill its needs as regarding production.
From the above question, it can be seen that due to the inability of the china firm to meet up with Neon Electronics Inc; it started to produce the touchscreens needed for the tablet computers.
Cheers.
Answer:
6,250 units
Explanation:
The computation of the number of units that should be sold and produced in order to break even is shown below:
as we know that
Break even point = Fixed cost ÷Contribution margin per unit
Here
Contribution margin per unit = Selling price - Variable costs
= $28 - $12
= $16
So, the breakeven is
= $100,000 ÷ $16
= 6,250 units
The broad field of Microeconomics would most likely study how all consumers respond to a hike in cigarette taxes.
<h3>What is Microeconomics?</h3>
Microeconomics is a branch of social science that focuses on the effects of incentives and choices, particularly how they affect how resources are used and distributed.
Microeconomics explains how and why different things have varying values, how people and firms conduct themselves and profit from efficient production and trading, and how people can work together and coordinate their efforts to the greatest extent possible. Typically, microeconomics offers a more thorough and in-depth understanding than macroeconomics.
Microeconomics is the study of how people make decisions in response to changes in incentives, pricing, resources, and/or production processes. People are frequently categorized into microeconomic subgroups as customers, sellers, and business owners.
These organizations use money and interest rates as a price mechanism to coordinate the supply and demand for resources.
To know more about Microeconomics, visit:
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Answer:
the three next cash flows are missing, so I looked for similar questions and found:
- FCF1 = $20 million
- FCF2 = $25 million
- FCF3 = $30 million
in order to determine the company's value, we must first determine the horizon value in 3 years:
horizon value in year 3 = [$30 million x (1 + 5%)] / (11% - 5%) = $31.50 million / 6% = $525 million
the current value of the firm = $20/1.11 + $25/1.11² + $30/1.11² + $525/1.11³ = $18.02 + $20.29 + $21.94 + $383.88 = $444.13 million
the value of equity = $444.13 - $112.60 = $331.53 million
price per stock = $331.53 million / 25 million = $13.26 per stock