Answer:
They offer shares and release their company on the stock market to be publicly traded.
Explanation:
Answer: THREAT OF SUBSTITUTE PRODUCTS.
Explanation:Porter's model was developed by a Harvard business school Lecturer known as Michael E. Porter in 1979. Michael E. Porter developed a Five Forces model that identifies and analyzes five competitive forces that shape every industry, and determines an industry's weaknesses and strengths.
The five competitive forces are as follows;
COMPETITIVE RIVALRY which determines the strength and number of your competitors.
SUPPLIER POWER which determines the uniqueness of the supplies given to you by your suppliers and the number of suppliers you have etc.
BUYER POWER which evaluates how many buyers you have,how easy it is for them to buy your products etc.
THREAT OF SUBSTITUTION which evaluates how easy it is for your buyers to buy another substitutes to your product etc.
THREAT OF NEW ENTRY which evaluates the ability or easy access of new products to penetrate the market,how well you are to maintain your strength etc.
Answer:
Transaction Assets Liabilities Stockholders' Equity
Issue common stock Increase NE Increase
Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease
Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE
Pay cash dividend Decrease Decrease NE
100% stock dividend NE NE NE
2-for-1 stock split NE NE NE
When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.
When cash dividends are declared, they become a liability that is owed to equity holders.
When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.
100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.
Answer:
Expected Net Cash Flow = $3.8 million
Net Present Value (NPV) = $1.0492 million
Explanation:
Given Cash outflow = $10 million
Provided cash inflows as follows:
Particulars Good condition Moderate condition Bad Condition
Probability 30% 40% 30%
Cash flow $9 million $4 million $1 million
Average expected cash flow each year = ($9 million X 30 %) + ($4 million X 40%) + ($1 million X 30%) = $2.7 million + $1.6 million + $0.3 million = $4.6 million
Three year expected cash flow = ($4.6 million each year X 3) - $10 million = $13.8 million - $10 million = $3.8 million
While calculating NPV we will use Present Value Annuity Factor (PVAF) @12% for 3 years = 
NPV = PV of inflows - PV of Outflows = $4.6 million X 2.402 - $10 million = $11.0492 million - $10 million = $1.0492 million
Expected Net Cash Flow = $3.8 million
Net Present Value (NPV) = $1.0492 million
<span>Hours of labor or number of workers are common ways of measuring a company's_______?
</span><span>
Productivity
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