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Leno4ka [110]
3 years ago
5

g "6. Financially, why would a company: (a) increase its dividend; (b) buy back some of its common stock shares; (c) pay down so

me of its debt; (d) increase its use of internal financing; (e) take the public firm private?"
Business
1 answer:
VikaD [51]3 years ago
5 0

Answer:

(a) increase its dividend;

dividends are increased for two reasons:

  1. the company has excess cash and it doesn't have any possible investments on hand
  2. the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.

(b) buy back some of its common stock shares;

  • the company has excess cash and the board and upper management believe that the stock price is too low.

(c) pay down some of its debt;

  • the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.

(d) increase its use of internal financing;

  • the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.

(e) take the public firm private

  • the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.

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The first mover that creates a revolutionary product is in a monopoly position.

Explanation:

First Mover is the big initiator of a new product, which gains a competitive 'first mover advantage' for being the pioneer of the idea in the market.

  • The first mover can be able to establish brand loyalty
  • Being a first mover doesn't guarantee instant success
  • The first mover can create switching costs for its customers to deter rivals.

The only apt statement is : The first mover that creates a revolutionary product is in a monopoly position. The first mover enters the market when there is no major supplier & the customer's demand is unmet. If it enables to leverage the potential huge unsatisfied market in a revolutionary way, it can be able to create unparalleled brand loyalty. And this can make it secure monopoly position in market

7 0
3 years ago
Producer surplus directly measures a. the well-being of buyers and sellers. b. the well-being of society as a whole. c. the well
marissa [1.9K]

Answer:

c. the well-being of sellers.

Explanation:

A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.

Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

On the other hand, consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Hence, an export subsidy will increase producer surplus.

In conclusion, producer surplus directly measures the well-being of sellers.

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2 years ago
Helen Weeks has worked for Bonne Consulting Group (BCG) as the executive secretary in the administrative department for nearly 1
elena55 [62]

Answer:

1.)  The internal controls which were missing are from the separation of responsibilities. There must have been in place an inner regulator were an individual works with advisers while alternative individual or unit take-care of the expense procedure, then somebody else allow expenses and then office should distribute the expenditures. There is an absence of inner controls as you can realize that the corporation amalgamated with a larger corporation and no one measured other accounts such as Jackson and company any longer.

2.)  With the lack of control, this offered Helen the chance to effect the fraud. With this presence said, she was talented to emulate sign receipts and spend the retailer’s expenditures. She were also the one in responsibility of office the initial and final of accounts. In short, she had several accountabilities that should have remained separated up better and had diverse individuals for the separations of the job. In addition, she needed a bank description from the corporation where she was capable to put the expenditures and pay individual expenditures.

3.)  The method this fraud might be noticed is the inspection squad can ask the bank for reports. They might also conference sellers. The accounting section should have ended sure they were doing the due diligence in dealers and corresponding the receipts with statements and expenditures.

5 0
2 years ago
You have decided to buy a used car. The dealer has offered you two options: (FV of S1, PV of $1, FVA of $1, and PVA of $1) (Use
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Answer:

1-a.

in order to determine the present value of option a we can look for the PVIFA (annuity factor) for 24% / 12 = 2% monthly rate and 25 payments.

PVIFA = 19.523

Present value of the 25 payments = $540 x 19.523 = $10,542.42

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Present value of final payment = $10,000 / (1 + 24%)²⁵/¹² = $6,388.10

PV = $16,930.52

Present value of option b = $16,638

1-b.

  • b. option b (lower present value)
5 0
2 years ago
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