Answer:
Its earnings per share will decrease.
Its return on equity will go down.
Its equity multiplier will go down.
Explanation:
Since net income remains the same, earnings per share will decrease. This happens because there will be more stocks outstanding (the denominator in the EPS formula), so the result will be lower.
Return on equity will also decrease, since net income will remain the same while equity increases (same logic as EPS).
Unless this company is 100% financed through equity, it will have some debt (liabilities). The equity multiplier = total assets / total equity. E.g. total assets increase from $20 to $22 million, and total equity increases from $30 to $32 million.
Original equity multiplier = $40 / $30 = 1.333
Equity multiplier after issuing more stocks = $42 / $32 = 1.3125
C. Its equity multiplier will go down.
D. Its current ratio will go down.
E. Its quick ratio will go down.
Answer:
It must reduce the firm's costs below that of its competitors while offering superior value.
Explanation:
Cost Leadership is the mechanism of establishing a competitive advantage by having the lowest cost of operation in the industry. This strategy is especially beneficial in a market where the price is an important factor.
Cost Leadership strategy: Increasing profits by reducing costs, while charging industry-average prices. Increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs.
As opposed to offering superior products or brand appeal, a cost-leadership company's greatest value to consumers tends to be low pricing. Therefore, if a competitor can reduce costs more, it will pose a substantial threat to a company's consumer base.
Answer:
b. a discount.
Explanation:
A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called __a discount._______.
Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.
<h3>Amount to be reported as revenue</h3>
First step
Percentage ownership=35,000/140,000 shares ×100
Percentage ownership=25%.
Second step
Using equity method
Revenue from investment=25%× $320,000
Revenue from investment=$80,000
Therefore Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.
Learn more about revenue here:brainly.com/question/24280609
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Answer:
Option A is correct one.
Competing
Explanation:
When one person seeks to satisfy his or her own interests regardless of the impact on the other parties to the conflict, that person is using the conflict-handling intention of <u>Competing.</u>
When one person seeks to satisfy his or her interests regardless of the impact on the other parties to the conflict, he is competing. The competition involves authoritative and assertive behaviours.
