Answer:
C
Explanation:
Based on the scenario being described within the question it can be said that FL Systems Inc. will find it harder than Oryxo Systems Inc. to attain competitive advantage. This is mainly due to the fact that FL Systems Inc. has a large percentage of their money locked in intangible assets. These are assets that cannot be touched or physically used by the customers which makes it very difficult for customers to see the potential value which ultimately hurts their competitive advantage.
Answer:
$37.79
Explanation:
The computation of the stock price is shown below:
Data given in the question
Next year dividend = $3.25
Growth rate = 3.5%
Required rate of return = 12.1%
So, the stock price is
= Next year dividend ÷ (Required rate of return - growth rate)
= $3.25 ÷ (12.1% - 3.5%)
= $3.25 ÷ 8.6%
= $37.79
We simply apply the above formula to find out the stock price
Answer:
$146,000
Explanation:
Net income $120,000
Add: depreciation expenses $6,000
Increase Accounts Receivable 10,000
Decrease Accounts Payable 15,000
Less $5,000
(increase Accounts Receivable 10,000-
decrease Accounts Payable 15,000)
Net cash $146,000
Therefore the amount that Liberty should report as net cash provided by operating activities in its statement of cash flows for the year will be $146,000
Answer:
there is persistent excess capacity.
Explanation:
Pressures for cost reduction are intense in industries where there is persistent excess capacity.
Generally, when the level of supply is relatively higher than the level of demand at a specific period of time, the price of goods and services are usually expected to fall.
<em>In this scenario, there is persistent excess capacity in the industry and as such in order to be able to keep up with sales, the company will have to reduce its selling price. This will enable the company to have competitive advantage over its rivals in the same industry. </em>
