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shtirl [24]
3 years ago
14

The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value i

nvolves determining whether A. E) there are attractive strategic fits between the value chains of the company's present businesses and the value chain of the new business it is considering entering. B. B) the potential diversification move will boost the company's competitive advantage in its existing business. C. A) conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es). D. D) key success factors in the target industry are attractive. E. C) shareholders will view the contemplated diversification move as attractive.
Business
1 answer:
vodka [1.7K]3 years ago
4 0

Answer:

<u>A) conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).</u>

<u>Explanation</u>:

Remember, the key word here is about whether diversification into a particular industry would likely increase shareholders value.

Thus, any company wanting to test this out would consider whether conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).

This option is better because improved profits implies better shareholder value.

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Where could student researchers and/or student subjects find additional resources regarding the irb approval process?
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3 years ago
Last year vaughn corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. the firm's tota
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4 0
3 years ago
In the _____ form of e-commerce, firms want to develop buyer loyalty and repeat business but seldom develop a close working rela
Molodets [167]

Answer: business to consumer

Explanation:

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4 0
3 years ago
If you received a constant annual rate of return of 7% on an investment of $10,000, how many years will it take before you have
DaniilM [7]

Answer:

It will take 10 years to have $20,000 on investment of $10,000.

Explanation:

Annual Rate of return = r = 7%

Compounded Value / Future Value = FV = $20,000

Investment Value / Present Value = PV = $10,000

Use Future value formula to solve this question:

Future Value = Present Value x ( 1 + Number of Year )^Number of year

FV = PV x ( 1 + r )^{n}

$20,000 = $10,000 x ( 1 + 0.07 )^{n}

\frac{20,000}{10,000} = ( 1 + 0.07 )^{n}

$2 = 1 .07 ^{n

Log 2 = n log 1.07

0.30 = n x 0.03

n = \frac{0.30}{0.03}

n = 10.00

n = 10 year (rounded off to nearest year )

It will take 10 years to have $20,000 on investment of $10,000.

8 0
3 years ago
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