Answer:
Fly Corporation
The stock price will not be affected by the accounting change.
Explanation:
This opinion is based on the assumption that the capital markets are efficient. Therefore, the stock's market price will reflect all available and relevant information. Since all the necessary information is already incorporated into the stock price, the CEO of Fly Corporation cannot beat the market by the change in accounting method, and the stock price will not be undervalued or overvalued. Moreover, the change in accounting method only shifts the timing for reporting income.
Smashburger Restaurant Concept is under the stage of GROWTH in product life cycle. They already have 370 corporate and franchise outlet all over the world which operates in 9 different countries. It is the stage wherein they are still expanding and the income is still growing.
Answer: Craft new initiatives to more strongly differentiate the various products/services in each of the company's businesses and thereby enhance the competitive power and reputation of the company's brand name
Explanation:
Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, the one that isn't one of the main strategy options that the company can pursue is crafting new initiatives to more strongly differentiate the various products or services in each of the company's businesses and thereby enhance the competitive power and reputation of the company's brand name.
This is because some strategies adjustment are needed and enhancing its competitive power isn't the right thing to do.
Answer:
$43 million
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.
Peridot's Net cash outflows from investing activities (in millions)
= -$38 + $96 + $71 - $86
= $43
The gain from the disposal of land will be deducted from the net income under the cash flows from operating activities while the requisition of own shares is a financing activity.
Answer:
Option d is the right one.
Explanation:
- Marginal research or analysis to optimize future gains as a decision-making method. In comparison to the expenses incurred by this same behavior, it calculates added benefits. The illustration described demonstrates that the marginal gain is smaller than that of the marginal cost.
- This involves purchasing goods until the marginal gain is equal to the marginal cost.
The other options aren't sufficient for the scenario provided. But that will be the best alternative for option d.
