Answer:
16.3%
Explanation:
$40 was put at the beginning of the year for an investment
The investment grows by 5%
= 5/100
= 0.05
The dividend is $4.50
The first step is to calculate the dividend yield
= $4.50/40
= 0.1125
Therefore, the HPR can be calculated as follows
= 0.1125+0.05
= 0.163×100
= 16.3%
Hence the HPR was 16.3%
Answer:
<em>(d) to focus on changes in financial statement numbers</em>
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Explanation:
- <em>Ratio Analysis </em>beautifully captures the analysis of financials analysis of the company. The levels of leverage, liquidity and costs coverage etc. are all highlighted by ratio analysis. The crucial ratios like the Interest Coverage ratio, Debt Equity ratio, Debt ratio and Current Ratio etc. can all be compared of different companies for a better analysis.
- <em>Horizontal analysis </em>highlights the key changes in the financial numbers of the current quarter/year with respect to the previous quarter /year respectively like the change in sales, gross profit, operating profit and operating expenses etc. Thus, the relative rate of change in key numbers of companies can be compared.
- <em>Cash Flow Statement analysis</em> focuses on the cash flows earned by the business from operating (operational) activities, investment activities (fixed assets cash flows and investing receipts) and cash flows from financing activities (long term finance sources transactions and finance payments of dividend and interest). Thereby, the net increase/decrease in cash flows of companies can be studied for comparison between them.
- <em>The focus on changes in the financial statement numbers </em>is the least effective method out of all the options. All the analysis of the key financial measures of companies whether in absolute or relative form are fully captured by the options (a), (b) & (c) given in the problem as indicated above.
Five Industries as being highly competitive and their barriers to entry.Farming and farm supplies — the barriers are the cost of land and machinery or in the case of chemical applications, licensing.
Consumer electronics – the barriers are brand loyalty or control of essential factors of production. Dry cleaners – Barriers are the availability of suitable locations (near residential areas and properly zoned) and the availability of equipment, in addition to high start-up costs.
Internet Service Providers – the barriers of the internet service providers are the knowledge of running a server, cost of a dedicated trunk line for access to the telephone network and the cost of purchasing a computer server.
Taxi service – the barriers include the need for taxi medallions, which must be acquired through an expensive legal proceeding or purchased from existing companies.
That companies gain a competitive advantage by giving customers focus, cost leadership, and differentiation
<h3>
What is competitive advantage?</h3>
A firm seeks a competitive advantage when it aims to surpass its rivals in terms of profitability. An organization must be able to communicate to its chosen target market that it has a higher comparative or differential value than its rivals in order to establish and retain a competitive advantage. For instance, a business is likely to have a competitive advantage if it advertises a product at a lower price than a similar product from a rival. The same holds true if the marketed item is more expensive but has special characteristics that buyers are ready to pay for.
The SWOT (Strengths, Weaknesses, Opportunities, and Threats) analytical technique is credited to Albert Humphrey at the Stanford Research Institute. Porter's Five Forces is an alternative model that helps businesses understand their position within a competitive landscape.