Answer:
a. If Quisco develops the product in house, its earnings would fall by $500 × (1 – 35%) = $325 million. With no change to the number of shares outstanding, its EPS would decrease by to $0.75. (Assume the new product would not change this year’s revenues.)
b. If Quisco acquires the technology for $900 million worth of its stock, it will issue $900 / 18 = 50 million new shares. Since earnings without this transaction are $0.80 × 6.5 billion = $5.2 billion, its EPS with the purchase is .
c. Acquiring the technology would have a smaller impact on earnings. But this method is not cheaper. Developing it in house is less costly and provides an immediate tax benefit. The earnings impact is not a good measure of the expense. In addition, note that because the acquisition permanently increases the number of shares outstanding, it will reduce Quisco’s earnings per share in future years as well.
Explanation:
a. If Quisco develops the product in house, its earnings would fall by $500 × (1 – 35%) = $325 million. With no change to the number of shares outstanding, its EPS would decrease by to $0.75. (Assume the new product would not change this year’s revenues.)
b. If Quisco acquires the technology for $900 million worth of its stock, it will issue $900 / 18 = 50 million new shares. Since earnings without this transaction are $0.80 × 6.5 billion = $5.2 billion, its EPS with the purchase is .
c. Acquiring the technology would have a smaller impact on earnings. But this method is not cheaper. Developing it in house is less costly and provides an immediate tax benefit. The earnings impact is not a good measure of the expense. In addition, note that because the acquisition permanently increases the number of shares outstanding, it will reduce Quisco’s earnings per share in future years as well.
A focus group is a free-form meeting of 6–10 customers where a moderator solicits their opinions about a company's and its competitors' products.
<h3>What is the focus group?</h3>
A focus group is an interview with a small group of people that have similar features or contents, in addition to having a similar demographic. This is an informal gathering of six to ten customers, where a moderator asks them about the products of the company and its rivals.
Therefore, A focus group is an interview with a small group of people who have similar characteristics.
Learn more about the focus group, refer to:
brainly.com/question/13024118
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Answer:
The Net Present Value is - $20324
Explanation:
We can use our financial calculator to work out the NPV using the cashflows from the different periods and using the discount rate given. Which is 18%.
We have 11 periods. Starting off with CF 0. ( CF = cashflow ) We will work in Thousands to make it easier to read and compute. $ ' 000
CF 0 Machine Investment (750) Working Capital Investment (25) Total=(775)
CF 1 160 inflow
CF 2 160 inflow
CF 3 160 inflow
CF 4 160 inflow
CF 5 160 inflow
CF 6 160 inflow
CF 7 160 inflow
CF 8 160 inflow
CF 9 160 inflow
CF 10 160 inflow
CF 11 160 inflow. 35 salvage value from machine. Working capital 25. Total Cashlow = 220
We now use our financial calculator and input these amounts into the calculator.
We start of by entering the data and hitting ENT and do so for every Cash flow. At the end we press 2nd function CFI on our calculator. We then enter the discount rate of 18%. and press down button to get to NPV and then press COMP.
We get an answer of -20,32400407
We now need to put the amount into thousands. Thus = -20324,004
rounded to the nearest dollar we get - $ 20324
Answer: Sherry and Maria.
Explanation:
The correct answer is Overconfidence bias
Explanation:
Overconfidence bias is the result of an excessive and unrealistic estimation of one's skills, knowledge, ideas, etc even to the point the individual considers himself better than others or does not have an objective perception about himself. This type of bias can lead to negative consequences, for example, by overestimating his ability to pass a test a student might choose not to study at all and then fail the test. Moreover, this can be avoided by assessing realistically one's skills, judgments, etc. According to this, the type of bias that can be avoided is overconfidence bias.
