True Two industries that have the same four-firm concentration ratio can have significantly different Herfindahl indexes.
What is Herfindahl indexes?
The Herfindahl-Hirschman Index (HHI), a popular indicator of market concentration, is frequently used before to and after merger and acquisition (M&A) deals to assess market competitiveness.
The index gauges a company's size in relation to the size of the industry it operates in as well as its level of competition. The market share of each company that competes in a market is squared, and the resulting values are then added to determine the HHI. Its values can range from almost 0 to 10,000, with lower numbers denoting a less crowded market.
A widely used indicator of market concentration is the HHI. It is determined by squaring the market share of each company that is engaged in market competition and then adding the resulting figures.
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Answer:
the net income reported by Waterway Industries for the year was $299,000
Explanation:
The computation of the net income reported is as follows:
As we know that
Net income = Revenue - expenses
= $626,000 - $327,000
= $299,000
hence, the net income reported by Waterway Industries for the year was $299,000
The same should be considered
Answer:
2017 2016 2015
CURRENT RATIO 1,88 2,52 2,87
ACID-TEST RATIO 0,93 1,30 1,72
Explanation:
CURRENT RATIO
Total Current Assets
====================
Total Current Liabilities
ACID-TEST RATIO
Total Current Assets - (Merchandise Inventory + Prepaid Expenses)
============================================================
Total Current Liabilities
Answer:
Yes, the FTC would ignore the merger and allow it to go through.
Explanation:
here are the options to the question ;
O No, the FTC would probably challenge the merger
O Maybe. The FTC would scrutinize the merger and make a case-by-case decislon.
Yes, the FTC would ignore the merger and allow it to go through.
HHI is used to calculate market power.
if the HHI index is less than 1000 post merger, the merger would be allowed to go through.
If the HHI index is between 1000 - 1800 post merger and the change in HHI is more than 100 after the merger, The FTC would scrutinize the merger and make a case-by-case decislon.
If the HHI index is more than 1800 post merger and the change in HHI is more than or equal to 50, he FTC would probably challenge the merger
Answer:
(a) 14%
(b) $24 per share
Explanation:
Given that,
Dividend paid per share = $3
Growth rate of dividend = 4%
(a) Expected rate of return:
= [D1 ÷ Price ] + g
= [3 ÷ 30 ] + 0.04
= 0.10 + 0.04
= 0.14 or 14%
Therefore, the expected rate of return is 14%.
(b) Stock price:
= D1 ÷ (cost - growth)
= 3 ÷ (0.165 - 0.04)
= 3 ÷ 0.125
= $24 per share
Therefore, the stock price is $24 per share.