The answer of the above question is “product”.
Answer:
When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:
D. Lowest incremental effect
Explanation:
Diluted EPS:
Diluted EPS is known as diluted earning per share which is a method that is used to measure the determine the earning of business per share when all the convertible securities are used.
- Convertible securities are the simply those securities which include, warrants, convertible bonds etc.
The formula for calculating diluted EPS is as follow:
Diluted EPS = (Net income - Preferred dividend) / (convertible securities + Outstanding shares)
- So, the option d is correct as in the computation of diluted EPS, lowest incremental effect comes first.
Answer: a. perform one or more activities in the value chain at the same quality level as its competitors.
Note: But it must be at a lower cost than the competitors.
d. perform its value chain activities at a higher quality level than one of its competitors.
Note: It must be at no greater cost than the competitors.
What is Sustainable Competitive Advantage?
They are a company's abilities, culture, assets, and attributes that places them at an advantage or gives them a cutting edge over their competitors, such advantage(s) are difficult to duplicate by another company.
Types of sustainable competitive advantage.
• Low pricing: This is the ability of a company to provide goods or services at a low cost compared to their competitors, this ability could be an important competitive advantage.
• Market Power: This talks about the sole ability of a company to increase price without experiencing a loss in the market share, this happens when there is high barrier to entry in a market.
Other examples are ; powerful brands, outstanding management, product differentiation, etc.
Explanation:
Answer: 5.54%
Explanation:
The margin of safety as a percent of sales will be calculated as:
= (Expected sales - Break even sales) / Expected sales
= ($352000 - $332500) / $352000
= $19500 / $352000
= 0.0554
= 5.54%
Number of firms -one
Nature of product-a unique product with no close substitute
Entry- completely blocked
Information - complete
Collusion between sellers - irrelevant
Firm's control over the price of product - considerable , but limited by market demand and goal of profit maximisation
Demand curve of the firm's product - equals market demand curve : downward sloping
Long-run economic profit - can be positive
