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Dmitrij [34]
1 year ago
13

George Weston Limited, a Canadian food processing and distribution company, is one of the world's largest producers of breads. R

efer to the scenario. The company owns the Wonder bread brand. When Weston introduced whole grain white bread, which gives kids the bread texture and colour they recognize and love and parents the vitamins they want for their children, what was it an example of?
Business
1 answer:
babunello [35]1 year ago
4 0

Answer:

<u> c. Mix width</u>

Explanation:

Product mix width can be defined as the total number of product lines that a company has to sell.

As an example, we can mention a cosmetics company that manufactures four different types of products, such as jewelry, perfumes, clothes and makeup.

Companies use the strategy of having different product lines because they add benefits such as attracting more consumers and gaining a larger share of the market.

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Dana has a portfolio of 8 securities, each with a market value of $5,000. The current beta of the portfolio is 1.28 and the beta
allsm [11]

Answer:

Option c. 0.73

Explanation:

Data provided in the question:

Market value of securities = $5,000

Current beta of the portfolio = 1.28

Beta of the riskiest security = 1.75

Required beta = 1.15

Now,

let the beta of the other security be 'x'

Portfolio beta = weighted average of individual betas in the portfolio

or

1.28 × 8 × $5000 = [  x × (8 - 1) × $5000 ] + [ 1.75 × $5000  ]

or

$51,200 = $35,000x + $8750

or

$35,000x = $42,450

or

x = 1.21

Thus,

If she wishes to reduce the beta to 1.15, by replacing the riskiest security,

let the beta of the replacement security be 'y'

Therefore,

1.15 × 8 × $5000 = [ 1.21 × (8 - 1 ) × $5000 ] + [ y × $5000  ]

or

$46,000 = $42,350 + $5,000y

or

$5,000y = $3,650

or

y = 0.73

Hence,

Option c. 0.73

4 0
2 years ago
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.6 percent indefinitely
VMariaS [17]

Answer:

$45.76

Explanation:

Next dividend = Dividend just paid * (1 + Dividend growth rate) = $3.71 * (1 + 0.036) = $3.84356

Using the formula for the dividend discount model, we can calculate he price per share of the company's stock as follows:

Stock price = Next dividend / (Required return - Dividend growth rate) = $3.84356 / (0.12 - 0.036) = $45.76

Therefore, the price per share of the company's stock is $45.76.

3 0
2 years ago
Assume that an MNC purchases a foreign building, and then leases the building to another party and allows that party to operate
Citrus2011 [14]

Answer:

The correct answer is letter "A": A foreign acquisition.

Explanation:

In corporate terms, a foreign acquisition is the purchase of a company or the division of a company. Some acquisitions are paid in cash while others are paid with a combination of cash and the acquiring company stock or even financed with debt which is called a leveraged buyout.  

Foreign acquisitions are often done by another company in a similar line of business who wishes to use the purchased business to improve its own operations.

8 0
2 years ago
Trade-off Theory. Smoke and Mirrors currently has EBIT of $25,000 and is all-equity financed. EBIT is expected to stay at this l
Paul [167]

Answer:

A. $162,500

B. $17,500

Explanation:

Data

EBIT = $25,000

Tax rate = T = 35%

Discount Rate = r = 10%

Requirement A:  Market Value

The Market value of the firm can be calculated by using the following formula

Market Value =  \frac{EBIT(1-T)}{r}

Market Value = \frac{25000(1-0.35)}{0.1}

Market Value = $162,500

Requirement B: Total value of firm If issues $50,000 of debt paying 6% interest

The market value of the firm increases by the present value of the Interest tax shield

The present value of tax shield = Amount of debt x Tax Rate

The present value of tax shield = $50,000 x 35%

The present value of tax shield = $17,500

The market value of the firm will be increased by $17,500

6 0
2 years ago
A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units t
Nastasia [14]

Answer: $67,600 and $2600

Explanation:

Total unit = 13,000

Defective unit cost = $5.20

Resale price = $3.00

Reworked = $5.00

Full price = $8.20

Opportunity cost

= Full price - replacement unit

= 8.20 - 5.20

= 3.00

= . Cost of reselling

= 13,000 × 3.00

= $39,000

1. Cost of defective units

= 13,000 × 5.20

= $67,600

2. Cost of reworked

= $5.00 × 13,000

= $65,000

3. Full price

= 13,000 × $8.20

= $106,600

B. Incremental income of selling the unit as scrap and reworked

Scarp = $67, 600

Reworked = $(106600 -39, 000- 65,000)

= $2600

8 0
2 years ago
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