Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of diversification. Diversification describes the processes of having diverse product offerings. When you diversify, you are differentiating your products to meet more needs for consumers. Since the brand of clothing recently introducted a line of fitness equipment, they are diverisfying themselves by branching out into other markets.
Answer:
The correct answer is letter "A": innovative.
Explanation:
Innovative changes allow companies to use new strategies and technologies to improve the efficiency of their operations. Sometimes those changes are processes or technological devices created by the company itself while in other cases they are adopted from other entities with similar approaches and accomplish almost the same goal.
Answer:
The correct answer is option d.
Explanation:
Unfavorable weather in Florida has adversely affected the production of Florida oranges. The decline in production has led to reduced supply of Florida oranges. This decrease in supply will lead to an increase in the price.
As Florida oranges and California oranges are substitutes, with the increase in the price of Florida oranges will lead to an increase in the demand for California oranges as people will prefer the cheaper substitute.
Answer:
c. $33,000
Explanation:
The computation of the total amount of goodwill recognized is shown below:
Goodwill = Consideration paid + Fair value of non controlling interests - Fair value of net identifiable assets
where,
Fair value of net identifiable assets = Book value of acquired company - Overvalued plant assets + Unreported identifiable intangible assets
= $25,000 - $6,000 + $10,000
= $29,000
So, the goodwill amount is
= $40,000 + $22,000 - $29,000
= $33,000
Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
