Answer: Turn down the acquisition offer and prepare to resist a hostile takeover.
Explanation:
Since Johnson analysed the past performance of Openlane hardware and found out that past performance, conducting focus groups, and interviewing Openlane employees, Johnson concludes that the company has poor profit margins, sells shoddy merchandise, and treats customers poorly, then Johnson and Conecom Hardware should turn down the acquisition offer and prepare to resist a hostile takeover.
In this case, the merge between the companies will have a negative impact on Johnson and Conecom hardware due to the fact that the company has a bad reputation already and this can have an effect on Conecom. Therefore, the acquisition offer should be turned down.
Answer:
(B) a cash cow
Explanation:
<u>It growth rate is decreasing, but their market share is high. It is a cash cow</u>
This means it is a division which generates cash. It proceeds should be used to generate stars.
<u>Start: high market share high growth</u>
It will be a division with their growth increasing, in this case is decreasing.
<u>question mark: high growth low market share</u>
Al Rubber is the complete opposite, its market share is high and it growth is decreasing.
<u>dog: low growth low market share</u>
While the growth is low, the market share is high, so it is not a dog.
In order to get a comprehensive evaluation of the computer
programmers organized a 360 degree interview where he asked immediate coworkers
and others that worked closely with the programmers to participate in the
evaluation process. Setting up interviews, performing background checks on
selected candidates, and establishing probationary periods.
<u>Answer:</u>
a.$7,175,000
b.$3,655,000
c.$2,825,000
<u>Explanation:</u>
a.Calculation of Cost of Goods Sold
COGS= Sales - Gross profit
=12375000-5200000
=$7,175,000
Cost of Goods Sold for Creston Inc is $7,175,000
b. Calculation of direct materials cost
Direct Material Cost = Materials purchased - Indirect materials - Materials inventory
=4125000-180000-290000
=$3,655,000
Direct materials cost is $3,655,000
c. Calculation of direct labor cost
Direct labor cost= Total manufacturing costs for the period - Direct materials - factory overhead (Indirect labor + Indirect materials + Other factory overhead)
=7880000-3655000-1400000
=$2825000
Direct labor cost is $2,825,000
Answer: interest rate parity holds
Explanation:
Covered interest arbitrage is a trading strategy that is used by an investor when the person whereby takes advantage of the differences in interest rate between two nations and invest in the currency that brings higher value.
If covered interest arbitrage opportunities do not exist, it simply means that interest rate parity holds.