Mayo Corporation is currently trading at $30 per share. There are 10 million shares outstanding, and the company has no debt
You believe that the value of the company would increase by 50% if the management were replaced. How much would you gain from acquiring 50% of Mayo's shares by borrowing, attaching the debt to the company and replacing the management?
A) $150 million
B) $225 million
C) $300 million
D) $10 million
Answer: A
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Sales promotion expenditures increased as a percentage of budget expenditure for a number of years, although its growth has recently slowed. Which of the following is a factor that has contributed to the growth of sales promotion expenditures?
A) many brands have come to be seen as dissimilar B) the efficiency of advertising as a promotion has improved C) the trade demands more deals from manufacturers D) consumers have become less price-oriented E) the number of brands in the market has decreased
A deliberate strategy is best exemplified by a(n)
A. IT firm that trims jobs during a recession. B. airline company that cuts frills in order to cope with increasing fuel prices. C. online jewelry reseller that discontinues its line of turquoise rings due to lack of demand. D. smartphone manufacturer that divests its tablet production branch after not gaining market share. E. popular downtown theater that has been staging plays and showing films decides to begin booking rock and roll acts.
Which of the following is most likely to be a valid reason for initiating a price increase?
A) anticipated cost inflation B) excess plant capacity C) a drive to dominate the market D) a low-cost strategy E) a market share objective
Improvements in conciseness will also result in improvements in clarity
Indicate whether the statement is true or false.