Why has corporate restructuring become a popular strategy at many diversified companies over the past decade?
What will be an ideal response?
Performing radical surgery or restructuring a company's business lineup has become a popular strategy at many diversified companies, especially those that had diversified broadly into many different industries and lines of business. Under some circumstances a diversified company's financial performance has become squeezed or eroded by a serious mismatch between the company's resources and capabilities and the type of diversification that it has pursued, resulting in: (1) too many businesses in slow-growth, declining, low-margin, or otherwise unattractive industries; (2) too many competitively weak businesses; (3) an excessive debt burden with interest costs that eat deeply into profitability; and/or (4) ill-chosen acquisitions that haven't lived up to expectations.
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Dividing the inventory on hand by the average daily usage or sales is the calculation for
A. inventory supply. B. inventory turns. C. days of supply. D. stockout. E. days of stock.
Dick steals Jane's camcorder and sells it to Sid. Jane can recover the camcorder from Sid:
a. under any circumstances. b. only if Sid knew that the camcorder was stolen from Jane. c. only if Sid did not know that the camcorder was stolen from Jane. d. only if Sid paid less than the fair market value for the camcorder.
Green Company stock has a beta of 2 and a required return of 23%, while Gold Company stock has
a beta of 1.0 and a required return of 14%. The standard deviation of returns for Green Company is 10% more than the standard deviation for Gold Company. The expected return on the market portfolio according to the CAPM is A) 9%. B) 14%. C) 10%. D) 12%.
Carcana Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the period to calculate predetermined overhead rates:??MachiningFinishingTotal?Estimated total machine-hours (MHs)1,0004,0005,000?Estimated total fixed manufacturing overhead cost$4,200$8,800$13,000?Estimated variable manufacturing overhead cost per MH$1.90$2.90?During the period, the company started and completed two jobs--Job E and Job G. Data concerning those two jobs follow:??Job EJob G?Direct materials$11,800$8,000?Direct labor cost$19,200$6,700?Machining machine-hours700300?Finishing machine-hours1,6002,400Required:a. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation
base in both departments. What is the departmental predetermined overhead rate in the Machining department?b. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Finishing department?c. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job E?d. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job G?e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job E.f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job G.g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. If both jobs were sold during the month, what was the company's cost of goods sold for the month? What will be an ideal response?