Assume that Plavor Brands, Inc has 10,000,000 common shares outstanding that have a par value
of $2 per share. The stock is currently trading for $30 per share. The firm reported a net profit
after-tax of $25,000,000.
All else equal, what will happen to earnings per share if the company
issues a 10% stock dividend?
A) Earnings per share will increase because the dividend increases the value of the company.
B) Earnings per share will remain the same since a stock dividend does not create an expense.
C) Earnings per share will decrease because the number of shares outstanding will go up.
D) The impact cannot be determined without additional information on the new price per share.
C
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Which of the following is used to assess overall performance at a corporate level?
A. Asset B. Square foot of selling space C. Inventory D. The number of full-time employees E. Comparable-store sales growth
Which of the following is the most serious disadvantage of guest co-production for the organization?
a. It increases legal risk. b. It increases training costs. c. It requires changes in the service environment. d. It requires changes in the delivery system.
When fixed costs are $46,500, the variable cost is $12 per unit, and the product sells for $22 per unit, the breakeven point is
a. 4,650 units. b. 9,300 units. c. 2,325 units. d. 6,975 units.
Rhodia invites tourists from all over the world to experience its pristine nature, clear skies, and beautiful summertime climate. This exemplifies ________
A) corporate image marketing B) social marketing C) place marketing D) social engineering E) negative brand equity