The justification for the benefits of diversification from mergers include all of the following EXCEPT ________
A) tax loss benefits
B) lower cost of debt or increased debt capacity
C) direct risk reduction
D) liquidity enhancement
Answer: A
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Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product BDirect materials$20,000 $15,000 Direct labor 12,000 $24,000 The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round your intermediate calculations.)
A. $22.20 B. $16.80 C. $7.80 D. None of the answers are correct.
A service-focused firm offers a narrow range of services to a fairly broad market
Indicate whether the statement is true or false
Cooperative advertising efforts between manufacturers and retailers demonstrate the promotional objective of
A. stimulating demand. B. reducing sales fluctuations. C. combating competitive promotional efforts. D. facilitating reseller support. E. retaining loyal customers.
The purchase of a June 25 call on XXO stock and the sale of a June 30 call on XXO stock is known as a
A) long straddle. B) short straddle. C) vertical spread. D) horizontal spread.