As a company moves through its life cycle from pioneering development to decline, typically: a. Its payout ratio increases, its dividend yield decreases, and its price/earnings ratio increases. b. Its payout ratio increases, its dividend yield increases, and its price/earnings ratio decreases. c. Its payout ratio decreases, its dividend yield increases, and its price/earnings ratio increases. d. Its payout ratio decreases, its dividend yield decreases, and its price/earnings ratio decreases. - Dinesh S
Dude u r right… Which of the following is least likely to cause a change in a company’s market share? a. Macroeconomic conditions change. b. A competitor changes its marketing strategy. c. The number of firms in the industry increases. d. Government assigns certain industry tax breaks. Can u see the tears in my eyes?? - Dinesh S
The answer is D, though I had chosen A initially… - Dinesh S
Dinesh can you share the explanation for the second one…i was thinking B here
they say that tax breaks will equally make the industry happy… so no NET effect… - Dinesh S
d. Government assigns certain industry tax breaks. now it makes sense i was thinking about market cap not market share if the tax breaks are within the industry then all competitors benefit from it therefore the market share should not change I guess i’m tired
Bill Beatie, CFA, is performing a comparative analysis of the widget and doohickey industries. During his research, he has collected the following information about each. Widget Doohickey Number of Producers (Suppliers) 3 12 Number of Customers (Buyers) 30 25 Number of Substitute Products 2 6 Average Fixed Assets in Dollars $25 million $500 million According to competitive forces, which industry will most likely have the more competitive industry structure? a. The doohickey industry because it has lower barriers to entry. b. The widget industry because of the more intense rivalry between firms. c. The doohickey industry because of the greater bargaining power of customers. d. The widget industry because of the higher number of customers. - Dinesh S
ill go with C
dinesh you are the man these questions keep me alive
So its a Porter 5 question… A is incorrect, because it has higher barriers to entry B looks ok C same as below D customers are not that much higher, so no I’d go with B I wonder when the intensity between comptt is high, when the number is less or more, Perfect comptt says high # of firms = increased comptt. but I thing “intensity” will be higher when the # of firms is low. Internet Search mkt is pretty intense.
I’ll go with C as well. Florinpop is right. Where do you get these questions from??
Yes, It’s Potter… Passmaster is killer (all the questions that I post here are from passmaster…) But florinpop, you are on a roll… C is the right answer - Dinesh S
florinpop Wrote: ------------------------------------------------------- > d. Government assigns certain industry tax > breaks. > > now it makes sense > i was thinking about market cap not market share > if the tax breaks are within the industry then all > competitors benefit from it therefore the market > share should not change > I guess i’m tired I was going with thinking ‘certain industry tax breaks’ make the industry more profitable, hence more entry into the industry.