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Which of the following is NOT an action company co-managers can take to boost a subpar ROE?
- answer✔Issue additional shares of stock and use the proceeds to pay down the debt
outstanding on the company's line of credit.
Which one of the following actions is usually a dependable and appealing way for managers to
try to boost their company's EPS? - answer✔Achieve a differentiation-based competitive
advantage over rivals in both the entry-level and multi-featured camera segments that
company managers are savvy enough to sustain; as the market demand for digital cameras
grows worldwide and the company exploits its competitive advantage to win additional sales,
the profit margins from a growing sales volume of entry-level and multi-featured digital
cameras typically results in increase in EPS.
The industry-low, industry-average, and industry-high benchmarks for camera costs and
operating profits on pp. 5-6 of each issue of the GLO-BUS Statistical Review. - answer✔Are
worth careful scrutiny by the managers of all companies because when the benchmarking data
signals that a company's costs/operating profits for one or more of the benchmarks are clearly
out-of-line (or unappealing), managers are well advised to take corrective action in the next
decision round.
According to the depreciation rates used by the company and described in the Production Cost
Report, if a company adds 50 new workstations at a cost of $75,000 each and also spends $10
million for an addition to its assembly plant to accommodate the new workstations, than its
annual depreciation costs will rise by - answer✔$550,000
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