a) Screen time skyrocketed, boosting online and ad revenue.
b) Online grocery delivery saw demand double in just a few months.
c) Profits were pushed even higher at Apple, Microsoft, and Amazon; a triopoly that rakes in more than half of all digital ad revenue.
d) Streaming services boomed and e-commerce exploded.
e) Tech was responsible for the acceleration of vaccine development.
As we emerge from a global pandemic, tech has become even more deeply embedded into our lives. Our screen time has skyrocketed, boosting online ad revenue to make up over half of all ad spending for the first time ever, and pushing profits even higher at Google, Facebook, and Amazon; a triopoly that rakes in more than half of all digital ad revenue. Streaming services boomed, and e-commerce exploded. Online grocery delivery, a segment that had seen slow consumer adoption in the U.S. prior to COVID-19, saw demand double in just a few months. Tech was also front-and-center, responsible for the acceleration of vaccine development, allowing a handful of treatments to hit the market in record-shattering time, and almost certainly saving multimillions of lives.
Data analytics and business intelligence are creating a shifting knife-edge of privacy concerns that can shred corporate reputations if mishandled. And the pervasiveness of computing has created a set of security and espionage threats unimaginable to the prior generation.
Many organizations today collect and seek insights from massive datasets, which are often referred to as "Big Data." Data analytics and business intelligence are driving discovery and innovation, redefining modern marketing, and creating a shifting knife-edge of privacy concerns that can shred corporate reputations if mishandled.
Desert Rose, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 30 percent debt. Currently, there are 6,500 shares outstanding, and the price per share is $45. EBIT is expected to remain at$29,000 per year forever. The interest rate on new debt is 8 percent, and there are no taxes.
a. Allison, a shareholder of the firm, owns 100 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent?
b. What will Allison’s cash flow be under the proposed capital structure of the firm? Assume she keeps all 100 of her shares.
c. Assume the company does convert, but Allison prefers the current all-equity capital structure. Show how she could unlever her shares of stock to recreate the original capital structure.
d. Using your answer to part (c), explain why the company’s choice of capital structure is irrelevant.
Which of the following is not a criticism of scientific management?
a. It does not appreciate the social context of work.
b. It does not appreciate the higher needs of workers.
c. It does not appreciate the careful study of tasks and jobs.
d. It does not acknowledge variance among individuals.
e. It tends to regard workers as uninformed and ignore their ideas and suggestions.
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $50,000 to produce 1,250 units that can be sold now for$67,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $250 per unit. If Holmes processes further, the units can be sold for$375 each. Should Holmes sell the product now or process it further?