The Following Information Is Available for Bradshaw Corporation and Newell

question 173

Multiple Choice

The following information is available for Bradshaw Corporation and Newell Corporation: $$\begin{array} { | l | c | c | c | c | } \hline { \text { (in millions) } } & { \text { Bradshaw Corporation } } && { \text { Newell Corporation } } \\\hline & 2017 & 2016 & 2017 & 2016 \\\hline \text { Preferred dividends } & 25 & 10 & 0 & 30 \\\hline \text { Net income } & 500 & 480 & 490 & 520 \\\hline \begin{array} { l } \text { Shares outstanding at the } \\\text { end of the year }\end{array} & 200 & 180 & 150 & 200 \\\hline \begin{array} { l } \text { Shares outstanding at the } \\\text { beginning of the year }\end{array} & 180 & 150 & 200 & 220 \\\hline\end{array}$$ Based on the information for both Bradshaw and Newell over the two-year period, the earnings per share calculations (rounded to two decimals) indicate that

• A)Bradshaw is seeing a greater performance improvement than Newell.
• B)the earnings available to common stockholders is decreasing for Newell and increasing for Bradshaw.
• C)the earnings per share calculations for both companies assume that changes in shares between 2016 and 2017 occur in the middle of the year.
• D)Newell is more financially stable than Bradshaw.

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Definitions:

Locally Responsive

An approach or strategy where a company adjusts its products, services, and practices to better align with local buyer preferences and market conditions.

Knowledge Transfer

The process through which skills, knowledge, technologies, or methodologies are passed from one individual or organization to another.

Transnational Strategy

A global business approach that involves operating in multiple countries with a coordinated strategy, balancing global efficiency and local responsiveness.

Locally Responsive

Being locally responsive refers to a business strategy that involves tailoring products, services, and operations to meet the cultural, legal, and consumer preferences of local markets.