Gary and Diane Must Prepare a Presentation for Their Marketing

question 183

Essay

Gary and Diane must prepare a presentation for their marketing class. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the required calculation and 10 hours to prepare the slides. It would take Diane 12 hours to do the calculations and 20 hours to prepare the slides.
a.How much time would it take the two to complete the project if they divide the calculations equally and the slides equally?
b.How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides?
c.If Diane and Gary have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?

Understand the impact of stock splits and reverse stock splits on earnings per share.

Recognize the effects of share repurchases on a company's earnings per share and equity.

Understand the strategic reasons behind stock splits, reverse stock splits, and share repurchases.

Know the financial implications of changing dividend policies based on taxes and investment opportunities.

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Definitions:

Muscle Aches

Discomfort or pain within the muscle tissue, often resulting from overexertion, tension, or a physical condition.

Common Cold

A viral infectious disease of the upper respiratory tract characterized by symptoms such as sneezing, sore throat, and runny nose.

Influenza

A highly contagious viral infection that attacks the respiratory system, commonly known as the flu.

Allergy

An immune system reaction to a foreign substance, such as pollen, food, or pet dander, that doesn't cause a response in most people.