When Industry Attractiveness Ratings Are Calculated for Each of the Industries

question 14

Multiple Choice

When industry attractiveness ratings are calculated for each of the industries a multibusiness company has diversified into,the results help indicate

• A) which industries appear to be the most and least attractiveness from the standpoint of the company's long-term performance.
• B) which industries have attractive key success factors and which industries have unattractive key success factors.
• C) which industries have the biggest economies of scale and which industries have the greatest economies of scope and the overall potential for cost reduction in the industries as a group.
• D) which industries are most attractive from the standpoint of long-term growth and the growth prospects of all the industries as a group.
• E) which industries are most attractive from the standpoint of industry driving forces and competitive forces.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Stated Value

A value assigned to no-par-value stock by the board of directors of a company, often used as the basis for accounting transactions.

Book Value Per Share

A measure that represents the equity value of a company per outstanding share, calculated by dividing the company's net assets by the number of shares outstanding.

Stock Valuation Models

The methods and strategies used to estimate the true value of a company's stock.