Glo-Bus Quiz 2 Already Passed

A company's managers should give serious consideration to changing from a low-cost/low price strategy for multi-featured cameras to a different strategy in the multi-featured camera market when {Ans: So many other rival companies are marketing low-priced multi-featured cameras that intensive competition in the low-end multi-featured camera segment makes it quite difficult for every company competing for buyers of low-priced multi-featured cameras to capture big enough revenues and global market share to earn attractively large profits selling low-priced multi-featured cameras.}In which one of the following situations/circumstances is it most reasonable for a company to consider shifting away from pursuit of a strategy to strongly differentiate its multi-featured cameras from the multi-featured camera brands of rival companies and sell them at a premium price? {Ans: When the market for high-end multi-featured cameras is crowded with companies using more or less copycat differentiation strategies to try to outcompete one another, thus making it difficult for any of these companies to earn attractively high profits.}If a company earns net income of $40 million in Year 8, has 10 million shares of stock, pays a dividend of $1,50 per share, and has annual interest costs of $15 million, then {Ans: The company's