Stenikson has three strategic business units (SBUs)—video games, fashion, and electronics. The company is planning to invest more money into its video games unit because it is a fast-growing market, even though the company has a very small share in the market. In the context of the BCG matrix, which of the following categories of SBUs best describes the video games unit?
a. Stars
b. Cash cows
c. Question marks
d. Dogs

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Which of the following events could increase the demand for labor? a. an increase in the marginal productivity of workers b. a decrease in the amount of capital available for workers to use c. a decrease in the wage paid to workers d. a decrease in output price

When a market is in equilibrium, the buyers are those with the willingness to pay and the sellers are those with the costs.