A decline in earnings that investors expect to be temporary may actually increase a firm's P/E ratio

An executive order issued by President Lyndon Johnson requires certain employers to engage in affirmative action in order to improve job opportunities to underrepresented groups, particularly women and racial minorities. What kind of employers are subject to this affirmative action policy?

A. Employers with more than 100 employees B. Employers with net assets in excess of $5 million. C. Employers whose shares of stock are publicly traded. D. Employers who enter into contracts with the federal government. E. Employers engaged in interstate commerce.

Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million

Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Walmart's buyer power and cost leadership B) Walmart's barriers to entry and differentiation C) Walmart's loose bricks and switching costs D) Walmart's focused differentiation and supplier power E) Walmart's discount policies for customers