Answer:
Masters Machine Shop
PV of Salvage value = $74,000 x 0.683 = $50,542
Present value of total savings $449,126
less Present value of investments 494,888
Net Present Value $4,780
Explanation:
a) Data Amount Present Value
Cash Outflow $450,000 $450,000
Initial spare parts 33,000 33,000
Annual Inventory 3,750 11,888
PV of investments $494,888
Project lifespan = 4 years
Discount rate = 10%
Annual pretax cost savings = $184,000
Tax rate 23% 42,320
After Tax savings $141,680
PV of Annuity of Tax savings = $141,680 x 3.170 = $449,126
Salvage value = $74,000
PV of Salvage value = $74,000 x 0.683 = $50,542
Present value of total savings $449,126
less Present value of investments 494,888
Net Present Value $4,780
b) Master Machine Shop's Net Present Value (NPV) is the difference between the cash inflows (savings) and the cash outflows (investments) for this four-year project
Mason Corporation had $1,150,000 in invested assets, sales of $1,228,000, income from operations amounting to $226,000, and a desired minimum rate of return of 12%. Round your answer to two decimal places. The investment turnover for Mason Corporation is a.0.85 b.1.07 c.1.28 d.1.60
Answer:
b.1.07
Explanation:
Investment turnover ratio determines the times when the portfolio of investment is sold during a particular period of time e.g Monthly, Annually, etc. The higher turnover results in more commission earned by the broker who is selling the portfolio.
Investment Turnover = Sales / Invested Assets
Investment Turnover = $1,228,000, / $1,150,000
Investment Turnover = 1.067826
Investment Turnover = 1.07 ( Rounded off to 2 decimals places )
The Big Five Personality refers to the structures and propensities of people that explain their patterns of thought, emotion, and behavior. Although there are literally thousands of traits that can be used to describe an individual's personality, most traits reflect one of five broad dimensions or factors of personality: conscientiousness, agreeableness, neuroticism, openness to experience, and extraversion. It is especially useful for managers to understand the personality traits of their employees since these traits often have important implications for workplace attitudes and behaviors, such as performance and commitment. The following activity takes you through the thought process of a manager trying to hire a new sales associate based on personality assessments of the candidates. Imagine that you are a midlevel manager at a paper company and you are in the process of hiring a new sales associate. So far, you have scheduled interviews with three potential candidates. You just concluded your first interview and want to spend some time reflecting on the notes you took. In particular, you want to make sure that you have a solid grasp of each candidate's personality traits since you know how important that can be on the job. Read through the notes and classify them according to the Big Five Taxonomy of personality. Conscientiousness Agreeableness Neuroticism Took Initiative Openness to Experience Cold Hardworking Extraversion
Answer and Explanation:
Please find attachments
The big five taxonomy of personality refers to the "Big five" personality traits believed to be the traits on which many different personalities of people revolve. They include:extraversion, agreeableness, openness, conscientiousness, and neuroticism.
In the example above, based on the manager's interview with Cynthia. The manager can understand her personality by classifying using the big five personality traits based on information gathered from her and recommendations:
Cynthia took initiative: this falls under openness which are people who are creative and adventurous and like to learn new things
Cynthia could be hardworking: this falls under conscientiousness characterized by people who are generally organized and careful about things
Cynthia follows procedures: this falls under agreeableness which is the tendency to be trust and be cooperative
Cynthia seemed nervous: this falls under neuroticism which is the tendency for one to be emotionally unstable and usually have mood swings, anxiety or be sad
Cynthia was described as cold: this is also fall under neuroticism as Cynthia could be depressed
When product discontinuance is being considered, changes in fixed cost and ______________ will impact the decision. Group of answer choices inventory turnover contribution margin sunk costs administrative cost
Answer:
variable
Explanation:
if one is fixed the other must be changeable as a variable that cant easily be controlled
Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 145 units per hour. In the month of July, the company operated the production line for a total of 265 hours and produced 30,400 units of output.What was its capacity utilization rate for the month?
Answer:
79.1%
Explanation:
Hoosier manufacturing operates a production shop that is modelled to have the lowest unit of production
The output rate is 145 units per hour
In the month of July the company operated the production line for 265 hours
30,400 units of output were produced
Therefore, the capacity utilization rate can be calculated as follows
= 30,400 units/265 hours ×145
= 30,400/38,425
= 0.791×100
= 79.1%
Hence the capacity utilization rate for the month is 79.1%
Mullineaux Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 11 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 35 percent. What is Mullineaux WACC
Answer:
Mullineaux Corporation
WACC (Weighted Average Cost of Capital):
WACC = (11% of 70%) + (5% of 5%) + (7% of 25%) (1 - 35%)
= 0.077 + 0.0025 + 0.0175(65%)
= 0.09087
= 9.1%
Explanation:
Target Capital Structure:
Common stock = 70%
Preferred stock = 5%
Debt = 25%
Total = 100%
Cost of:
Equity = 11%
Preferred stock = 5%
Debt (pretax) = 7%
Tax rate = 35%
Mullineaux's WACC is the weighted average cost of its capital sources, including equity and debt. It means that Mullineaux Corporation has to weigh each class of capital based on their capital structure weights in order to calculate the average. This WACC therefore represents the hurdle rate which a project must meet for Mullineaux Corporation to accept or reject the project.
A stock had returns of 15.51 percent, 22.47 percent, −8.68 percent, and 9.43 percent over four of the past five years. The arithmetic average return over the five years was 12.71 percent. What was the stock return for the missing year?
Answer:
24.82%
Explanation:
Arithmetic average = sum of observations / number of observations
Let x = the stock return for year 5
12.71 % = (15.51% + 22.47% −8.68% + 9.43 + x) /5
Multiply both sides by 5
63.55% = (5.51% + 22.47% −8.68% + 9.43 + x)
63.55% = 38.73% + x
x = 63.55% - 38.73% = 24.82%
if the growth rate of the money supply is 8%, velocity is constant, and reald GDP grows at 2% per year on average, then the inflation rate will be
Answer:
4%
Explanation:
The quantity theory of money states that :
Money supply x Velocity = price x real GDP
8% = 2% x price
Price = 4%
In addition to the date of recordation, what other factor is used to determine lien priority?
Answer:
Two factors primarily determine lien priority. Firstly the lien's categorization as superior or junior, and secondly the date the lien was recorded.
Explanation:
An encumbrance is most broadly defined as
another's right to use a property without the permission of the property owner.
another's right to claim the sale proceeds of a property that has been used as collateral for a loan.
another's interest in a real property that limits the interests of the freehold property owner.
another's right to control how the freehold owner of a real property uses the property.
In addition to the date of recordation, lien's categorization is other factor used to determine lien priority.
What is lien priority?Lien priority helps to know the order in which creditors get paid following a foreclosure.
Date of recordation is one of the factor yo consider because those on the earlier dates are attended to first.
Therefore, lien priority is so base on categorization because Superiors are been attended to first.
Learn more about lien priority at;
https://brainly.com/question/24858866
the construction of a 1000 suit luxury hotel requires the installation of 12 outlets and 6 light fictures per suit . The companys standard productivity for a two electrician crew is 20 minutes per light fixture and 30 minutes per outlet. Using eighteen crews working at a 0.8 efficiency factor and a 10hr work day with a half an hour lunch break , the duration of this construction activity (days,hours) is most nearly how much
Answer:
Hours = 8000
Days = 46.78
Explanation:
The duration of this construction activity can be calculated as follows
DATA
No. of suits = 1000
Outlets to be installed = 12/suit
Standard productivity for outlet = 30mins
Fixtures to be installed = 6/suit
Standard productivity light fixture = 20mins
Working hours per day = 10 hours - 0.5 lunch break
Working hours per day = 9.5 hours
No. of crews = 18
Solution
Total time to fix = No.of suits x no. of installations x Standard time
Total time to fix = (1000 x 12 x 30mins ) + ( 1000 x 6 x 20mins)
Total time to fix = 480000 mins
Total time to fix = 480000/60mins = 8000 hours
Duration in days = Total time / (hrs per day x mo. of crews)
Duration in days = 8000 hours / (9.5 x 18)
Duration in days = 8000/171
Duration in days = 46.78 days
he management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales $68,000 $126,000 $53,000 $247,000 Cost of goods sold 40,000 66,000 21,000 127,000 Contribution margin 28,000 60,000 32,000 120,000 Order and delivery processing 21,000 24,000 11,000 56,000 Rent (per sq. foot used) 2,000 5,000 4,000 11,000 Allocated corporate costs 8,000 8,000 8,000 24,000 Corporate profit $ (3,000) $23,000 $9,000 $29,000 If the cookbook product line had been discontinued prior to this year, the company would have reported ________.
Answer:
Giada's Book Store
The company would have reported a total profit of $19,000, which is $10,000 less.
Explanation:
a) Data and Calculations:
Income statement for the most current year:
Cookbook Travel Book Classics Total
Sales $68,000 $126,000 $53,000 $247,000
Cost of goods sold 40,000 66,000 21,000 127,000
Contribution margin 28,000 60,000 32,000 120,000
Order and delivery processing 21,000 24,000 11,000 56,000
Rent (per sq. foot used) 2,000 5,000 4,000 11,000
Allocated corporate costs 8,000 8,000 8,000 24,000 Corporate profit $ (3,000) $23,000 $9,000 $29,000
Corporate profit = $29,000
less allocated cookbook costs 10,000
Adjusted corporate profit = $19,000
b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.
Busch Company has these obligations at December 31. For each obligation, indicate whether it should be classified as a current liability, long-term liability, or both. (a) A note payable for $100,000 due in 2 years. select a balance sheet section (b) A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments. select a balance sheet section (c) Interest payable of $15,000 on the mortgage. select a balance sheet section (d) Accounts payable of $60,000. select a balance sheet section
Answer:
Busch Company
Indication of whether the obligation be classified as a current liability, long-term liability, or both:
(a) A note payable for $100,000 due in 2 years. Long-term Liability
(b) A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments. Both.
Every year, $20,000 would be classified as Current Liability while the remaining balance is long-term liabilities.
(c) Interest payable of $15,000 on the mortgage. Both
If the interest payable is to be settled at the end of the mortgage, then it is classified as only long-term.
(d) Accounts payable of $60,000. Current Liability
Explanation:
Busch's current liabilities are financial obligations that are due for settlement within the next accounting period of 12 months or less.
The long-term liabilities of Busch Company are those financial obligations that are not due for settlement within the next accounting period.
For some long-term liabilities, Busch may settle some part within 12 months. That part that can be settled within the accounting period are classified as current while the other parts are non-current.
Sarah takes out a loan today for $26,000 at an interest rate of 2 percent a year. She plans to repay the loan after 5 years. How much will he have to pay?
Sarah will have to pay:__________
Answer:
$28,706.10
Explanation:
The computation of the amount of pay is shown below:
Here we have to find the future value by using the following formula
Future value = Present value × (1 + interest rate)^number of years
= $26,000 × (1 + 0.02)^5
= $28,706.10
We simply applied the above formula so that the amount of pay could be come and the same is to be considered
Stellar Corporation has a cumulative temporary difference related to depreciation of $542,000 at December 31, 2017. This difference will reverse as follows: 2018, $37,000; 2019, $225,000; and 2020, $280,000. Enacted tax rates are 35% for 2018 and 2019, and 40% for 2020. Compute the amount Stellar should report as a deferred tax liability at December 31, 2017. Deferred tax liability at December 31, 2017
Answer:
$203,700
Explanation:
2018 2019 2020
Temporary difference $37,000 $225,000 $280,000
Tax rate 35% 35% 40%
Deferred tax liability $12,950 $78,750 $112,000
Deferred tax liability to be reported at December 31, 2017 = $12,950 + $78,750 + $112,000 = $203,700
You can spend $150 on either a new Kindle or a new pair of boots. If you choose to buy the new kindle, the economic cost of it is:
Answer:
$300
Explanation:
The economic cost is the sum of implicit cost and explicit cost.The implicit cost is the cost by implication, which is the cost of alternative forgone.
The explicit cost is the actual cost requiring actual cash flow in settling it.
Economic cost=cost of new kindle+cost of alternative forgone(new pair of boots)
Economic cost=$150+$150
The explicit cost is also the cost incurred from accounting point of view
Cullumber Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Cullumber will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Cullumber will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer and Explanation:
The preparation of the analysis that depicts the total cost saving is presented below:
Particulars Make Buy Net Income or decrease
Variable
Manufacturing Cost $73,500 - $73,500
(14,700 × $5)
Fixed
Manufacturing cost $29,400 $29,400 -
(14,700 × $2)
Purchase price
(14,700 × $6) - $88,200 ($88,200)
Total annual cost $102,900 $117,600 ($14,700)
Based on the total annual cost the company should make the product as it saves the cost by $14,700
An asset has an average return of 11.57 percent and a standard deviation of 24.54 percent. What is the most you should expect to lose in any given year with a probability of 2.5 percent?
Answer:
-37.51
Explanation:
Confidence interval = 1 - Probability * 2
= 1 - 0.025*2
= 0.95
= 95%
As per 95% rule , range = mean +/- 2 * Standard deviation
= 11.57 +/- 2 * 24.54
= 11.57 - 2 * 24.54 to 11.57 + 2 * 24.54
= 11.57 - 49.08 to 11.57 + 49.08
= -37.51 to 60.65
Conclusion: -37.51 is the lower bound hence it is the max one can expect to lose in any given year.
Graham Motors manufactures specialty tractors. It has two divisions: a Treactor Division and a Tire Division. The Tractor Division can use the tires produced by the Tire Division. The market price per tire is $75. The Tire Division has the following costs per tire:Direct material cost per tire: $15Conversion costs per tire: $3 (Assume the $3 includes only the variable portion of conversion costs.)Fixed manufacturing overhead cost for the year is expected to total $116,000. The Tire Division expects to manufacture 58,000 tires this year. The fixed manufacturing overhead per tire is $2 ($116,000 divided by 58,000 tires).Assume that the Tire Division has excess capacity, meaning that it can produce tires for the Tractor Division without giving up any of its current tire sales to outsiders. If Graham Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price?• The lowest acceptable transfer price is $_______, the Tire Division's ______________.• The highest acceptable transfer price is $_______, the Tire Division's _____________.
Answer:
The LOWEST acceptable transfer price is $18 the Tire Division's variable cost per tire.
The HIGHEST acceptable transfer price is $75the Tire Division's market price.
Explanation:
Calculation for the lowest acceptable transfer price and the highest acceptable transfer price
Variable Cost per tire:
Direct Material $15
Conversion cost $3
=$18 per tire
The LOWEST acceptable transfer price is $18 Tire division variable cost per tire
Based on the information we were told that the market price per tire is $75 which means that the HIGHEST transfer price is $75 tire division market price.
Therefore If Graham Motors has a negotiated transfer price policy The LOWEST acceptable transfer price is $18 the Tire Division's variable cost per tire While The HIGHEST acceptable transfer price is $75 the Tire Division's market price.
This year Baldwin achieved an ROE of 5.9%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Baldwin's ROE
Answer:
ROE will increase
Explanation:
This action will cause an increase in Baldwin's ROE
ROE is the same as return on Equity. The return on equity is equal to the net profit margin multiplied by asset turnover which is also multiplied by equity multiplier.
From the above, if asset turnover is being increased by measures taken by the management, the ROE will also have to increase too. Firms will have to be generating more sales per units of the assets that they own.
Next week, Mortimer is preparing to go to work for the Illinois department of Child Services. He was surprised when his friends told him that he was going to have to pay one percent of his salary to the union that represents the unionized workers that would include Mortimer, whether he joined the union or not - a so-called agency fee to prevent 'free riders'. This was for services provided to Mortimer, including collective bargaining and grievance representation. Mortimer was shocked - no one had told him about this! What advice would you provide to Mortimer?
Answer:
The implication is that the Illinois Department of Child Services is a unionized workplace.
Mortimer will derive better benefits that surpass the costs of membership. He is covered in all collective bargains, even when he resigns his union membership. Unions negotiate for better working conditions, higher pays, and improved benefits.
When Mortimer has any grievance against the department, the union will also represent him, thereby making his life easier since unions can negotiate better with employers than individual workers.
Mortimer is even lucky to find a job at a unionized workplace because the jobs are not usually advertised as union members easily bring in their relatives and friends to occupy such vacancies.
Explanation:
Most of the disadvantages that Mortimer should complain about unions are disadvantages to the employer and not to him as an individual worker. For the employer, the union acts as a form of monopoly that can decide whether the workers would work or not. The unionized workers are not easy to replace with other workers.
The Cutting Department at Blanc Company had beginning work in process inventory of 4,000 units, transferred out 9,000 units, and had 2,000 units in ending work in process inventory. The number of units started into production by the Cutting Department during the month is
Answer:
The number of units started into production is 7,000.
Explanation:
Number of units started into production = Units transferred out + units of ending work in process - units of beginning work in process
= 9,000 + 2,000 - 4,000
= 7,000
"A customer has an existing margin account that shows the following: Long Market Value: $50,000 Debit Balance: $30,000 The market value declines to $30,000, the customer is sent a maintenance call, which the customer wishes to meet by depositing fully paid stock. The amount of stock that must be deposited is:"
Answer:
The amount of stock that must be deposited is $10,000.
Explanation:
Generally, the minimum margin is 25% of the Debit Balance. This implies that the account of the customer will receive a maintenance call for 25% of $30,000 which is $7,500 as a cash deposit.
Note that a maintenance call refers to a call to request a customer to provide additional funds when the market value of securities in his margin account has fallen below an established minimum.
However, the customer can decide to deposit other fully paid stock to meet the maintenance call of $7,500 instead of depositing cash. The minimum market value of securities needed in the account can be calculated by dividing the Debit balance by 75%, i.e.
Minimum market value of securities needed = $30,000 / 75% = $40,000
Since there is a $30,000 worth of securities already in the account, the customer will have to deposit additional $10,000 worth of securities, i.e.:
The amount of stock that must be deposited = Minimum market value of securities needed - Debit balance = $40,000 - $30,000 = $10,000
Therefore, the amount of stock that must be deposited is $10,000.
the fair value of Blossom is estimated to be $820,800. The carrying value of Blossom’s net identifiable assets, including the goodwill, at year-end is $855,000. Prepare Cullumber’s journal entry, if necessary, to record impairment of goodwill.
Answer:
Cullumber Company
Journal Entry:
Debit Loss on Goodwill Impairment $34,200
Credit Goodwill $34,200
To record the loss on goodwill impairment.
Explanation:
a) Data and Calculation:
Fair value = $820,800
Carrying value of net identifiable assets, including goodwill = $855,000
Goodwill impairment = $34,200 ($855,000 - $820,800)
b) Cullumber, which acquired Blossom is expected to check for the impairment of goodwill yearly. The impairment occurs when the carrying value of the net identifiable assets of Blossom is more than the fair value of Blossom. Generally Accepted Accounting Standards require the annual review of the fair value of goodwill to check for its impairment. By the above entry, the goodwill will be reduced by $34,200 and a loss debited in Cullumber's accounts.
Sanders, a 62-year-old single individual, sold his principal residence for the net amount of $500,000 after all selling expenses. Sanders bought the house 15 years ago and has occupied it until it sold. On the date of sale, the house had a cost basis of $200,000. Within six months, Sanders purchased a new house for $600,000. What amount of gain should Sanders recognize from the sale of the residence g
Answer:
$50,000
Explanation:
Recognized gain can be calculated by deducting the exclusion available from the realized gain. To qualify for exclusion from the realized gain Sanders has met all the requirements of exclusion.
NOTE: Requirments for exclusion are given at the end of solution
DATA
Sale proceeds = $500,000
Cost basis = $200,000
exclusion available for single person = $250,000
Gain =?
Calculation
Realized gain on sale of home = Sale proceeds – Cost basis
Realized gain on sale of home = $500,000 - $200,000
Realized gain on sale of home = $300,000
Recognized gain = Realized gain - exclusion available
Recognized gain = $300,000 - $250,000
Recognized gain = $50,000
Requirements for exclusion
1. You've owned the home for two of the last five years.
2. You used the home as your principal residence for two of the last five years.
3. You haven't used the exclusion on another property sale within the last two years.
Which of the following conditions would necessitate the use of non-verbal communication instead of verbal communication?A) Low physical distanceB) Need for immediate feedbackC) Personal nature of communicationD) Familiarity with the listenerE) Increased noise
Answer:
E) Increased noise
Explanation:
The answer is that the condition that would necessitate the use of non-verbal communication instead of verbal communication is increased noise because the noise is any type of sound that affects the verbal communication and in a case of increased noise, it could be necessary to use non-verbal communication to be able to deliver a message.
The other options are not right because they don't affect the verbal communication in a way that forces you to use non-verbal communication.
JG Asset Services is recommending that you invest $1,275 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures
Answer:
The amount that will be received when CD matures is $1514.30
Explanation:
To calculate the amount that will be received at the maturity of the CD, we simply need to calculate the future value of the invested amount using annual compounding. The formula for the future value that we will use is,
Future value = Present value * (1+r)^t
Where,
r is the rate of interestt is the time in yearsFuture value = 1275 * (1+0.035)^5
Future value = $1514.30
What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2018?
Answer: $600,000
Explanation;
Pension Liability refers to the amount the company is to pay its employees a pension less the actual amount it has to pay its employees.
It is therefore expressed as;
= Obligations - Assets
In this scenario that would be;
= Projected Benefits Obligation - Plan Assets (at Fair Value)
= 1,200,000 - 600,000
= $600,000
An investor with a balanced domestic portfolio who is looking for diversification and returns in the event that U.S. markets do not continue to expand, would be most interested in investing in which of the following?
a. Equities in Emerging Markets
b. Equities in U. S. companies with international appeal
c. Equities in U. S. companies involved in exports of their products
d. Equities in Italian wine exporting companies
Answer:
Option A, Equities in Emerging Markets, is the right answer.
Explanation:
A person who is not interested to invest in the U.S market or company then will not prefer the U.S companies for their diversification because the economic contraction in the U.S will affect these companies. He will be willing to invest in the equities in the emerging market. Moreover, he will not invest only in the foreign company because it will not provide him with the diversification. Therefore, the option “a” is correct.
Calculate the inventory turns when Sales is $200,000,000, Cost of sales is $160,000,000, Average inventory is $ 40,000,000 and Carrying cost is 12%
68646868855764566799%%$^€$^__
Answer:
68646868857764564566799
Phoenix Agency leases office space for $7,000 per month. On January 3, Phoenix incurs $65,000 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Phoenix has 5 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.
Answer:
$13,000
Explanation:
The computation of the expense recorded in the first year is shown below:
Here the leasehold improvement should be depreciation by considering the lease term left or the estimated useful life whichever is lesser
Now the depreciation expense is
= Improvement cost ÷ lease term left
= $65,000 ÷ 5 years
= $13,000
hence, the amount of expense for the first year is $13,000
In the BCG Growth Share Matrix, the suggested strategy for Stars is to ________.
A. milk them to finance other businesses
B. invest large sums to gain a good market share
C. maintain position and after the market growth slows use the business to provide cash flow
D. not invest in them and to shift cash flow to other businesses
Answer:
C. maintain position and after the market growth slows use the business to provide cash flow
Explanation:
Stars in the BCG Growth Share Matrix refer to the goods that have a big market share and bring more revenue to the company but they also require to invest a lot of money. Because of that, companies try to keep their place as long as possible but when the market slows down, they take the cash flow from the product to increase their profits. According to that, the answer is that in the BCG Growth Share Matrix, the suggested strategy for Stars is to maintain position and after the market growth slows use the business to provide cash flow.
The other options are not right because milk them to finance other businesses and not invest in them and to shift cash flow to other businesses is not a suggested strategy for starts because they can provide a lot of money. Also, invest large sums to gain a good market share is not right as stars are not always able to generate a positive cash flow and you can end up losing a big amount of money.