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Analyzing the profitability of Shang-Wa can be useful to TEC in making the appropriate decision.
“One of the most difficult attributes of a firm to conceptualize and measure is profitability. In a general sense, accounting profits are the difference between revenues and costs” (Jaffe, Ross, Westerfield, 2005, p. 37).
Dividend Growth Model
In order to make the best decision in acquisition, Lester Electronic can utilize the dividend-growth model to see the potential growth of both companies. This will provide the company with model that will enable the company and the shareholders an opportunity to see how the acquisition will profit them...
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