Wendell company owns 28% of the common stock of porter company and accounts for the investment using the equity method. assuming that wendell company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the a. investment plus wendell's share of porter's net income earned since the investment was purchased minus the total amount of dividends wendell has received from porter since the investment was purchased b. investment plus wendell's share of porter's net income earned since the investment was purchased c. investment only d. investment plus the total amount of dividends wendell has received from porter since the investment was purchased

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.