All categories

3 years ago

Arriving at a cost structure that is both profitable and hard for potential followers to match is called

1 answer:

5 0

Arriving at a cost structure that is both profitable and hard for potential followers to match is called a <u>Price Minus</u>.

<h3>What is a Price Minus?</h3>

A Price Minus is a pricing strategy that deducts some amount from the market price to attract more customers and increase profitability to the detriment of competitors.

A price minus can be used as a market penetration strategy.

Thus, using a price minus, a company can arrive at a cost structure that achieves profitability and deters potential competitors without instigating a price war.

Learn more about pricing strategies at brainly.com/question/27124956

You might be interested in

Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently sell

lora16 [44]

Answer:

A)grow = 6.33%

Nxt year dividends(rounded to nearest cent): $4.31

B) The firm receives 93% (1 - flotation cost) of the market value of the shares so It receives the 42.06 per share

C) stock return 15.86%

D) required rate of return (with flotation): 16.57%

Explanation:

<u>We solve for the constant grow rate:</u>

$\frac{Div_0}{(1 + grow)^{time} } = Div_{time}$

$\frac{2.98}{(1 + grow)^{5} } = 4.05$

$grow= \sqrt[5]{4.05/2.98} -1$

grow= 0.063280262

<u>Dividends for the sixth year:</u>

4.05 x (1.0633) = 4,306365

42.06 / (1 - flotation cost) = 45.23

flotation cost = 1 - 42.06 / 45.23 = 0.07 = 7%

rate of return without flotation:

4.31/45.23 + 0.0633 = 0.158590736 = 15.86%

solving for return considering the existence of flotation cost:

$\frac{divends}{return-growth} = Intrinsic \: Value$

$\frac{divends}{Price} = return-growth$

$\frac{divends}{Price} + growth = return$

$$Cost of Equity =\frac{D_1}{P(1-f)} +g$

D1 4.31

P 45.23

f 0.07

g 0.0633

$$Cost of Equity =\frac{4.31}{45.23(1-0.07)} +0.0633$

Ke 0.165763157 = 16.57%

6 0

3 years ago

Just before each prediction comes true, macbeth realizes that it is accurate and that he cannot escape his fate. how does he cop

faltersainse [42]

He starts to slowly realize what he's done and slip into madness and depression. He starts understanding how much evil he's committed and it doesn't suit him, and it all climaxes when he discovers who the man not born of a woman is and how the forest is moving.

4 0

4 years ago

Which of the following is a situational characteristics that influences the choice of leadership style for a supervisor?

pav-90 [236]

Answer:

The correct answer is letter "D": Interest in solving a problem.

Explanation:

Situational leadership is exercised by managers when they need to adapt their method of working to the current situation their companies are facing. The key point is to get to the solution of the problem. Thus, the leader does not wait for the subordinates to adapt to his or her leadership style but is the leader who proactively takes a step towards a change.

3 0

4 years ago

Who is the primary regulator over the<br> mortgage banking industry?

Pie

The primary regulator over the mortgage banking industry in the United States is the Office of the Comptroller of the Currency (OCC).

<h3>What does the Office of the Comptroller of the Currency (OCC) do?</h3>

It was established by the U.S. government to oversee all national banks in the United States.

This means that it is the regulatory agency for any type of banking on the national level including mortgage banks.

Find out more on the Office of the Comptroller of the Currency (OCC) at brainly.com/question/1075384.

5 0

2 years ago

Wayne has been employed as a trainee in a print shop for one month and receives less than minimum wage for his work. According t

ipn [44]

Answer:

Explanation below

Explanation:

When organizations are looking at hiring interns, they should make sure it does not go against the laws of the Fair Labor Standards Act (FLSA) which broadly defines what it means to employ someone and remained silent regarding whether interns should be exempted from minimum wages.

FLSA provides that if your company like that of Wayne in the question, benefits from the use of interns they hired, then they must pay them a sum that is equivalent to the minimum wage.

But if the intern does not do any work that directly benefits the organization, but just there to learn and watch how things are going, then it can be justified in not paying them at all.

so Wayne's rights have been violated since the wage was below the minimum wage.

4 0

3 years ago