Ask question

Ask question

All categories

1 year ago

13

In head-to-head positioning a company positions its product to compete directly against competitor's products, while Blank______

positioning allows for more indirect competition.

1 answer:

Juli2301 [7.4K]1 year ago

5 0

Answer:

differentiation

Explanation:

You might be interested in

Eric receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real intere

MArishka [77]

Solution :

Given :

The bonds offer a $\text{real interest rate}$ of 4.5% per year

Tax rate = 10% = 0.10

Inflation rate = 2

$\text{Nominal interest rate}$ = $\text{real interest rate}$ + $\text{inflation rate}$

$\text{Nominal interest rate}$ = 2 + 4.5

= 6.5

$\text{After tax nominal rate}$ = $\text{Nominal interest rate}$ $\times (1-\text{tax rate})$

$\text{After tax nominal interest rate}$ = $6.5 \times (1-0.10)$

$=6.5 \times 0.90$

= 5.85

After tax real interest rate = $\text{after tax nominal rate}$ - $\text{inflation rate}$

= 5.85 - 2.0

= 3.85

$\text{Inflation rate}$ = 7.0

$\text{Real interest rate = 4.5}$

$\text{Nominal interest rate}$ = $\text{real interest rate}$ + $\text{inflation rate}$

= 7 + 4.5

= 11.5

$\text{After tax nominal interest rate}$ = $\text{Nominal interest rate}$ $\times (1-\text{tax rate })$

$=11.5 \times (1 - 0.10)$

$=11.5 \times 0.90$

= 10.35

$\text{After tax nominal interest rate}$ = 11.5 x (1 - 0.10)

= 11.5 x 0.90

= 10.35

$\text{After tax nominal interest rate}$ = $\text{after tax nominal rate}$ - $\text{inflation rate}$

= 10.35 - 7.0

= 3.35

Putting all the value in table :

$\text{Inflation rate}$ Real interest Nominal interest After tax nominal After tax

rate rate interest rate interest rate

2.0 4.5 6.5 5.85 3.85

7.0 4.5 11.5 10.35 3.35

Comparing with the $\text{higher inflation rate}$ , a $\text{lower inflation rate}$ will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.

7 0

3 years ago

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected retur

Bezzdna [24]

Answer:

e. None of the above.

Explanation:

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due <u>due to new information related to the stock"</u>. This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.

3 0

3 years ago

Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activ

olya-2409 [2.1K]

Answer:

B) = $38.44

Explanation:

<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.</em>

Activity rate is calculated as:

<em>Activity cost for the period / Total cost drivers for the period</em>

<u><em>Activity rate for supporting customers:</em></u>

<em>The appropriate cost driver to allocate supporting customer activity is the number of customers as given. This is so because it is most likely that the number of customers served will be a major factor that influences the supporting customers activity costs. </em>

<u><em>Activity rate for supporting customers </em></u>

= Supporting customers overhead/total number of customers

= $34,600/(600+300)

= $38.44

5 0

3 years ago

Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0

Tatiana [17]

Answer:

See explanation

Explanation:

Armstrong Co.

Multi-step Income Statement

For the year ended, December 31, 20YY

Sales $755,000

<u>Less: Cost of merchandise sold (330,000)</u>

Gross Profit $425,000

Less: Operating expenses

Administrative expenses $35,000

Selling expenses $50,000

<em><u>Total operating expenses $85,000</u></em>

Income from operation $340,000

Other revenue and expenses:

Rent Revenue $25,000

interest expense ($30,000)

<u>Total other revenues (expenses) $(5,000)</u>

Income before taxes $335,000

<u>Less: Income Tax 0</u>

Net Income (loss) $335,000

That is the appropriate way to prepare a multi-step income statement

3 0

2 years ago

Drag the Low risk and High risk project points so their expected rates of return are 9% and 11%, respectively. If you could choo

valkas [14]

Answer:

a. Project Low because its expected rate of return is higher than its WACC

Explanation:

Weighted Average Cost of Capital WACC determines firms cost of capital. It includes all sources of finance which are included in firm capital structure. The expected rate of return is the rate at which a project is able to generate return or benefits. For any project to be beneficial, its expected return should be higher than its WACC. We will select project Low because its expected rate of return is higher than its WACC.

6 0

3 years ago