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2 years ago

What pricing strategy could work well in any market, primarily by generating buyer interest?

1 answer:

3 0

Any market could benefit from the pricing approach known as price elasticity of demand, particularly if it can attract customers.

How a change in price impacts consumer demand is assessed using the price elasticity of demand.

A product is deemed inelastic if people continue to buy it in spite of a price increase (such as with cigarettes and fuel).

Contrarily, elastic goods are subject to price changes (such as cable TV and movie tickets).

The formula: % Change in Quantity % Change in Price = Price Elasticity of Demand can be used to determine price elasticity.

You can determine whether your product or service is responsive to price changes using the idea of price elasticity. Your product should ideally be inelastic, meaning that demand won't change even if prices do.

Learn more about price elasticity of demand here.

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Driver Products recently paid its annual dividend of $2, and reported an ROE of 15%. The firm pays out 50% of its earnings as di

iragen [17]

Answer:

$29.70

Explanation:

Retention ratio = 1 - payout ratio

= ( 1 -0.5 )

= 0.5

Growth rate, g = ROE × Retention ratio

= 0.15 × 0.5

= 0.075

= 7.5%

Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]

= 2.5% + 1.44 × (11% - 2.5%)

= 14.74%

Intrinsic value = $\frac{\textup{D1}}{\textup{(Required return-Growth rate)
}}$

= $\frac{\textup{2}\times(1+0.075)}{\textup{(0.1474-0.075)
}}$

= 29.69 ≈ $29.70

5 0

3 years ago

On January 2, 2019, Twilight Hospital purchased a $96,400 special radiology scanner from Crane Inc. The scanner had a useful lif

Aneli [31]

The preparation of the incremental analysis of Twilight hospital is presented below:

Particulars Retain scanner Replace scanner Net income

Annual

operating cost $318,000 $243,000 $75,000

($106,000 × 3) ($25,000 × 3)

New

scanner cost $110,000 -$110,000

Old scanner salvage -$45,500 $45,500

Total $318,000 $307,500 $10,500

In this way, the incremental analysis should be prepared.

Learn more about the salvage value here: brainly.com/question/15711481

4 0

3 years ago

For each separate case, record an adjusting entry (if necessary). Barga Company purchases $32,000 of equipment on January 1. The

scoundrel [369]

Answer:

Equipment:

Dr. Cr.

Depreciation Expense $5,520

Accumulated Depreciation $5,520

Land:

Land never depreciates, so there is no adjusting entry for the Land purchased on year end.

Explanation:

Year end is not given in the data so, it is assumed the December 31 is the end of the year

Equipment

Depreciation for the year = ( Purchase price - Residual value ) / useful life

Depreciation for the year = ( $32,000 - $4,400 ) / 5 years

Depreciation for the year = $5,520

8 0

3 years ago

Bank deposits that can be withdrawn on demand in various ways, including with a check or debit card, are called:

Nady [450]

Answer:

Demand deposits is the answer of your question

4 0

3 years ago

Brunette Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $180,000. Th

diamong [38]

Answer:

No, as the net present value comes in negative

Explanation:

As we know that

Net present value = Present value of cash inflows - Initial investment

where,

Present value os $163,000

And, the initial investment is $180,000

Now placing these values to the above formula

So, the net present value is

= $163,000 - $180,000

= -$17,000

Therefore the company should not accept the project as net present value is in negative that is -$17,000

6 0

3 years ago