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2 years ago

price discrimination will occur when a firm can segment its existing and potential customers into different groups based on:

Business

1 answer:

lana [24]1 year ago

8 0

Customers whose demand has a higher degree of price elasticity will pay less.

<h3>How Does Price Discrimination Occur and types of Price Discrimination?</h3>

Price discrimination is a marketing tactic where sellers charge clients various prices for the same good or service depending on what they believe will win the customer over. A merchant that practices pure price discrimination will impose the highest price possible on each customer. The more typical types of price discrimination involve the vendor classifying clients into groups according to particular characteristics and charging each group a different price.

There are three types of price discrimination:

First-Degree Price Discrimination: when a company charges the highest price per unit of consumption.

Second-Degree Price Discrimination: when a business offers discounts for large orders or imposes various prices on customers depending on how much they eat.

Third-Degree Price Discrimination: when a business charges varied prices to various customer segments.

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Given the following financial structure for Company S for all of 2016:

Mila [183]

Answer:

Explanation:

A.)

The Basic EPS can be determined by using the formula:

$\mathtt{Basic \ EPS = \dfrac{Net \ income \ attributabe \ to\ common \ stock \ holders }{\text{common stock outstanding throughout the year}} }$

$\text{Given Net income = \$2,600,000}$

$\text{Net income available for common stock holders = }$ $\text{ Net income given less dividend}$

$\text{ to preferred holders of stock}$

$\mathtt{=$2,600,000 - $100 \times 50000\times 6\%}$

$=\$2,300,000$

$\text{Common stock} = $800,000$

∴

$\mathbf{Basic \ EPS = \dfrac{\$2,300,000}{800,000} }$

$\mathbf{Basic \ EPS = \$2.88 \ per \ common \ stock}$

B.)

The calculations for the numerator and denominator effect are:

$\text{Calculation of the effect on incremental EPS}$

Convertible on preferred stock $\mathtt{=\dfrac{500,000 \times 100 \times 6\%}{50000\times 5}}$

$=1.20$

Convertible Bond $=\dfrac{500,000 \times 8\%\times 70\%}{\dfrac{500,000}{1000\times 20}}$

= 2.80

Stock options $= \dfrac{0}{100,000- (100,000\times \dfrac{60}{80})}$

= 0

Determination of the numerator & denominator effect for each convertible securities shown above are:

Numerator (N) Denominator (D) Dilution index = N/D

Net income $2,600,000

Less: Preferred $300000

Dividend

Common stock A

Net income $2,300,000 800,000 2.875

Add: Stock

Options (B) 0 25000

Total (C) = (A + B) $2300000 825000 2.788

Add: Convertible

Bonds (D) 428000 10000

Total (E) = (C+D) $2328000 835000 2.787

Add: Convertible

Preferred Stock (F) $300000 250000

Total (E) + (F) $2628000 1085000 2.422

C.)

Particulars Dilutive Index Rank (most dilutive is 1.)

Stock Option 2.788 1

Convertible Bonds 2.787 3

Preferred Stock 2.422 2

D.)

From above, the convertibles are diluted EPS (DEPS)

$\text{ DEPS =Net income available common stockholders + net tax dividend on convertible securities}$ ÷ $\text{weighted average no. of common shares + effect of convertible stock + convertible stock options}$

$\text{DEPS (1{st} stage) for only common stock}= \dfrac{2300000}{800000} = \$2.88}$

$\text{DEPS (2{st} stage)with \ stock \ options}= \dfrac{2300000+0}{800000+25000} = \$2.788}$

$\text{DEPS (3{st} stage)with \ stock \ options \& preferred \ stock }= \dfrac{2300000+300000+0}{800000+250000+25000} = \$2.42}$

3 0

3 years ago

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally

lina2011 [118]

C. A Novation

In contract law, a novation is the cancellation of one contract and replacing it with another contract.

7 0

3 years ago

What are some examples of semantic noise words

Nostrana [21]

A water pill at first glance could be a pill with water in it; but, it is understood to be a diuretic that causes a person to lose water from his body.

6 0

3 years ago

Caruso Company's SUTA rate for next year is 2.9% because its reserve ratio falls in its state's 8% to less than 10% category [(c

zaharov [31]

Answer:

voluntary contribution $97150

Explanation:

data provided:

tax rate: 2.3%

reserve ratio- 8-10%

average payroll = $971,500

Assume voluntary contribution ="X "

From the information given in the question we have

$\frac{X}{971500} = 10$ %

here we have taken max reserve ratio i.e. 10%

$"X" = 971500*0.10$

= $97150

we know that, from the question present contribution minus benefit is equal to $93,500

hence, extra contribution = 97150 - 93500 = $3650

extra contribution = $3650

5 0

3 years ago

Quiz - Motivational Theory

lozanna [386]

Answer:

Self-Actualization and Esteem

Explanation:

According to Herzberg's theory, motivators result in personal satisfaction. Motivators come from the intrinsic conditions of the job an employee performs, e.g. recognition (employee of the month), personal growth (a promotion).

Herzberg's motivators relate to the higher levels of Maslow's pyramid, which basically deal with developing the full potential of individuals.

On the other hand, Herzberg's hygiene are related to the lower levels of Maslow's pyramid.

7 0

3 years ago