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2 years ago

In some industries, low switching costs can act as an important barrier to entry.

Business

1 answer:

Mazyrski [523]2 years ago

5 0

FALSE

In some industries, high switching costs can act as an important barrier to entry.

Barrier to entry is defined as conditions which prevent companies to enter in a market. It limit the competition as no new firm easily join the market.

Some examples of the barrier to entry is high start-up cost, government regulations, high customer switching cost.

Business earn its profit from customers only , if customers will switch to the substitute product , then company will incur high loss. It will act as a barrier to entry.

It protects the market share. Because if no new comer join then market share will not get shared with other new comer.

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Lori's Company has the following items: cash in a checking account, $ 9 comma 000$9,000; cash in a savings account, $ 7 comm

Brut [27]

Answer:

$15,576 should appear as Cash and Cash Equivalents on the balance sheet

Explanation:

Cash and Cash Equivalents

= Cash in a checking account + Cash in saving account + High-grade government securities

= $5,000 + $7,000 + $3,576

= $15,576

Therefore, $15,576 should appear as Cash and Cash Equivalents on the balance sheet

6 0

4 years ago

Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $628,000. The curren

ArbitrLikvidat [17]

Based on the information given the levered value of the firm is $3,824,318.

First step is to calculate the Unlevered firm value

Unlevered firm value = EBIT(1 - Tax) / Cost of equity

Unlevered firm value= $628,000 x (1-.35)/.176

Unlevered firm value = $628.000×.65/.176

Unlevered firm value = $2,319,318

Second step is to calculate Levered firm value

Levered firm value = Unlevered firm value + (Tax rate× Debt))

Levered firm value= $2,319,318 + (.35 x $4,300,000)

Levered firm value= $2,319,318 +$1,505,000

Levered firm value = $3,824,318

Inconclusion the levered value of the firm is $3,824,318.

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8 0

3 years ago

Martin, a u.s. citizen, travels to mexico and buys a newly manufactured motorcycle made there. his purchase is included in?

Alinara [238K]

Martin, a US. citizen travels to Mexico and buys a newly manufactured motorcycle made there. his purchase is included in both Mexican GDP and U.S. GDP.

This is further explained below.

Generally, The gross domestic product (GDP) of a nation is a monetary measurement that is based on the market value of all of the final products and services that are produced in that nation during a certain time period.

Before being regarded as a trustworthy indication, this measure often undergoes revision because of the complexity and subjectivity inherent in its design.

In conclusion, Martin, a resident of the United States, makes a trip to Mexico in order to purchase a motorbike that was only just produced in that country. His purchase is accounted for in both the GDP of Mexico and the GDP of the United States.

Read more about GDP

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6 0

2 years ago

Dollar-cost averaging means that you buy equal dollar amounts of a stock every period, for example, $500 per month. The strategy

lana [24]

Answer:

Read the explanation below

Explanation:

Dollar-cost averaging is based on the belief that prices of stock fluctuate around a normal level. Without this notion, it will not be possible to determine what can be seen as high or low now compared to the future.

The benefits of Dollar Cost Averaging attracts investors to employ. These benefits include:

1. It contributes on a regular basis to portfolios of investment.

2. The problem of market timing is eliminated especially for investors do not have time to track the market regularly or who lack the understanding of the market.

3. The cost basis to consumers on stocks whose values decline are is reduced.

4. It is easy to set up and not expensive especially for investors with no huge amount of money to invest. Like the example in the question, it easier for a salary earner to invest $500 monthly than investing $5,000 in a day.

Despite these advantages, dollar-cost averaging has its own disadvantages, and these include:

1. It has been found out in different studies that investor that can time the market correctly and invest a lump sum amount receive a higher return in the long run than what dollar-cost averaging can fetch.

2. The transaction costs paid by the investors significantly increased because of more number of different transactions when brokerage fee is high.

I wish you the best.

7 0

3 years ago

Determine the tax consequences to Euclid from the following independent events. Round the per share answer to the nearest cent.

Levart [38]

Answer:

$100 per share

Explanation:

Complete question: <em>As a result of the stock dividend, Euclid's per share basis is $?</em>

<em />

The Total stock is 500 shares for $50,000 Basis = 50,000 / 500 = $100

Hence, Euclid's per share basis is = $100 per share

8 0

3 years ago