Answer:
D. skimming
Explanation:
Skimming is the pricing strategy where a company charges the highest price that customers are initially willing to pay and then lowers the price over time. This fits the scenario here, as Mia starts out by pricing her products high. None of the other strategies involve starting out with a high price to turn a short-term profit.
Answer:
B. adult; elastic.
Explanation: As wage increases, the adult worker will want to give more labor, which means the supply of labor will be increased and the demand will reduce.Wage increase is proportional to the increase in the supply of labor, most workers or laborers will want to give more or supply more labor and the employers will try to reduce their demand for labor. Elasticity of Labor supply is assumed to be greater than 1 as wage increases.
Answer:
$150,300
Explanation:
The computation of the correct initial cash flow is shown below:
= Capital expenditure + net after taxes + initial investment in inventory
= $33,000 + $112,000 + $5,300
= $150,300
The net after taxes is also term as opportunity cost
And, the initial investment in inventory is also term as change in working capital
All other information which is given is not relevant. Hence, ignored it
Answer:
10.59%
Explanation:
First, find next year's dividend using dividend discount model formula;
D1 = D0 (1+g)
D0 = current dividend paid = 1.70
D1 = expected next year's dividend
g = growth rate = 2.10% or 0.0210 as a decimal
therefore. D1 = 1.70 (1+0.0210)
D1 = 1.70 *1.0210
D1 = 1.7357
With the current price of $20.44, find the cost of stock (r) ;
r =
P0 = Current price
r =
As a percentage, the cost of stock is 10.59%
Answer:
(a) Retained earnings – EQUITY
(b) Sales – REVENUES
(c) Additional paid-in capital – EQUITY
(d) Inventory – ASSETS
(e) Depreciation – EXPENSES
(f) Loss on sale of equipment – EXPENSES
(g) Interest payable – LIABILITIES
(h) Dividends – EQUITY
(i) Gain on sale of investment– REVENUES
(j) Issuance of common stock – EQUITY
Explanation:
ASSETS - Inventory: A set of goods destined for sale in the main activity of the company
LIABILITIES - Interest payable: interests whose period has already expired and therefore is a debt
EQUITY - <em>Retained earnings:</em> positive results that the company has given a particular destination (for example, the purchase of a fixed asset, therefore they will not be distributed) - <em>Additional paid-in capital:</em> When issuing the shares, the shareholders pay more than the nominal value of the share. In this account, this additional value is placed - <em>Dividends:</em> earnings reserved for distribution among shareholders - <em>Issuance of common stock:</em> nominal value of shares when issued
REVENUES - <em>Sales:</em> income obtained from the main activity of the company - <em>Gain on sale of investment:</em> results obtained by investments that the company has
.
EXPENSES - <em>Depreciation:</em> Represents the wear and tear of the use of fixed assets over time - <em>Loss on sale of equipment:</em> When a fixed asset is sold and its net book value (historical cost - accumulated depreciation) is lower than that obtained by its sale, the loss for this operation is placed in this account