Answer:
C
Explanation:
A. If there is a decrease in the price of a substitute good then people will prefer that good because is cheaper than, in this case, antibacterial soap. This will cause a change in demand, because consumers decide to buy less antibacterial soap.
B. The campaign will affect consumers because now there would be less people interested on buying the antibacterial soap. This will cause a change in demand.
C. An increase in the cost of plastic bottles used for antibacterial soap will affect directly to producers because now the total cost of production will increase and for instance they will produce less. This will cause a change in supply
Answer:
$287.01
Explanation:
The 2 stage dividend discount model would be used to determine the current value of the stock.
first stage
Present value in year 1 = (1.6 x 1.16) / 1.071 = 1.73
Present value in year 2 = (1.6 x 1.16²) / 1.071² = 1.88
Present value in year 3 = (1.6 x 1.16³) / 1.071³ =2.03
Present value in year 4 = (1.6 x 1.16^4) / 1.071^4 = 2.20
second stage
[ (1.6 x 1.16^4) x (1.06) ] / (0.071 - 0.06) = 279.17
Value of the stock = 1.73 + 1.88 + 2.03 + 2.20 + 279.17 = $287.01
The ability to persuade and background knowledge about the product. this is important because if a customer is having a hard time being convinced to buy the product this salesperson can try to use their persuasive abilities and the salesperson can incorporate their own first hand experiences with the product if they have background knowledge
Expected sales in units 20,000 18,750 and Expected sales in dollars $80,000 $75,000
second quater of 2020,third quater of 2020
Sales—2019 is 16,000 15,000
Plus projected 25% increase for 2020 4,000 3,750
Estimated sales volume—2020 20,000 18,750
× Estimated unit selling price—2020 $ 4.00 $ 4.00
Estimated sales dollars—2020 $ 80,000 $ 75,000
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Based on the calculation below, incremental after-tax operating cash flow is $675,000
<h3>How to calculate incremental after-tax operating cash flow</h3>
This can be calculated as follows:
Profit before interest and tax = Revenue - Operating costs – Depreciation = $1,000,000 - $200,000 - $300,000 = $500,000
Operating income = Profit before tax – (Profit before tax * Tax rate) = $500,000 – ($500,000 * 25%) = $375,000
Therefore, we have:
Incremental after-tax operating cash flow = Operating income + Depreciation = $375,000 + $300,000 = $675,000
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