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1 year ago

Price is taken to be a given by an individual firm selling in a purely competitive market because.

1 answer:

6 0

Price is taken to be a given by an individual firm selling in a purely competitive market because each seller supplies a negligible fraction of total market.

Purely competitive market refers to a marketing situation in which there are a large number of sellers of a product which cannot be differentiated selling a standardized product and therefore, no single firm has a significant influence on the product price. It is characterized, furthermore, by ease of entry for new companies into the market and perfect market information. Hence, the sellers in such a market are considered to be price takers. Examples of purely competitive market are agricultural products such as wheat or corn.

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Carson Corporation stock sells for $35 per share, and you’ve decided to purchase as many shares as you possibly can. You have $5

snow_tiger [21]

Answer:

2041 shares

Explanation:

Maximum amount for investment = $ 50 000 / 70 % = $ 71428.571

maximum number of shares = $ 71428.571 / $ 35 = 2040.812 approx 2041 shares

6 0

3 years ago

Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 25 years to maturity that is

Snezhnost [94]

Answer:

Pretax = 5.61%

After tax = 4.26%

Explanation:

The cost of debt will be the Yield to maturity of the bonds.

91 = present values of the 25 year annuity + present value of the maturity

There is no formula for exact YTM

we can either use excel or calculate by approximation:

In this case we will calcualte the YTM by aprroximation

$YTM = 2\times (\frac{C + \frac{F-P}{n }}{\frac{F+P}{2}})$

C= 25 cuopon payment 1,000 x 5% / 2 becayse paymenr are semiannually

F= 1000 the face value is 1,000

P= 910 the present value or market value is 91% of the face value

n= 50 25 year at 2 payment per year

$YTM = 2 \times (\frac{25 + \frac{1000-910}{50 }}{\frac{1000+910}{2}})$

dividend 26.8

divisor 955

YTM 5.6125654%

This will be the pretax cost of debt

then we calculate the after tax cost of debt

pre-tax cost of debt ( 1 - t ) = after-tax

5.61% ( 1 - .24 ) = 4,2636

6 0

3 years ago

Sales of mobile phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak

m_a_m_a [10]

Answer:

maturity

Explanation:

Based on the scenario being described within the question it can be said that the mobile phones are in the maturity stage of the product life cycle. This stage is classified as having past the drastic growth phase in which sales begin to slow down until full maturity is met and sales ultimately begin to die down. Leading to the decline stage.

5 0

3 years ago

Read 2 more answers

It is important for modern firms to build and maintain ______ by conducting ethical and transparent transactions.

r-ruslan [8.4K]

The singular thing which is important for modern firms to build and maintain by conducting ethical and transparent transactions is:

Consumer trust

<h3>What is Consumer Trust?</h3>

This refers to the belief which a customer has in a particular business, usually because of its ethical and transparent practises.

With this in mind, we can see that if modern firms fail to build this consumer trust, then they stand the risk of losing their customer base to their competition.

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4 0

2 years ago

hen a board of directors determines a specific profit goal, marketing managers usually implement a(n) Blank______ objective.

AveGali [126]

When a board of directors determines a selected profit goal, advertising managers commonly enforce a target return objective.

Target return Objective-

The goal return objective is to offer sufficient spending cash and hold the value of the portfolio after taking into consideration taxes and inflation.

The target return goal matters as it determines how the target return is calculated. Some people, which includes retirees, live on profits from their investment portfolios. A target return is actually the charge of return on an investment that a person or enterprise desires to earn. People have distinctive motives or goals in thoughts once they select to apply target returns as an investment tool. The target return goal matters as it determines how the target return is calculated.

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7 0

1 year ago