Answer:
C) $1,200
Explanation:
Annuity Next year = D = $60
Interest rate= r = 9%
Growth rate = g = 4%
Use Following formula to calculate Present value of growing perpetuity:
Present Value = annuity payment next year / ( Interest rate - Growth rate )
PV = D / ( r - g )
PV = $60 / ( 9% - 4% )
PV = $60 / 5%
PV = $60 / 0.05
PV = $1,200
So the correct option is C) $1,200.
Answer:
The correct answer is letter "C": Cut your expenses by an amount greater than your deficit.
Explanation:
In case there is a deficit in your budget, it means your expenses are higher than your net income. An adjustment must be made in such circumstances. To bring back the balance in your budget, <em>you should cut your expenses by an amount higher than the amount of the deficit</em>. Otherwise, you could increase your income but keeping your expenses at the same level.
Answer:
The correct answer is the option A: cost-focus.
Explanation:
To begin with, a <em>cost-focus strategy</em> is the name given to a type of strategy defined by Michael Porter in competitive advantage in order to establish a strategy whose main purpose is to focus on a low price regarding the prices of the competitors in a narrow market. Therefore that in this case Ski Safety is pursuing a cost-focus strategy because the company is looking forward to compete in a narrow market thanks to a low price.
Answer: Supply of T-shirts decreasing
Explanation:
If the supply of T-shirts decreases, the equilibrium quantity of t-shirts being supplied to the market will decrease as well. Assuming that demand stays the same, the leftward shift of the supply curve will intersect with the demand curve at a higher equilibrium price.
This is simply because as the t-shirts are in short supply, people will be willing to pay more to have them as they are not as widespread as before.