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natita [175]
3 years ago
8

Disruptive innovations don't need to perform better than incumbents; they simply need to perform well enough to appeal to their

customers (and often do so at a lower price). True False
Business
1 answer:
seropon [69]3 years ago
7 0

Answer:

True

Explanation:

Disruptive innovation refers to a technological change which adversely hampers the existing operations of an industry or it's players. For instance, the advent of USBs and compact discs affected the industry of magnetic tapes and audio cassettes.

Another latest example of disruptive innovation being Netflix which has kind of disrupted the normal operations and profitability of television channels.

Such disruptive innovators do not require to focus on outdoing competitors performance. All they need to take care of is they perform good enough to appeal and retain their customers.

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Belvedere Corporation had a balance in its Equipment account on January 1, Year 1 of $341,200. During the year, equipment origin
Varvara68 [4.7K]

Answer:

$56,600.00

Explanation:

The amount the company spent on purchase of additional equipment during year 1 can be ascertained using the formula below:

amount spent on additional equipment=ending balance of equipment-(beginning balance-cost of equipment sold)

ending balance of equipment is  $304,700

beginning balance is $341,200

cost of equipment sold is $93,100

amount on additional equipment=$304,700-($341,200-$93,100)=$56,600.00  

5 0
3 years ago
Selling the bonds at a premium has the effect of a. raising the effective interest rate above the stated interest rate b. causin
Andreyy89

Answer:

B. causing the interest expense to be lower than the bond interest paid

Explanation:

3 0
3 years ago
Bond A has a 9% annual coupon, while Bond B has a 7% annual coupon. Both bonds have the same maturity, a face value of $1,000, a
harina [27]

Answer:

E

Explanation:

Since the annual coupon, that is the discount enjoyed on this service is higher for A than B that is 9% against 7%. Bond A's capital gains yield is greater than Bond B's capital gains yield.

6 0
3 years ago
Read 2 more answers
Targaryen Corporation has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt.
Juli2301 [7.4K]

Answer:

  • a. What is the company’s WACC?

R_Wacc =  13% (65%) + 5% (5%) + 6% (30%) * (1-0,25) =  10,05%

  • b. What is the aftertax cost of debt?

The aftertax cost of debt is:    

R_Debt :  (1 - 0,25) x 6% = 4,50%

Explanation:

The WACC it's defined by the formula :

WACC: E/V*Re + D/V*Rd *(1-0,25)

Re:   13,00%  Cost of Common Equity    

Re:   5,00%  Cost of Preferred STOCK  

Re:   6%     Cost of Debt  

E/V:   65%   Percentage of financing that is Common Equity  

PS/V:   5%     Percentage of financing that is Preferred Stock  

DB/V:   30%    Percentage of financing that is Debt  

Tax:  25%    Corporate tax rate  

Now we have all of the components to calculate the WACC.

The WACC is:      

R_Wacc =  13% (65%) + 5% (5%) + 6% (30%)*(1-0,25) =  10,05%  

The aftertax cost of debt is:    

R_Debt :  (1 - 0,25) x 6% = 4,50%

5 0
3 years ago
Suppose monetary neutrality holds and velocity is constant. A 5 percent increase in the money supply increases the price level b
Alex73 [517]

Answer:  Increases the price level by 5 percent

Explanation:

Monetary Neutrality is a theory in Economics that posits that when there is a change in money supply in an economy, the only variables affected are the nominal ones like price level and wages and Real variables like GDP and employment are not affected.

It holds that when there is an increase in money supply, there is an equivalent increase in Price level as well because the value of money has fallen by the rate of the monetary increase. The Price level rising at the same rate is to compensate.

A 5 percent increase in the money supply will therefore increase the price level by 5 percent.

4 0
3 years ago
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