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dsp73
3 years ago
14

Small athletic shoe manufacturers such as Vans have targeted niche markets and made shoes designed to satisfy the needs of diffe

rent specific groups of customers. This strategy is an example of:
A. market segmentation
B. mass customization
C. customized manufacturing
D. single chain marketing
Business
2 answers:
emmasim [6.3K]3 years ago
7 0

Answer:

A. market segmentation

Explanation:

Market segmentation may be seen as a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. Market segmentation enables companies to focus on different categories of consumers who perceive the complete value of certain products and services differently from each other .

Neko [114]3 years ago
6 0

Answer:

A. market segmentation

Explanation:

Market segmentation is a strategy in marketing which involves the division of a company’s market target into different subgroups, each consisting of potential customers that share similar characteristics and traits based on demographics, behavioral, geographic, or psychographic characteristics. This ensures a better understanding of the target market in order for efficient marketing to take place.

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Starset, Inc., has a target debt-equity ratio of 1.15. Its WACC is 8.6 percent, and the tax rate is 21 percent.
aev [14]

Answer:

a. 4.94%

b. 11.48%

Explanation:

Here in this question, we are interested in calculating the pretax cost of debt and cost of equity.

We proceed as follows;

a. From the question;

The debt equity ratio = 1.15

since Equity = 1 ; Then

Total debt + Total equity = 1 + 1.15 = 2.15

Mathematically ;

WACC = Cost of equity x Weight of equity + Pretax Cost of debt x Weight of debt x (1-Tax rate)

Where WACC = 8.6%

Cost of equity = 14%

Weight of equity = 1/(total debt + total equity) = 1/(1+1.15) = 1/2.15

Pretax cost of debt = ?

Weight of debt = debt equity ratio/total cost of debt = 1.15/2.15

Tax rate = 21% = 0.21

Substituting these values, we have;

8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)

8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)

Pretax cost debt = (8.6%-6.511628%)/(1.15/2.15 x (1-21%))

Pretax cost of debt = 4.94%

b. WACC = Cost of equity x Weight of equity + After tax Cost of debt x Weight of debt

8.6% = Cost of equity x 1/2.15 + 6.1% x 1.15/2.15

Cost of equity = (8.6%-3.26279%)/(1/2.15)

Cost of equity = 11.48%

6 0
3 years ago
hailey corporation pays a constant $13.50 dividend on its stock. the company will maintain this dividend for the next 8 years an
Elena-2011 [213]

The current share price is approximately $69.47

<h3>What is the Share price?</h3>
  • The cost of one share of a group of marketable equity shares of a firm is known as the share price.
  • Simply put, the stock price is either the lowest possible price or the maximum price someone is ready to pay for the stock.
  • Analysts estimate the behavior of asset prices, especially share prices in stock markets, using random walk approaches in economics and financial theory.
  • The share price method is predicated on the idea that investors behave logically and impartially and constantly appraise the value of an asset based on expectations for the future.
  • In such a scenario, the price is influenced by all available information and is only subject to alteration in response to the release of new information.

Share price = $13.5 × Present value of annuity factor(11%,8)

Share price =$13.5 × 5.146122761

Share price =$69.47(Approx).

Hence, the current share price is approximately $69.47

To learn more about Share price from the given link

brainly.com/question/28546868

#SPJ4

5 0
1 year ago
Which of the following is not a product cost under variable costing?
irakobra [83]
There are no options
3 0
3 years ago
Property taxes typically pay for
zheka24 [161]
-animal control
-local road maintenance
-police protection
-fire service
-sewage treatment
-safe drinking water
-safe building regulations 
3 0
3 years ago
Suppose tickets for a regular seat at Super Bowl XXXVII cost just $500 when bought at face value (the cost at the box office). S
kakasveta [241]

Answer:

e. The monetary price paid to obtain the ticket.

Explanation:

The opportunity cost represent the best rejected alternative of the resources used.

If a person goes to the Super Bowl, the opportunity cost is any other entertainment show it renounce to see and any other use of the 500 dollar it used to acquire the ticket.

6 0
3 years ago
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