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3 years ago

________ refers to setting price based on buyers' perception of value rather than on the seller's cost.

Business

1 answer:

melomori [17]3 years ago

4 0

Answer:

Value based pricing

Explanation:

Value based pricing is a pricing strategy that includes setting a price based on how much the customer believes the product you’re selling is worth.

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A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a ra

ArbitrLikvidat [17]

Answer:

Current price of stock =$128.06

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The model is given as

P = D× g/(r-g)

P- price, D- dividend payable in year 1, r -cost of equity, g - growth rate in dividend

Cost of equity

The cost of equity can be calculated using the Capital Asset Model (CAPM).

Ke= Rf +β(Rm-Rf)

Ke =? , Rf- 6.5%, (Rm-Rf)- 1.5, β- 1.3

Ke=6.5% + 1.3× (1.5)= 8.45%

Stock price

PV of dividend in year 1 = 3.4× 1.17× 1.0845^(-1)=3.668

PV of dividend in year 2 = 3.4× 1.17^2× 1.0845^(-2) = 3.9572

<em>PV of dividend in year 3</em>

This will be done in two(2) steps:

Step 1- PV in year 2 terms

3.4× 1.17^2× 1.05/(0.0845- 0.05)= 141.651

Step 2- PV in year 0

141.6513913× 1.0845^(-2)= 120.4375

Current piece of stock = 3.668 + 3.957 + 120.4375 = 128.062

Current price of stock =$128.062

5 0

3 years ago

How do you solve for an owner's equity

olganol [36]

Answer:

add up all of the business assets and deducting all of its liabilities.

5 0

1 year ago

College football attendance, especially student attendance, has been on the decline. In 2016, home attendance at major colleg

puteri [66]

Answer:

Your opportunity cost of attending a game compared with the opportunity cost facing a college student 10 years ago is:

A) higher, because more games are televised today.

Opportunity costs are the cost of choosing one alternative from another.

In this case, when college students attend college football games they are unable to do other activities, not only while they are at the stadium or going to the stadium, but they are not able to purchase other goods. The cost of those alternatives that are lost are higher now because many college football games are televised now, before if you wanted to see a game you had to go to the game. So a student is now able to watch the game while doing other activities, or saving money for buying something else.

Can this change in opportunity cost account for the decline in college football attendance?

B) Yes, because these changes increase the opportunity cost of watching football games in person.

Even though opportunity costs do not involve actual cash payments, they are still important and individuals do consider them when they are choose one option over another. E.g. imagine if you had to choose between spending a considerable amount of money by attending a game (ticket, gas, beverages, etc.) or watching that game on TV and buying a few clothes instead or going on a date, etc. What option would you choose?

6 0

3 years ago

Logan, a 50 percent shareholder in Military Gear Inc. (MG), is comparing the tax consequences of losses from C corporations with

Musya8 [376]

Answer:

$9,840

Explanation:

In this question, we have to take the difference between the payment for S corporation and the C corporation

If Military Gear Inc is a C corporation, then the payment would be

= Ordinary income × marginal tax rate

= $84,000 × 24%

= $20,160

And, if Military Gear Inc is a S corporation, then the payment would be

= (Ordinary income - net effect) × marginal tax rate

= ($84,000 - $41,000) × 24%

= $43,000 × 24%

= $10,320

The net effect would be

= $159,000 - $118,000

= $41,000

The net payment would be

= $20,160 - $10,320

= $9,840

4 0

3 years ago

William (71), a retired single taxpayer, received a monthly pension of $2,500 ($30,000 annually). He did not contribute any afte

IceJOKER [234]

Based on the information given, it should be noted that the amount of William's pension distribution that is taxable is $30000.

From the information given, William is a retired single taxpayer and he received a monthly pension of $2,500 ($30,000 annually). He did not contribute any after-tax dollars to the plan.

It should be noted that pension is counted as a regular income for tax purposes. Therefore, the pension that'll be received by William will be a taxable income

Therefore, the taxable amount will be $30000.

Learn more about taxes on:

brainly.com/question/1657264

4 0

2 years ago