Answer:
Loss-leader pricing
Explanation:
Loss leader pricing can be defined as a marketing strategy that entails selecting some retail products that is going to be sold below cost. This means that the retailer will not make any profit from the products being sold because the goods are being sold below the actual price.
This is done in order to get customers in the door. It is a method of enticing buyers to purchase your products.
This stategy attracts news customers because goods are being sold at significant discount to market price.
Answer:
3. 5,110,000 and 5,170,000
Explanation:
Number of shares to be used in computing basic earnings per share
= 4800000*12/12 + 200000*9/12 + 4800004/12
= 4800000 + 150000 + 160000
= 5,110,000
Number of shares to be used in computing dilute earnings per share
= 4800000*12/12 + 200000*9/12 + 4800004/12 + (6000000/1000)*40*3/12
= 4800000 + 150000 + 160000 + 60000
= 5,170,000
Therefore, The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2018 is 5,110,000 and 5,170,000.
In here, we can say that we are looking for the nominal interest rate. Given is the real interest rate which is 5% and the inflation rate of 10%. The nominal rate of interest is real interest rate plus the inflation rate. Savers will now require an interest rate of 15%
Answer:
Economic expansion
The economy is expanding which means that people have access to higher wages. This will enable them to save more.
- More demand for funds among borrowers
As the economy is expanding, people will borrow to consume more as well as to invest which will lead to a higher demand for borrowed funds.
- Increase in price of products
With more people able to afford goods and services, prices will increase as there is now more demand for those goods.
Economic recession
With the economy shrinking, companies will be making less profit and will have to layoff workers to reduce their costs.
- Increase in government borrowing
In a recession, the Government will have to spend more to prop up the economy like the US Government did during this pandemic by providing stimulus packages. This spending is supported by borrowing.
Answer: $57,101.73
Explanation:
First find the present value of the cash inflows. The $32,000 is a constant payment so is an annuity. The net working capital will be realized at the end of the project as well.
Present value of cash inflows = (32,000 * Present value interest factor of an annuity, 4 years, 12%) + 3,000/ (1 + 12%)⁴
= (32,000 * 3.0373) + 1,906.55
= $99,101.73
NPV = Present value of inflows - Outflows
= 99,100.15 - (39,000 + 3,000)
= $57,101.73
