Answer:
Predatory pricing.
Explanation:
When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in predatory pricing.
Predatory pricing is a strategy used by some business owners to reduce the cost of a particular commodity or item to the lowest possible amount such that the available competitors will be driven out of business.
B) Added value
Explanation:
Added value - It is an improvement to the product or service making it more worthwhile.
Competitive advantage makes the product or service more desirable than other competitors.
In this scenario, there is no competition of the services as yet, but definitely has an added value by improving the services.
Answer: A.) $1,095
Explanation:
Bond value = $30,000
Rate = 7%
Period = 10 years
Issue price = $29,100
Bond value × rate :
30,000 × 0.07 = $2100
Semi annually:
$2100 / 2 = $1050
(Bond value - issue price) ÷ (period × 2)
($30,000 - $29,100) / (10 × 2)
$900 ÷ 20 = $45
$1050 + $45 = $1,095
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The book value of the bond at the end of year 10 is 1,160
What is the basis for determining premium amortization?
The bond premium amortization is assumed to be determined using the straight-line basis such that bond premium amortized in each year is the same for 18 years of bond investment, in other words, the year 10 bond premium amortization of 20 is the same for all other years.
Total premium on bond issuance=20*18
total premium on bond issuance=360
bond price issued price=par value+ premium=1000+360=1360
As at the end of the 10th year, bond premium amortized thus far is 20 multiplied by 10 years
bond premium amortized=20*10=200
book value of the bond at the end of year 10=1360-200
book value of the bond at the end of year 10=1,160
Find out more about bond premium on:brainly.com/question/14814327
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