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xz_007 [3.2K]
3 years ago
15

Suppose the price increases from $30 to $40. demand is

Business
1 answer:
matrenka [14]3 years ago
7 0
The demand for the product must have increased 
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Which one of the following is an argument in favor of a low dividend policy? Few, if any, positive net present value projects ar
g100num [7]

Answer: The tax on capital gains is deferred until the gain is realized

Explanation:

The TAX DIFFERENTIAL VIEW of DIVIDEND POLICY is a notion that states that shareholders generally prefer capital gains fo dividend payouts because capital gains are taxed at a lower rate than dividend payouts.

Therefore they would like to pay less tax on dividends and instead wait until they make a capital gain as the taxes on that are less and are only charged after the gain is realized.

This translates to less dividends being paid by companies that follow this logic therefore the 4th option is correct.

4 0
3 years ago
John Doe estimates that the price elasticity of demand for new SUVs to be 0.75. If the price of SUVs rose by 15%; would the quan
Sphinxa [80]
If the coefficient of demand for the SUV is 0.75 this means that it has a relatively inelastic demand (<1). This means that there is only a little change in demand when prices change. Elastic demand (>1) on the other hand has greater changes in demand when prices change; they have lots of substitutes.

So when the price of SUV rise by 15%, and it has a coefficient of 0.75, we can expect only 11.25% decrease in its demand. Still very small. This is because SUVs do not have many substitutes for it.

Formula: (x/15%)=0.75
Then simply solve for x -> x = (0.75)(0.15) = 11.25%
3 0
2 years ago
Which objective best describes you at work modest or optimistic
jok3333 [9.3K]
I think its optimistic
8 0
3 years ago
Tad's tackle shop has a potential investment of $750,000 which generated a depreciation tax shield of $35,000 and a tax rate of
Bezzdna [24]
<span>Potential investment of the Tackle shop = $750000 Depreciation Tax Shield = $35000 Tax Rate for 2016 = 20% => T = 0.2 So we have a equation for depreciation, which goes like Depreciation Tax Shield = T(Depreciation ) => 35000 = 0.2(Depreciation) So the Depreciation = 35000/0.2 which gives $175,000 Depreciation = $175,000 So C is correct.</span>
8 0
3 years ago
Mont Blanc uses a differentiation strategy that focuses on the social and emotional aspects of their product to appeal to a spec
Allisa [31]

Answer:

an engraving service for pen owners who may wish to will their pens to loved one.

Bic is a large publicly traded company with significant financial resources.

Explanation:

Mont Blanc uses differentiation strategy to address to consumer social and emotional needs. The best strategy will be to provide pen with name or a special message engraved in the pen according to the consumer needs. This will focus on consumer social needs and pen owners will love to will their pens to their loved ones.

Bic is large publicly traded company which has significant financial resources available to it. Bic will not wish to compete with Mont Blanc as it will require financial resources to capture its target market. Bic pens are cheaper and consumers are attracted to it because of its low price and ease in availability.

4 0
3 years ago
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