Which shift in the demand curve most likely to describe a company in a monopolistically competitive market that begins to spend more on advertising? An upward shift on the demand curve. A monopolistic competitive market is imperfect competition because many products sell similar products but they are different due to branding and quality used so they are not perfect substitutes for one another.
Answer:
Net income to be earned = $58,500
Explanation:
The net income to be earned can determined as follows:
<em>Net income = (sales value - Variable costs) - Fixed costs</em>
With an increase in selling price by 10%, the total sales value would now be
Total sales value = 110% × 315,000 =$346,500
Net income therefore would be
= (346,500 - 218,000) - 70,000
= $58,500
Not that the fixed cost will not change because it is independent of volume and also the variable cost has been stated to remain the same.
Out of the following choices given, the term that describes the seller's ability and desire to seel good and services is called demand. The answer will be B.
Answer:
Price of stock = $49.5
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price of stock=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
DATA:
D0- 2.7
g- 10%
K- 16%
Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5
Price of stock = $49.5
I'm going to guess, but i would say the best answer would be B. They could file for Chapter 7 bankruptcy and discharge most of their debt.
