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:
<u>A. A perpetuity is a stream of regularly timed, equal cash flows that continue forever</u>
<u>D. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distance (in the future) cash flows.</u>
<u>Explanation:</u>
First, we need to note that perpetuity is a term used in finance to refer to any continuous periodic payments of equal face value. In other words, the payments last forever.
Part of the characteristics of perpetuity is that the payments are of equal cash value and <em>the current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows</em> rather than by the discounted value of its more distance (in the future) cash flow.
Answer:
1.$34.4
2.$38.70
3.$61.95
Explanation:
1. Current price=D1/ (Required return-Growth rate)
= (2.15*1.04)/ (0.105-0.04) =$34.4
Therefore the answer is $34.4
We use the following formula:
A=P (1+r/100) ^n
where
A=future value
P=present value
r=rate of interest
n=time period.
2. A=$34.4*(1.04) ^3
=$38.70(Approximately).
Therefore the answer is 38.70
3. A=$34.4*(1.04) ^15
=$61.95(Approximately).
Therefore the answer is $61.95
Answer:
to survive today, organizations need to be present in both the online and physical markets
Explanation:
So far Amazon has dominated the online space when it comes to buying products and services. But the scenario in the question makes it clear that having only one channel open to customers (online) is not sufficient.
It is necessary to diversify by having physical stores in addition to online stores.
Some consumers for example will want to examine what they are buying before paying, others will not have the patience to wait for delivery of goods. So the physical store will serve these segments of customer's.
Answer:
a) $21.43
Explanation:
Preferred stock price = Annual dividend / Required rate
Preferred stock price = 1.50/7%
Preferred stock price = 1.50/0.07
Preferred stock price = 21.42857142857143
Preferred stock price = $21.43