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3 years ago

Writing ads and setting prices are examples of which of the following?

1 answer:

Rudiy273 years ago

4 0

This is an example of a marketing tactics

Simply put, it's what you do when you want to attract customers. Changing prices and advertising helps in your marketing campaigns.

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If Cute Camel’s forecast turns out to be correct and its price/earnings (P/E) ratio does not change, what does the company’s man

Llana [10]

Cute Camel Woodcraft Company Just reported earnings after tax (also called net income) of $9, 750,000, and a current stock price of $36.75 per share. The company Is forecasting an increase of 25% for its after-tax income next year, but it also expects it will have to issue 2, 900,000 new shares of stock (raising its shares outstanding from 5, 500,000 to 8, 400,000). If Cute Camel's forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does the company's management expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.)

Answer:

The scenario says that

Previous P/E ratio = New P/E ratio after issuance of ordinary shares and increase in earnings after tax

So we have to only find previous data before any changes to find previous P/E ratio which is equal to new P/E ratio. This means it could be used to find new share price which has changed due to increase earnings and ordinary shares.

Previous P/E ratio = ($36.75 per share * 5,500,000 shares)/$9,750,000

= $20.7308 per share

New P/E Ratio = Market Value of total ordinary shares / Total Earnings

Previous (P/E) = Share price * Total ordinary shares / prev. ear. * 125%

This implies

Share price = Previous (P/E) * Previous earnings * 125% / Total ordinary shares

Share price = $20.7308 / share * $9,750,000 *125% / $8,400,000

Share price = $30.0781 per share.

5 0

2 years ago

ECNAL Corp. manufactures bicycle parts. One of its new products, the Slipstream tire, is advertised to be 20 percent stronger th

Drupady [299]

Answer:

The correct answer is the option A: Corrective advertising.

Explanation:

To begin with, the concept known as <em>"Corrective Advertising"</em> refers to a severe penalty that is used by many agencies, including the Federal Trade Commision, in ordert to impose to the companies the fact that they had worked unethically regarding certain advertisements that they have been controled by the agency. Therefore that the corrective advertising is a way to penalize those companies, that had advertised products with false information or that might cause harm to the consumers.

5 0

3 years ago

On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing

sammy [17]

Answer:

See Explanation

Explanation:

(a)

Journal entry to record the transaction is,

Particulars Debit Credit

Land and Building (460000 + 520000) $980,000

Cash Paid $360,000

Mortgage Payable (980,000 - 360,000) $620,000

We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.

(b)

First installment = Principal + Interest payable

= 31,000 + (620,000 * 0.04) = $55,800

(c)

Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560

Since the chart of accounts is not provided you can confirm the the account headings.

Hope that helps.

5 0

3 years ago

Cheryl's Cookies has decided to create a charity that ships cookies to soldiers stationed in Syria. The soldiers could request t

Bess [88]

Answer: Option B : Accessible

Explanation: The segment might not be accessible because of the inability to deliver the cookies in war zones as this area cannot accommodate most delivery forms.

7 0

2 years ago

Net Present Value Method

arsen [322]

Answer:

year net cash flow

0 -$150,000

1 $80,000

2 $65,000

3 $50,000

4 $40,000

A) NPV = -$150,000 + ($80,000 x .87) + ($65,000 x .756) + ($50,000 x .658) + ($40,000 x .572) = -$150,000 + $69,600 + $49,140 + $32,900 + $22,880 = -$150,000 + $174,520 = $24,520

B) Yes , because the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 15%. Since the NPV is positive ($24,520), it means that the cash inflows are higher than the cash outflows when we use a 15% discount rate.

4 0

3 years ago