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3 years ago

Bundling raises higher revenues than selling the goods separately when:

Business

1 answer:

Aleonysh [2.5K]3 years ago

6 0

Answer:

B. there is a perfect positive correlation between the demands for two goods.

Explanation:

Bundling is a technique of combining two or more products and selling them together as one package.

This technique is most commonly used by many companies like Microsoft, McDonald's, etc.

Sometimes, the strategy of bundling doesn't pay off in some endeavours as the companies might not make profit or not make as much profit as was originally projected.

Other times, it has paid off handsomely.

À company can decide to bundle products like a mouse, a keyboard, a USB drive and a monitor to sell as one package and not sell them individually, this is known as "pure bundling".

There is an increase in revenue when the change in value of one of the product in the bundle is equally proportional to the change in value of the other product in the bundle.

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How would the issuance of common stock for cash affect the accounting equation?

shepuryov [24]

Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

To Common stock A/c XXXXX

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The accounting equation is

Total Assets = Total liabilities + Stockholder equity

Cash Increased = No effect + Increased

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3 years ago

The transition to an information economy was characterized by ______.

Viefleur [7K]

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4 years ago

Workers with knowledge-based education and managerial skills are

Lady_Fox [76]

C Skilled labour as it say in the statement

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4 years ago

Read 2 more answers

Match each term with the correct definition.

JulijaS [17]

Answer:

1. Economics - The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.

2. Opportunity cost - The next-best thing that must be forgone in order to produce one more unit of a given product.

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3 years ago

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

Now we solve for the intrinsic price using the gordon model

with multi-stage growth:

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

Finally we add them and get:

42.97160726

8 0

4 years ago