Answer:
$2,000,000
Explanation:
current awareness of Digby's Don = 72%
next year it will decrease to 72% - 1/3 = 48% if the firm does nothing
- first $1,000,000 adds 22% awareness ⇒ total awareness = 48% + 22% = 70%
- second $1,000,000 adds 23% awareness ⇒ total awareness = 70% + 23% = 93%
- third $1,000,000 adds 5% awareness ⇒ total awareness = 93% + 5% = 98%
Don's competition, Axe, has an awareness level of 77% and it should remain the same next year. So, Digby as to spend at least $2,000,000 to earn more awareness than Axe. Don's awareness level will be 93%.
Answer:
D) $0
Explanation:
The depreciation method changed, but the previous depreciation expense has already been recorded and subject to taxes. Therefore the new straight line depreciation should start with the remaining asset value and calculate the depreciation expense for the remaining 6 years:
For example, if the purchase value was $1,200,000 (= $300,000 x 4), the remaining value would be $675,000 then the depreciation expense will be $112,500 per year during the next 6 years starting on year 9.
Answer:
b) higher
Explanation:
As we know that the bondholders would be have more priority as compared with the shareholders either they have high risk as compared with the bond holders
So as per the given situation, in the case when the stockholder has the residual claim on all the assets after the payment of debt. This leads to high risk as compared with the bondholders
Therefore the correct option is B.
Answer:
If opportunity cost is 5%, PV=10,366.05
If opportunity cost is 6.5%, PV=9,934.19
If opportunity cost is 11.5%, PV=8,656.79
Explanation:
PV=Σ
If opportunity cost is 5%: PV =
=10,366.05
If opportunity cost is 6.5%: PV =
=9,934.19
If opportunity cost is 11.5%: PV =
=8,656.79
Its important to conduct market research on your target audience before building your marketing plan because you need to consider who your potential customers are before deciding on marketing strategies. Customers enjoy sharing their opinions, so market research will make your product sell more.