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lawyer [7]
3 years ago
5

Young Johnny inherited the only local cable TV company in town after his father passed away. The company is completely unregulat

ed by the government and is therefore free to operate as it wishes. Assuming that Johnny understands the true power of his new monopoly, he is probably most excited about which of the following statements?
(i) He will be able to set the price of cable TV service at whatever level he wishes.
(ii) The customers will be forced to purchase cable TV service at whatever price he wants to set.
(iii) He will be able to achieve any profit level that he desires

A. (i) only
B. (ii) only
C. (i) and (iii)
D. All of the above are correct.
Business
1 answer:
Marianna [84]3 years ago
4 0
The answer is A. (i) only
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Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then red
ololo11 [35]

Answer:

The price of the stock today or the price at which the stock should sell today is $61.30

Explanation:

The price of the stock today can be calculated using the Dividend Discount Model approach which values a stock based on the present value of the expected future dividends from the stock. The price of this stock will be,

P0 = 3.15 * (1+0.2) / (1+0.12)  +  3.15  * (1+0.2) * (1+0.15)  /  (1+0.12)^2  +  

3.15 * (1+0.2) * (1+0.15) * (1+0.1) / (1+0.12)^3  +  

[(3.15 * (1+0.2) * (1+0.15) * (1+0.1) * (1+0.05) / (0.12 - 0.05))  / (1+0.12)^3]

P0 = $61.296 rounded off to $61.30

5 0
3 years ago
Each day you have $5 for lunch. Today, you decided to save $2
prisoha [69]

Each day you have $5 for lunch. Today, you decided to save $2  and buy the chicken salad tomorrow for $6.50-<u>In this case the money is being used </u>

<u>to save and store the purchasing power</u>

Explanation:

The term money can be defined as a thing that serves as

  • A medium of exchange which is usually financial in nature.
  • It is used by the borrower to repay back to the lender-used to repay the debt.
  • It is used as an unit of accounting to measure your income and expenditure.
  • It is used to store the value of money -in other words used to save  the  purchasing power of an individual

Thus we can say that ,

Each day you have $5 for lunch. Today, you decided to save $2  and buy the chicken salad tomorrow for $6.50-<u>In this case the money is being used </u>

<u>to save and store the purchasing power</u>

8 0
3 years ago
Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du
anzhelika [568]

Answer:

cost of capital 16%

Explanation:

SML formula:

Ke= r_f + \beta (r_m-r_f)\\\\Where:\\r_f =$ risk free rate\\r_m= $ market rate\\\beta =non-diversifiable \:risk

r_f = 3%

β = 1.3

r_m = 13%

0.03 + 1.3(0.13-0.03)

firm's required return = .16 = 16%

4 0
3 years ago
In a push based system of distribution which relies on selling to customers through a sales force and retail partners, managers
Elanso [62]

Answer:

a) channel members.

Explanation:

A push-based distribution system can be defined as one whose production plan is directed from management to the market, where products are sent through a channel until they reach retailers, and then to the final consumer.

Therefore, managers direct their promotional efforts more towards channel members, so that the path that the product goes through to reach the final consumer is effective so that the product arrives in the right way, in the right quantity and at the right time to the consumer. Effective management of the company 's distribution channel helps to reduce costs, reduce delays, speed up the capacity to meet demand, increase customer satisfaction, etc.

6 0
3 years ago
Kodak's marketing team identifies a group of people who are most likely to use the company's new digital technology and creates
kifflom [539]

Answer:

Receivers

Explanation:

An effective communication involves sending a message and the message being received and understood by the receivers. Simply put, communication is the exchange of message between a sender and receiver.

In the above wuestion, the individuals who are the target of the advertising are receivers as those receivers are the ones that can make sense of the advertisement and thus measn the message being passed across is understood.

Cheers

4 0
3 years ago
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