Answer: e. To drive up market share
Explanation:
Differentiation strategies involve adding features to a good to make it stand out from the Competition. Since these features are usually beneficial, the value of the good goes up and the company selling them can charge more. This is the main way things are done in Monopolistic markets.
However, sometimes it is best to charge the same price the Competition is charging even though you have a better product. This way the company is able to capture Market Share because the consumers will believe they are getting a better value for their money. For instance, if a company was selling Toyotas at $2,000 and it's competitor was selling the same Toyota but with 2 extra tires for the same $2,000 who would you use? The Competitor most likely.
This is why a firm might want to keep prices in line with competitors.
Answer:
The Sarbanes-Oxley Act
Explanation:
The name of the act was given because of the two leaders who jointly worked together to regain the trust of potential investors in the financial system. The act discussed the auditing requirements, directors roles and responsibilities and the signing of the annual report by the directors as well and also that the CFO and CEO will form an opinion about the firms future, goals and giving the undertaking that the financial statement are accurate according to their knwoledge.
The price of the share would be calculated as -
Price of share = Annual constant dividend / Cost of equity
Given, cost of equity = 10.5 %
Annual constant dividend = $ 1.60
Price of share = $ 1.60 ÷ 10.50 %
Price of share = $ 15.238 or $ 15.24
