Answer:
(C).Marketing
Explanation:
According to the <u>marketing concept</u>, firms must develop strategies to <u>determine and satisfy the needs of their customers</u>,<u> increase sales of goods and services to earn maximum profit</u>, and also do better than their competitors.
This concept expects that finding out and satisfying the needs of customers better than competitors can, should be prioritized.
Answer:
Option D is the correct answer.
<u>Yes,it should be eliminated. Because operating income will increase by $15,200</u>
Explanation:
Increase (Decrease) in operating income
= Avoidable fixed costs - Contribution margin lost
= 26,400 - 11,200
= $15,200
1. start with your homework
2. develop effective memorization techniques
3. develop critical reading skills
4. Focus on the areas that require the most attention
5. Improve test taking strategies
Answer:
a.
r = 0.06697 or 6.697% rounded off to 6.70%
b.
r = 0.1202 or 12.02%
Explanation:
a.
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is dividend expected for the next period /year
- r is the required rate of return or cost of equity
Plugging in the values for P0, D0 and g in the formula, we can calculate the value of r to be,
76 = 0.5 * (1+0.06) / (r - 0.06)
76 * (r - 0.06) = 0.53
76r - 4.56 = 0.53
76r = 0.53 + 4.56
r = 5.09 / 76
r = 0.06697 or 6.697% rounded off to 6.70%
.
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free rate
rM is the market return
r = 0.059 + 1.2 * (0.11 - 0.059)
r = 0.1202 or 12.02%
Answer:
2205
Explanation:
annual compound interest formula
PV(1+i)ⁿ
we have
2000(1+.05)²
=2205
