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Marina86 [1]
4 years ago
6

Akamai Technologies is a dominant player in the content delivery network (CDN) market. Akamai is not very diversified (i.e., is

dependent on the CDN market). If rival CDN providers such as Limelight Networks and Level 3 Communications lower their basic CDN service prices, what would be Akamai’s likely response?
Business
1 answer:
vladimir2022 [97]4 years ago
8 0

Answer:

The answer is: Akamai will probably lower its prices too.

Explanation:

When a company's competitors offer similar products and lower their prices, they are expecting a substitution effect to happen. This means that your customers will stop buying from you and will start buying similar substitute products from the competition at lower prices.

Akamai will probably try to avoid this from happening and the only feasible way they can do it is by also lowering their prices to match the competition's.

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Galloway, Inc. has an odd dividend policy. The company just paid a dividend of $6 per share and has announced that it will incre
anzhelika [568]

Answer:

the present value of the stock is 26.57

This will be the amount willing to pay per share today.

Explanation:

We have to calculate the present value of the future dividend

\left[\begin{array}{ccc}Year&Cashflow&Present \: Value\\0&6&\\1&7&6.3636\\2&8&6.6116\\3&9&6.7618\\4&10&6.8301\\total&9.7&26.5671\\\end{array}\right]

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

We will put each dividend and their year into the formula and solve for PV

First Year

\frac{7}{(1 + 0.1)^{1} } = PV

Second Year

\frac{8}{(1 + 0.1)^{2} } = PV

Third Year

\frac{9}{(1 + 0.1)^{3} } = PV

Fourth Year

\frac{10}{(1 + 0.1)^{4} } = PV

The value of the stock is the sum of the present value of their dividend

The sum for this firm is 26.5671 = 26.57

6 0
3 years ago
Ben is choosing between two savings accounts. Both accounts pay 3% interest. Account X pays compound interest. Account Y pays si
dybincka [34]

the interest rate is 3%

Ben should choose account X because, since it uses compound interest, it would pay interest on interest. Simple interest only pays on the original balance.

so your answer will be B it would pay interest on interest

4 0
4 years ago
A stock has an expected return of 15.1 percent, the risk-free rate is 5.95 percent, and the market risk premium is 7.8 percent.
horsena [70]

Answer:

1.17%

Explanation:

Expected return is 15.1 %

Risk free rate is 5.95 %

Market risk premium is 7.8%

Therefore the beta can be calculated as follows

Expected return= risk free rate + (beta×market risk premium)

15.1%= 5.95% + (beta × 7.8%)

15.1%-5.95%= 7.8% beta

9.15%= 7.8% beta

beta= 9.15%/7.8%

beta= 1.17%

6 0
3 years ago
Which two types of résumés can be formatted to be visually appealing?
QveST [7]
After my thorough researching, the two types of résumés that can be formatted to be visually appealing is the print and the web. The correct answer to the following given statement or question above is the print and the web.
8 0
3 years ago
Read 2 more answers
On March 1, Young Co. borrowed $1,000 by extending their past-due account payable with a 120-day, 6% interest-bearing note. On J
tamaranim1 [39]

Answer:

This entry would be recorded by Young with a credit to <u>cash account</u> in the amount of <u>$1,020</u>.

Explanation:

The complete journal entry for June 29 should be

  • Dr Notes Payable account 1000
  • Dr Interest Expense account 20
  • Cr Cash account 1020

The total interest due = $1,000 x 6% x 4/12 =$20

Notes payable is a liability account and it decreases, so it should be debited.

All expenses are debited.

Cash is an asset account and it decreases, so it should be credited.

7 0
4 years ago
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