Which of the following competitive forces brings low prices, high costs, and low profits?

If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additiona

OleMash [197]

Pulsing advertising does exactly that, continuous advertising year round and then a bump in advertising when sells peak. Pulsing combines flighting and continuous scheduling.

6 0

3 years ago

If the book value per share is $40 and the market price is 52.50 per share calculate the required rate of return on the stock.

pav-90 [236]

Answer:

0.11 or 11%

Explanation:

The computation of the required rate of return is given below:

Required Rate of Return is

= Next Year Dividend ÷ Current Market Price + Growth Rate

= $3.15 ÷ $52.50 + 0.05

= 0.06 + 0.05

= 0.11 or 11%

working note

Given that

Current Market Price = $52.50

As we know that

Growth Rate = Return on Equity × Retained Earning Ratio

Now

Return on Equity = EPS ÷ Book Value of Share

= $5 ÷ 40

= 12.50%

So,

Retained Earning Ratio is

= 1 - Dividend Payout Ratio

= 1 - 0.60

= 0.40

And,

Dividend Payout Ratio = DPS ÷ EPS

= $3 ÷ $5

= 0.60

Now

Growth Rate = 12.50% × 0.40

= 5%

So,

Next Year Dividend = Dividend Recently paid × (1 + growth rate )

= $3 × 1.05

= $3.15

7 0

3 years ago

A stock had returns of 9.62 percent, −14.65 percent, 19.85 percent, 25.35 percent, and 7.65 percent over the past five years. Wh

dybincka [34]

Answer:

The geometric average return for this stock was 8.64%.

Explanation:

Geometric average return refers to the return which will result in the correct compounded dollars at the end of the time period.

Geometric average return can be computed using the following formula:

Geometric average return = {[(1 + r1)(1 + r2) ... (1 + rn)]^(1/n)} - 1 ......... (1)

Where r is returns from year 1 to year n.

For the stock in the question, we have:

r1 = 9.62%, 0.0962

r2 = -14.65%, or -0.1465

r3 = 19.85%, or 0.1985

r4 = 25.35%, or 0.2535

r5 = 7.65%, or 0.0765

n = 5

Substituting the values into equation (1), we have:

Geometric average return = {[(1 + 0.0962)(1 - 0.1465)(1 + 0.1985)(1 + 0.2535)(1 + 0.0765)]^(1/5)} - 1

Geometric average return = {1.51310732605096^0.20} - 1

Geometric average return = 0.0864, or 8.64%

Therefore, the geometric average return for this stock was 8.64%.

5 0

3 years ago

An electronics store has a current inventory of 50 stereo systems. The lowest priced stereo system in the store sells for $800,

hammer [34]

Answer:

B) 32

Explanation:

let H = number of expensive high price stereo systems

let L = number of less expensive low price stereo systems

H + L = 50

3,000H + 800L = 110,000

H = 50 - L (now replace)

3,000 (50 - L) + 800L = 110,000

150,000 - 3,000L + 800L = 110,000

150,000 - 110,000 = 3,000L - 800L

40,000 = 2,200L

L = 40,000 / 2,200 = 18.18 ≈ 18 lower priced stereo systems

H = 50 - 18 = 32 higher priced stereo systems

(3,000 x 32) + (800 x 18) = 96,000 + 14,400 = 110,400

Even though the answer is not exact, if you had 33 high cost stereo systems, your inventory's cost = $112,600 which is $1,600 off

3 0

3 years ago

"Analysis of environment impact its extermely important ". Justify the statement in topic of business in one paragraph

Archy [21]

Answer:

see below

Explanation:

Environmental analysis or scanning informs the management of possible opportunities and threats surrounding a business. Analysis of the business environment is essential because there are rapid changes happening in the environment that can greatly impact business performance.

.

A business relies on its environment for inputs and a market for outputs. Changes in any of these factors may disrupt business operations. For a business to thrive, it must continuously conduct an environmental impact assessment and adapt to it appropriately.

6 0

3 years ago