Answer:
False
Explanation:
Purchasing power is related to real income and not to nominal income. Even though workers had a $10 increase in their average nominal income, due to the effects of inflation, that increase does not necessarily reflect an improve in purchasing power.
The statement is false.
Demographic factors are the most one of the mose used bases for separating or segmenting consumer group. One reason demographic variables are the most popular bases for segmenting customer groups is because are easier to measure than other variables.
Demographics variables often helps consumer needs, wants, and usage rates often to differ. These factors easier to measure than other type of variables.
The segmentation of variable divides the market into smaller means with the use of demographic factors. these factors used are age, gender, and income.
Conclusively, customer segmentation method used is very easy to get through census data, analytics software, consumer forecast etc.
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Answer:
Their leaders won international acclaim.
Explanation:
Answer: Its competitive advantage
Explanation: Competitive advantage refers to a situation when a company has some superior position in market than other competing firms.
In the given case, Southwest airlines is operating at low cost due to their high standards in recruitment and cooperative behavior towards their employees. Thus, they are offering something that no other firm is. Hence, due to their special behavior towards their employees they are having low cost and competitive advantage in market.
Answer:
MILLER STORES
Ke = Rf + β(Market risk premium)
12.7 = Rf + 1.38(7.4)
12.7 = Rf + 10.212
Rf = 12.7 - 10.212
Rf = 2.488%
DIVISION A
Ke = Rf + β(Risk premium)
Ke = 2.488 + 1.52(7.4)
Ke = 2.488 + 11.248
Ke = 13.74%
Explanation:
First and foremost, we need to calculate risk-free rate using the data relating to Miller Stores. In this case, the cost of equity, beta and market risk premium of Miller Stores were provided with the exception of risk-free rate. Then, we will make risk-free rate the subject of the formula.
We also need to calculate the cost of capital of division A, which is risk-free rate plus beta multiplied by the market risk-premium.
