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mars1129 [50]
3 years ago
15

Suppose that SoS sells both versions and wants to charge different prices for different versions. What is the highest price of t

he bluetooth version for the high-valuation buyers? (Hint: Since low-valuation buyers will not have an incentive to buy the more expensive version, the highest price of the stripped-down version for the low-valuation buyers is equal to their willingness to pay, i.e., pL = $250)
Business
1 answer:
borishaifa [10]3 years ago
3 0

Answer:

Check the explanation

Explanation:

Since the high valuation customers are willing to pay $500 for the Bluetooth headphones, that price should be set for the Bluetooth versions. The problem will arise if the high valuation customers shift to the stripped down version as well. However, since they care for the Bluetooth versions and stripped down versions separately, it is highly likely that they will prefer the Bluetooth headphones.

So the highest price that can be set for the Bluetooth headphones for the high value buyer will be $500.

5) If the price is set at $500 for high value customers and $250 for low value customers, total profit can be given as

Profit = 1,000,000 * (250 - 100) + 800,000 * (500 - 100)

Profit = 150,000,000 + 320,000,000 = $470 million

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Answer:

a) $0.5145 million

b) $7.35 million

Explanation:

Given:

Permanent debt outstanding = $35,000,000

Expected marginal tax rate = 21%

a) Suppose they pay an interest of 7% per year on debt. Find the annual interest tax shield.

To find annual interes tax shield use the formula below:

Annual interest tax​ shield =Total par value of Debt × interest rate × tax rate

= $35,000,000 × 7% × 21%

= $35,000,000 × 0.07 × 0.21

= $514,500

Annual interest tax​ shield = $0.5145 million

b) What is the present value of the interest tax shield, assuming its risk is the same as the loan?

Use the formula:

Present value of the interest tax​ shield = Annual interest tax​ shield /loan interest rate

= $514,500 / 7%

= $7,350,000

present value of the interest tax​ shield = $7.35 million

3 0
3 years ago
________ refers to ensuring that the human resources management function is delivering its services efficiently.
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Answer: HR Department lever

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HR department lever refers to ensuring that the human resources management function is delivering its services efficiently.

It should be noted that the three levers that exist in Human Resources are:

• HR department lever

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The Human Resource manager oversees the human resources department and make sure that services are provided effectively.

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Answer:

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Explanation:

Predictive modeling uses statistics to predict outcomes. It can be applied to any type of unknown event, regardless of when it occurred.

3 0
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Alfonzo's Italian House has 25,000 shares of stock outstanding with a par value of $1 per share and a market price of $36 a shar
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