Answer:
C) This will shift the aggregate demand curve to the left.
Explanation:
The demand curve is graphed on one axis being price level and the other axis being the total amount of goods and services purchased.
If consumer is pessimistic about their future incomes, they will want to save more and spend less, so they will demand less less goods and services at any price level than they used to before the recession (at that corresponding price level) ==> demand curve shift left.
Answer:
The correct answer is the demand has increased.
Explanation:
At the market price of $5/unit, the quantity demanded is 20 units.
Last year at the price level of $4, the quantity demanded was 20 units.
We see that even though the price has increased the quantity demanded is the same. This indicates that the demand has increased.
When there is an increase in the demand for a commodity, the demand curve moves to the right. This upward or rightward shift in the demand curve will cause the price of the commodity to increase. Though the quantity demanded will be the same.
Answer:
B. targeting strategy and marketing mix
Explanation:
In business, Targeting strategy refers to a strategy that a company implemented to sell their product to specific group of consumers.
In pepsi's case, they focus their targeting strategy toward the consumers who want a refreshing drink.
Marketing mix is a marketing strategy that is revolved around product, price, place, and promotion. Companies could utilzie this 4 factors to create a business model that can make their targeting strategy succesful.
In pepsi's case:
They sold their product in almost every convenience store <u>(place) .</u> Making it easier for consumers who currently crave refreshing drinks. The <u>price </u>of Pepsi's product is very affordable.
<u>They designed and promote their produc</u>t to obtain a reputation as refreshing a product that can relinquish your thirst. You can see it in most of their advertising. Most of it consist of people in a hot weather that craves something cold and refreshing.
Answer:
18.80%
Explanation:
Data given
Risk free rate = 4%
Beta = 1.85
Market return = 12%
The computation of rate of return is shown below:-
Using CAPM
Rate of Return = Risk free rate + Beta × (Market return- Risk free rate)
= 4% + 1.85 × (12% - 4%)
= 4% + 1.85 × 8%
= 4% + 14.8%
= 18.80%
Therefore for computing the rate of return we simply applied the above formula.
Answer:
Part A)
The eliminating entries are recorded only in the consolidation work paper and therefore do not change the balances recorded on the company's books. Each time consolidated statements are prepared the balances reported on the company's books serve as the starting point. Thus, all the necessary eliminating entries must be entered in the consolidation work paper each time consolidated statements are prepared.
Part B)
For acquisitions prior to the application of FASB 141R, the balance assigned to the non-controlling shareholders at the beginning of the period is based on the book value of the net assets of the subsidiary at that date and is recorded in the work paper in the entry to eliminate the beginning stockholders' equity balances of the subsidiary and the beginning investment account balance of the parent. For acquisitions after the effective date of FASB 141 R, the non-controlling interest at a point in time is equal to its fair value on the date of combination, adjusted to date for a proportionate share of the undistributed earnings of the subsidiary and the non-controlling interest's share of any write-off of differential. Another approach to determining the non-controlling interest at a point in time is to add the remaining differential at that time to the subsidiary’s common stockholder’s equity and multiply the result by the non-controlling interests proportionate ownership interest in the subsidiary
Part C)
In the consolidation work paper the ending balance assigned to non-controlling interest is derived by crediting non-controlling interest for the starting balance, as indicated in the preceding question, and then adding income assigned to the non-controlling interest in the consolidated income statement and deducting a pro-rata portion of subsidiary dividends declared during the period.
Part D)
All the stockholders' equity account balances of the subsidiary must be eliminated each time consolidated financial statements are prepared. Inter-company receivables and payables, if any, must also be eliminated.
Part E)
The "investment in subsidiary" and "income from subsidiary" accounts must be eliminated each time when the consolidated financial statements are prepared. Inter-company receivables and payables, if any, must also be eliminated.
