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natima [27]
3 years ago
15

Fresnas Designs Inc. is a company known for its quality interior decorations, customized service, and affordable prices. Given t

he high demand in the market for its service, the management of Fresnas Designs Inc. could price its products higher, but it prefers to price its products such that it will earn a reasonable revenue. In this case, the management of Fresnas Designs Inc. bases its pricing policy on:​__________
Business
1 answer:
kicyunya [14]3 years ago
8 0

Answer:

Earning Satisfactory Profits

Explanation:

Based on the information provided within the qeustion it seems that the management of Fresnas Designs Inc. bases its pricing policy on Earning Satisfactory Profits. This is basically when a company revolves all their decisions around trying to make a reasonable level of profits that is consistent with the level of risk that they face. Which is what Fresnas is doing by pricing their products reasonably as opposed to pricing them higher even thought hey can.

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Holly would like to plan for her daughter’s college education. She would like for her daughter, who was born today, to attend co
Ugo [173]

Answer:

Holly must save $2845.81 at the end of each year

Explanation:

first calculate the value of tuition fees at n = 18

Cash flow formula = Tuition × (1+0.07)^{n}

Discounted CF formula = Cash flow ÷ (1+0.10)^{year}

               10.00%              0

Year   Cash flows   Discounted CF

0           33,799.32  33799.32

1          36,165.28  32877.52

2          38,696.84  31980.86

3          41,405.62  31108.66

FV = $129,766.37

PV = 0

N = 18

rate = 10%

using PMT function in Excel

Annual contribution = $2845.81

4 0
3 years ago
WACC. Eric has another​ get-rich-quick idea, but needs funding to support it. He chooses an​ all-debt funding scenario. He will
maks197457 [2]

Answer:

274.7%

Explanation:

The total amount that Eric will borrow will be = 43114311+33503350+13391339 = 90009000.

Now to calculate WACC, we will apply the WACC formula:

WACC = (43114311/90009000)*0.66 + (33503350/90009000)*0.88 + (13391339/90009000)*14.14

Hence,

WACC = 274.74%

The solution was very simple, we just applied the WACC formula by taking the total amount of debt in the denominator of each of the loans taken and multiplied it by the interest rate on which it is taken.

Hope this helps, although I think the values in the question are not correct, but nonetheless I have provide the correct solution according to the given values.

Thanks.

5 0
3 years ago
The Coase theorem states that A) the private sector will fail to produce the efficient amount of a public good because of the fr
Sonja [21]

Answer:

B

Explanation:

One of the problems in economics is the allocation of goods in the presence of externalities. When externalities are present allocation of goods in private market won't be efficient because private parties won't internalize them and would arrive to an inefficient outcome. For many years this was an argument in favor of government intervention.

However, Ronald Coase showed that assigning property rights of the externality to one of the private parties (no matter which one) would result in an efficient outcome. This is because  the parties with the property right would then internalize the cost. Then in the bargaining process private parties would reach an efficient outcome without the intervention of the government.

7 0
3 years ago
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