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3 years ago

What are the two ways a company can translate its low-cost advantage over rivals into attractive profit performance

1 answer:

5 0

Either using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a bigger profit margin

You might be interested in

Which of the following economic goals focuses on funding technological advances in production?

LuckyWell [14K]

Technology was developed in the hopes of making things simpler and quicker to do a job. Assembly lines, robots, airplanes. Doing so made life and jobs more efficient.

So the answer will be efficient.

6 0

4 years ago

The ronnie co. has sales per share of 25.37. If the PS ratio is 1.47 times, what is the stock price?

ivolga24 [154]

Answer:

$37.30

Explanation:

Sales per share S = 25.37

PS ratio = 1.47 times

PS ratio = Price to sales ratio = P/S

P/S = 1.53

Price per share = (P/S) * Sales per share

Price per share = 1.47 * 25.37

Price per share = $37.2939

Price per share = $37.30

6 0

3 years ago

__________ involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect th

dangina [55]

PEST analysis involves the analysis of economic , political, legal, technological and cultural events and trends that may affect the future of the organization and its marketing efforts.

Explanation:

PEST analysis is the simple as well as mostly used tool that helps in analyzing economic,technological, political,socio-cultural changes in the business environment. There are various advantages of PEST analysis that is, it helps in proper understanding of the business, it helps in dealing with various threats, It is also a cost effective analysis. This analysis helps in determining the performance of the business during long- term.

8 0

4 years ago

Do you think that tax cuts increase economic growth and taxable income so much that tax revenue increases? Or do you think that

algol13

Answer:

lowering taxes raises disposable income allowing the consumer or adult to spend additional sums.

8 0

3 years ago

Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, a

noname [10]

Answer:

Miller-bond:

today: $ 1,167.68

after 1-year: $ 1,157.74

after 3 year: $ 1,136.03

after 7-year: $ 1,084.25

after 11-year: $ 1,018.87

at maturity: $ 1,000.00

Modigliani-bond:

today: $ 847.53

after 1-year: $ 855.49

after 3 year: $ 873.41

after 7-year: $ 918.89

after 11-year: $ 981.14

at maturity: $ 1,000.00

Explanation:

We need to solve for the present value of the coupon payment and maturity of each bonds:

Miller:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 80.000

time 12

rate 0.06

$80 \times \frac{1-(1+0.06)^{-12} }{0.06} = PV\\$

PV $670.7075

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 12.00

rate 0.06

$\frac{1000}{(1 + 0.06)^{12} } = PV$

PV 496.97

PV c $670.7075

PV m $496.9694

Total $1,167.6769

In few years ahead we can capitalize the bod and subtract the coupon payment

after a year:

1.167.669 x (1.06) - 80 = $1,157.7375

after three-year:

1,157.74 x 1.06^2 - 80*1.06 - 80 = 1136.033855

If we are far away then, it is better to re do the main formula

after 7-years:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 80.000

time 5

rate 0.06

$80 \times \frac{1-(1+0.06)^{-5} }{0.06} = PV\\$

PV $336.9891

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 5.00

rate 0.06

$\frac{1000}{(1 + 0.06)^{5} } = PV$

PV $747.26

PV c $336.9891

PV m $747.2582

Total $1,084.2473

1 year before maturity:

last coupon payment + maturity

1,080 /1.06 = 1.018,8679 = 1,018.87

For the Modigliani bond, we repeat the same procedure.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 30.000

time 24

rate 0.04

$30 \times \frac{1-(1+0.04)^{-24} }{0.04} = PV\\$

PV $457.4089

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 24.00

rate 0.04

$\frac{1000}{(1 + 0.04)^{24} } = PV$

PV 390.12

PV c $457.4089

PV m $390.1215

Total $847.5304

And we repeat the procedure for other years

7 0

4 years ago