Answer:
A. And increases the retention of information in the ad
Explanation:
Music in ad is a way of creating awareness which excite the prospective customers, it help to gain their attention and also helps to remember the information of the advert because subconsciously the music plays in their head and as it does , the information about the product keeps coming to them.
Answer:
$13.19
Explanation:
Data given
Annual dividend = $1.48
Increase percentage annually = 2.5%
Discount rate percentage = 14%
The computation of price is shown below:-
Price = Dividend ÷ (Cost of equity - Growth rate)
= ($1.48 × 1.025) ÷ (0.14 - 0.025)
= $1.517 ÷ 0.115
= $13.19
Therefore for computing the price we simply applied the above formula.
The Stackelberg solution can be used to find the perfect or stable Nash equilibrium or equilibria.
<h3>What is this equilibrium about?</h3>
Other answers:
Based on the above, Note that the strategy profile is one where one serves best each player, and based on the strategies of the other player and it covers the fact that all player playing in a Nash equilibrium must be in every subgame.
Note also that The Stackelberg leadership model is said to be a kind off strategic game that is played in economics where the leader firm is known to moves first and then the follower firms is said to then move in a sequential manner and I think, the solution do not change if stackelberg game is considered in the long run.
I believe that the stackelberg leader will not collude with the stackelberg follower but in a lot of cases, there may be a collusion.
Yes, a Stackelberg leader can be more likely or less likely to merge with the follower firm as a merger can be profitable to them.
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Answer:
The maximum investment is $6,360.111
Explanation:
Giving the following information:
The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.
We need to find the net present value. The maximum initial investment will be the amount that makes the NPV cero.
NPV=∑[Cf/(1+i)^n]
Cf= cash flow
<u>For example:</u>
Year 1= 500/1.05= 476.19
Year 3= 500/1.05^3= 431.92
Year 5= 1,000/1.05^5= 783.53
NPV= 6,360.111
The maximum investment is $6,360.111