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Alexeev081 [22]
3 years ago
14

Which of the following is an example of strategic entry deterrence?

Business
1 answer:
Oksanka [162]3 years ago
5 0

Answer:

E. both a and b

Explanation:

Strategic entry deterrence refers to any act that prevents potential market participants from competing in a particular market. Such actions or barriers to entry may include rival capture, product differentiation for extensive product development, capacity building to lower unit costs, and predatory pricing. While many entry barriers can be created, time can also be a barrier to entry because potential marketers are less likely to enter the market if it takes longer to complete the task. they spend and lose their profits over time. Entrance barriers are sometimes considered anti-competitive and may be subject to different competition laws.

One way to block access to the new entrants is to produce products at a lower price than the monopoly level. This not only reduces profitability, but also makes them less attractive to participants, but also means that the current person is more likely to meet market demand and to leave any potential bidder in the market.

The current company has the advantage of being the first carrier, so it can act in a way that it knows will affect the decision of the participant. Assuming incomplete data (ie, the costs of the current firm are known only) can only make assumptions about the cost structure of the participant with price and output levels. Therefore, duty people can use them as a signal to any potential bidder.

An officer trying to strategically hinder access may do so by trying to minimize market entry. Expected revenues depend heavily on the number of customers waiting for the participant - so one way to prevent access is the "shutting-down" consumer.

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Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $29
Ugo [173]

Answer:

Levered -  $280,800,000

Unlevered - $398,400,000

Explanation:

The formula to compute the equity value is shown below:

Equity value = Number of outstanding shares × current worth per share

For Levered, the equity value would be

= 2,600,000 shares × $108

= $280,800,000

For Unlevered, the equity value would be

= 4,800,000 shares × $83

= $398,400,000

We simply multiply the number of outstanding shares with the current worth per share so that the equity value can come.

7 0
3 years ago
it is generally agreed that the role of strategy is to: options make best use of resources make profits for the organization mak
seraphim [82]
I think the correct answer from the choices listed above is the first option. It is generally agreed that the role of strategy is to <span>make best use of resources. It is very important to use every little thing we have to our advantage. Hope this helps. Have a nice day.</span>
5 0
3 years ago
Weismann Co. issued 15-year bonds a year ago at a coupon rate of 4.9 percent. The bonds make semiannual payments and have a par
Neporo4naja [7]

Answer:

The price of the bond is $ 1,041.22  

Explanation:

In calculating the price of the bond i discounted the future cashflows consisting of coupon payment and par value at redemption using the discount factor 1/(1+r)^N where r is the semi-annual YTM and N is the relevant period of cash flow.

The remaining coupon payments imply 14 years as a year has passed since the bond was issued.

Find attached spreadsheet.

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6 0
2 years ago
A formal written statement of management's plans for the future, expressed in financial terms, is a a.budget b.gross profit repo
Yanka [14]

Answer:

a.budget

Explanation:

The budget refers to the estimation of the revenues earned and expenses incurred so that the company could able to take the decisions according to that.

It also a formal and written statement that shows the management plans for the upcoming future i.e to be expressed in a numerical term or we can say in financial terms

Hence, the correct option is a. budget

3 0
3 years ago
Management Theories, Inc. at a cash price of $1.5 million. Management Theories, Inc. has short-term liabilities of $500,000. As
Pavlova-9 [17]

Answer:

$1,102,820

Explanation:

 The computation of the net present value is shown below:

= Present value of yearly cash inflows - initial investment

where,

Present value of yearly cash inflows is

= Annual year cash inflows × PVIFA factor

= $300,000 × 2.9906

= $897,180

And, the initial investment is

= $1,500,000 + $500,000

= $2,000,000

So the net present value is

= $897,180 - $2,000,000

= $1,102,820

4 0
3 years ago
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