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goblinko [34]
3 years ago
8

Consumers are buying _______________ goods when they switch between brands of convenience goods out of boredom or the desire to

change. Purchases may have been preplanned in that consumers "knew" they were going to purchase a specific product or brand but changed their minds in-store, deciding to try something different.
Business
1 answer:
suter [353]3 years ago
7 0

Answer:

Variety-seeking.

Explanation:

Consumers are buying variety-seeking goods when they switch between brands of convenience goods out of boredom or the desire to change. Purchases may have been pre-planned in that consumers "knew" they were going to purchase a specific product or brand but changed their minds in-store, deciding to try something different. Variety-seeking behavior is depicted by the consumers when they have very low involvement with in the buying process and there are significant differences are also present among brands. Consumers do lot of brand switching here. Consumers switch brands only for the sake of trying something new rather than dissatisfaction with the brand.

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Answer:

Slow​ 'and Steady cost of equity​ capital is <u>11%</u>.

Explanation:

Note: The question is not complete as the important data are committed. The full question is therefore provided before answering the question as follows:

Slow n' steady Inc, has a stock price of $30, will pay a dividend next year of $3, and has expected dividend growth of 1% per year. what is your estimate of slow n steady's cost of equity capital?

The explanation to the answer is now given as follows:

The cost of equity can be calculated using the Gordon growth model (GGM) formula for calculating current stock price

The GGM has the assumption that there will be a stable dividend growth rate year after year forever.

Tje GGM formula is given as follows:

P = d1 / (r - g) ……………………………………… (1)

Where;

P = Current share price = $30

d1 = Next year dividend = $3

r = Required rate of return or cost of equity = ?

g = Expected dividend growth rate = 1%, or 0.01

Substituting the values into equation (1) and solve for r, we have:

30 = 3 / (r - 0.01)

r - 0.01 = 3 / 30

r - 0.01 = 0.10

r = 0.10 + 0.01

r = 0.11, or 11%

Therefore,  Slow​ 'and Steady cost of equity​ capital is <u>11%</u>.

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b. $790,000.

Explanation:

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