Answer: Option E
Explanation: In simple words, it refers to the situation in which two rival companies in an industry cut their prices with the objective of cutting the others customers and gaining a higher market share.
Generally it is performed for short term so that other firm could be demolished from the market but a company having strong reserves can perform it for a long term as well.
It is more evident in industries where the products of two companies are close substitutes of each other and there are few firs in the industry.
You and your friends often do this sort of thing. This is an example of...generalized reciprocity
Generalized reciprocity :
Generalized reciprocity is the phenomenon that individuals treat others in the same way that others treated them in the past. Besides the behavioral outcomes, whether intention information also manipulates generalized reciprocal behavior remains unclear.
What is an example of generalized reciprocity?
Generalized reciprocity is gift giving without the expectation of an immediate return. For example, if you are shopping with a friend and you buy him a cup of coffee, you may expect him to buy you one in return at some time in the future.
What do anthropologists mean by generalized reciprocity?
Generalized reciprocity refers to a type of exchange of goods and/or services where the giver and the recipient do not keep an exact ledger of value or stipulate the amount or duration of return.
Learn more about Generalized reciprocity :
brainly.com/question/16931411
#SPJ4
Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a ta
hjlf
Answer:
The earnings per share figure is $1.89
Explanation:
Sales of $602,000
Costs of $256,000
Depreciation expense of $62,500
Interest expense of $29,500
Tax rate of 40 percent.
-> Profit Before Tax = Sales - Cost - Depreciation Expense - Interest expense
= $602,000 - $256,000 - $62,500 - $29,500
= $254,000
Net profit = Profit before Tax x (1 - Tax rate) = $254,000 * (1 - 40%) = $152,400
Earnings per share = (net profit - dividend paid for preferred stock)/ common stock outstanding = ($152,400-$44,500)/ 57,000
= $1.89
